PHILADELPHIA, PA — A French-based outdoor furniture manufacturer with operations in Berks County has agreed to pay nearly $5 million to settle allegations that it violated U.S. trade laws by evading duties designed to protect domestic industries from unfair foreign competition.
Grosfillex, Inc., headquartered in Robesonia, Pennsylvania, will pay $4.9 million to resolve claims that it circumvented antidumping and countervailing duties (AD/CVD) on aluminum components imported from the People’s Republic of China, according to an announcement Wednesday by U.S. Attorney David Metcalf for the Eastern District of Pennsylvania.
Federal authorities allege that Grosfillex misrepresented certain extruded aluminum parts as being exempt from U.S. trade duties. In some cases, the company is accused of disguising the origin of the aluminum by assembling the parts into fake “kits” that were then presented to U.S. Customs and Border Protection (CBP) as finished products rather than raw materials subject to tariffs. In other instances, the company allegedly failed to amend previously filed customs declarations after discovering they contained false information.
“This settlement should serve as a warning that the United States Attorney’s Office for the Eastern District of Pennsylvania will use every tool available to combat fraud in international trade,” Metcalf stated. “We will pursue those who seek an unfair advantage in U.S. markets by attempting to evade paying the customs, duties, or tariffs on foreign imports meant to level the playing field for U.S. manufacturers.”
The U.S. Department of Commerce levies antidumping duties to prevent foreign firms from undercutting U.S. businesses by selling products below fair market value, while countervailing duties address unfair subsidies provided by foreign governments. Both are enforced by CBP to ensure competitive equity in American markets.
Edward V. Owens, Special Agent in Charge of Homeland Security Investigations (HSI) in Philadelphia, emphasized the broader implications of the case. “By uncovering and dismantling intricate schemes to defraud the government, we ensure that all businesses operate on a fair and level playing field,” he said, highlighting the interagency effort involving HSI, CBP, and the U.S. Department of Justice.
The resolution also concludes a whistleblower lawsuit filed under the False Claims Act by Edward Wisner, a former Grosfillex employee. That statute allows private citizens to sue on behalf of the federal government and share in any financial recovery. As part of the settlement, Wisner will receive approximately $963,000. He was represented by attorney David J. Caputo of Youman & Caputo LLC, based in Philadelphia.
The case was handled by Assistant U.S. Attorney Mark J. Sherer and supported by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section.
While Grosfillex has agreed to the financial settlement, the company has not admitted liability. The claims resolved by the settlement remain allegations only.
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