RECOTON TO PAY $14 MILLION FOR CUSTOMS VIOLATIONS
U.S. Customs said Tuesday that Recoton Corp. will pay $14 million after
admitting to numerous counts of country-of-origin mismarking and
undervaluation of imports.
The Lake Mary, Fla.-based consumer electronic accessory, loud speaker
and car audio company has been the subject of a Customs investigation since
July 1994. The investigation focused on country-of-origin marking,
duty-free eligibility under the Caribbean Basin Initiative and
undervaluation of merchandise imported from late 1989 through mid 1994.
The company settled civil claims by entering into an agreement with
Customs to resolve all pending matters. Criminal fines will be deducted
from the $14 million.
"Importers are required to take ‘reasonable care’ to ensure that they
comply with U.S. import laws," said Raymond W. Kelly, U.S. Customs
Commissioner. "This case shows that the penalties can be steep if they fail
to do so."