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US reaches USD 19 million settlement with Canada-based steel companies

The US Department of Justice announced that Farjess Inc. and Royal Canadian Steel agreed to pay USD 19 million to resolve allegations that they avoided customs duties by falsely declaring the origin of steel imports.

US reaches USD 19 million settlement with Canada-based steel companies

The US Department of Justice (DoJ) stated that Canada-based Farjess Inc., Royal Canadian Steel Inc., and the companies’ president and co-owner Feroz Jessani agreed to pay USD 19 million to settle allegations related to improper customs declarations for flat rolled steel imports.

The settlement is based on claims that, between May 2019 and January 2025, the companies avoided customs duties payable to the US by declaring steel products originating from Europe and Asia as products of Canada or the US. Authorities stated that the actual countries of origin included China, Indonesia, Italy, Türkiye, and Vietnam.

The investigation was launched following a whistleblower lawsuit filed by a customs broker working with Farjess Inc. The claimant is expected to receive approximately USD 3.61 million under the settlement.

US authorities emphasized that the settlement does not constitute an admission of guilt and only resolves civil allegations.

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