{"id":685129,"date":"2026-05-21T23:11:09","date_gmt":"2026-05-21T23:11:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/685129\/"},"modified":"2026-05-21T23:11:09","modified_gmt":"2026-05-21T23:11:09","slug":"brampton-steelmakers-hit-with-26m-fine-for-evading-duties","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/685129\/","title":{"rendered":"Brampton steelmakers hit with $26M fine for evading duties"},"content":{"rendered":"

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Two Brampton-based steelmakers have agreed to pay $26 million to resolve allegations by the U.S. Department of Justice that they circumvented duties on steel originating from Asia and Europe.<\/p>\n

Article content<\/p>\n

Farjess Inc. and Royal Canadian Steel Inc., along with Feroz Jessani, who is part owner and president of the two companies, agreed to pay US$19 million in restitution to settle allegations that they avoided duties by misrepresenting the origin of certain flat-rolled steel.<\/p>\n

Article content<\/p>\n

\u201cImport duties serve an important role in protecting our national interests generally and the American steel industry in particular,\u201d said Assistant Attorney General Brett A. Shumate of the Justice Department\u2019s Civil Division\u00a0in a news release Wednesday.<\/a> \u201cThe Department of Justice will zealously pursue anyone who fraudulently evades the duties owed on steel products imported into this country.\u201d<\/p>\n

U.S. officials say the origin of the steel was not from Canada or the U.S. as the Canadian companies claimed, but from China, Indonesia, Italy, Turkey, or Vietnam.<\/p>\n

Royal Canadian Steel did not respond to a message Thursday seeking comment from the Toronto Sun.<\/p>\n

Justly entering U.S. market<\/p>\n

To enter into the U.S., an importer must declare the country of origin of the steel, its value, whether it is subject to duties, and the amount of duties owed. The U.S. Customs and Border Protection (CBP) collects all applicable duties.<\/p>\n

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The settlement resolves a civil lawsuit filed by Shamsh Dhala, a broker who worked with Farjess Inc., under the whistleblower provision of the False Claims Act. The lawsuit was filed in the Eastern District of Michigan. Dhala will receive approximately US$3,610,000 of the settlement proceeds, officials said.<\/p>\n

Under the False Claims Act, a private party can sue on behalf of the U.S. government and share in a portion of the government\u2019s recovery.<\/p>\n

\u201cImport duties serve an important role in protecting our national interests generally and the American steel industry in particular,\u201d U.S. Assistant Attorney General Brett A. Shumate said.<\/p>\n

Read More<\/p>\n

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<\/a>A new high attained<\/p>\n

The news release said the settlement was record setting.<\/p>\n

\u201cThis case sends a clear message that CBP, in partnership with our federal counterparts, will continue to uphold the rule of law and protect the interests of American businesses and consumers,\u201d said Jonathan Restivo, the acting director of the Center of Excellence and Expertise (CEE), Base Metals.<\/p>\n

In February 2025, President Donald Trump announced a 25% tariff on Canadian steel, and then doubled the rate to 50% in June under the Fair Trade Act.<\/p>\n

The act empowers the U.S. president to impose import restrictions or tariffs if certain goods are being imported in quantities\u00a0or under circumstances\u00a0that threaten the country\u2019s national security.<\/p>\n

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