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Wednesday, July 22, 2026

U.S. Producers Of Plastic Grocery And Shopping Bags Applaud $7.3 Million False Claims Act Settlement Over Evasion Of Antidumping Duties - PR Newswire

WASHINGTON, July 22, 2026 /PRNewswire/ -- This release is issued by King & Spalding: The U.S. Department of Justice has announced that New York Packaging II LLC, doing business as Redi-Bag USA, and its CEO, Jeffrey Rabiea, agreed to pay $7.3 million to resolve False Claims Act ("FCA") allegations that they misrepresented the country of origin of imported polyethylene retail carrier bags ("PRCBs") and thereby evaded antidumping duties owed to the United States. According to the lawsuit, defendants knew that certain PRCBs they imported had been manufactured in China but nevertheless identified Hong Kong as the country of origin on customs entry forms to avoid paying the applicable 77.57 percent antidumping duty.

Currently, there are antidumping orders on PRCBs from China, Indonesia, Malaysia, Taiwan, Thailand, and Vietnam. The purpose of the antidumping law is to offset the unfair competitive advantage that foreign exporters enjoy as a result of selling merchandise in the United States at less than fair value. There is also a countervailing duty order on such plastic bags from Vietnam, which offsets unfair government subsidies received by Vietnamese bag producers. The antidumping and countervailing duty laws are intended to provide relief to U.S. manufacturers and U.S. workers by requiring duties to be collected on the unfairly traded imports. The failure by importers to declare entries as being subject to an antidumping or countervailing order undermines that relief and...



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