The United States has filed a civil fraud lawsuit in the United States Court of International Trade against importer Uni-Tile & Marble Inc., and its chief executive officer, Xin Mian Pan, jointly and severally, to recover $67.9 million in unpaid customs duties on merchandise imported from the People’s Republic of China (China). The government also seeks $222.5 million in fraud penalties from the defendants.
“This filing reflects the Justice Department’s unwavering commitment to enforcing the nation’s trade laws and holding accountable those who attempt to evade them,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will continue to use every enforcement tool at our disposal to ensure that U.S. manufacturers and American workers are competing on a level playing field.”
“CBP remains firmly committed to safeguarding the U.S. economy, enforcing fair trade standards, and defending American jobs from unlawful commercial practices,” said Acting Executive Director Salvatore Ingrassia of Cargo and Conveyance Security, Office of Field Operations. “These civil penalties demonstrate that attempts to undermine our economy and American businesses carry serious consequences.”
Specifically, the government alleges that from September 2018 to August 2023, defendants fraudulently transshipped, undervalued, and misdescribed merchandise via a scheme that involved multiple shell companies. As a result of this alleged conduct, defendants made or caused to be made materially false statements and omissions to U.S. Customs and Border Protection (CBP) in 503 declared shipments of imported merchandise or “entries” of wooden cabinets and vanities, quartz surface products, ceramic tiles, and other merchandise that deprived the United States of lawful duties.
On Dec. 18, 2025, the U.S. Attorney’s Office for the Northern District of California announced criminal conspiracy charges, among other charges, including wire fraud, smuggling, and international money laundering, against Mr. Pan, Uni-Tile, and several other parties involved in defendants’ ongoing scheme to evade custom duties and to violate U.S. trade and finance laws. See Bay Area Businessmen, Chinese National, And Three Companies Charged With Scheme To Evade Millions In Customs Duties, U.S. Attorney’s Office Northern District of California, (Dec. 18, 2025).
In the civil complaint, the government seeks to enforce CBP’s demand that defendants pay additional duties and penalties because the conduct alleged against defendants in the criminal case also violated 19 U.S.C. § 1592(a), which is a provision of the Tariff Act of 1930.
To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with Untied States trade laws
The case is being handled by Civil Division’s Commercial Litigation Branch, National Courts Section and the United States is represented by National Courts Section Trial Attorney Anna Walker.
The claims in the complaint are allegations only, and there has been no determination of liability.