The U.S. government has filed a $286 million claim against First Brands Group, accusing the bankrupt auto-parts supplier of tariff fraud. Authorities allege the company undervalued goods imported from China to avoid paying higher duties.
The claim was submitted in the company’s bankruptcy proceedings. It targets duties owed from years of what prosecutors describe as systematic underpayment.
First Brands Group is an automotive parts supplier. It previously operated under the name Affinia Group.
Court documents allege the company deliberately misstated the value of Chinese imports. This practice allowed it to pay lower tariffs than legally required.
The government’s action marks a significant enforcement move in the trade sector. It signals increased scrutiny of tariff compliance during bankruptcy cases.
The company has not yet issued a public response. The bankruptcy court will determine how the claim is treated among other debts.
This case highlights the risks companies face when managing import valuations. It underscores the government’s focus on recovering underpaid tariffs.
