The Department of Justice announced a False Claims Act settlement with a company who purchased apparel on a delivered duty paid basis (commonly referred to as DDP or LDP). The purchaser, Byer California, admitted to either permitting or turning a blind eye to the fact that the importer from which it purchased the goods was undervaluing the imported garments.

This case highlights the fact that DDP purchasers are not insulated from liability for customs violations just because they are not the importers of record. DDP purchasers are well advised to implement due diligence programs to ensure that their vendors are accurately declaring their goods to Customs.

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