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DOJ: Wanxiang will pay $53M to settle US probe of imported Chinese auto parts

The Justice Department announced on Thursday that it had reached an agreement with the U.S. branch of Chinese auto parts supplier Wanxiang regarding import tariffs on wheel hub assemblies, and other parts imported over a period of five years.

The U.S. Government said that the settlement ended nearly 10 years litigation. It collected all the revenue lost it had sought, and more than $30 million in civil penalties. Wanxiang America has not admitted any wrongdoing. Wanxiang America did not admit wrongdoing.

According to the government, some parts in question were subjected to tariffs of upto 93% as a result of the anti-dumping order.

Wanxiang, as well as two U.S.-based Wanxiang lawyers, did not immediately respond to comments.

Wanxiang Group Automotive Parts Unit was previously described as?China's largest automotive component company by revenue. Wanxiang America was approved in 2013 to buy A123 Systems, an American maker of electric vehicle batteries.

After launching an audit, the U.S. Government demanded payment of almost $100 million in 'back tariffs and penalties in 2019. The U.S. government filed a lawsuit in 2022 for Wanxiang imports from 2007 to 2012. Justice Department stated that Wanxiang misclassified "multiple categories of automotive parts, accessories, and components under incorrect tariff provisions." Reporting by David Shepardson, Washington; editing by Lisa Shumaker and Jacqueline Wong

(source: Reuters)