P.M. BRIEFING : K mart Fined in Textile Imports
The U.S. Customs Service said today that it fined K mart Corp. and its subsidiary, K mart Taiwan Ltd., $6 million on charges of violating quota controls on textile imports from Taiwan and South Korea.
“This marks one of the largest penalties we have ever collected in a textile case,” Customs Commissioner Carol Hallett said.
A government investigation revealed that K mart, with headquarters in Troy, Mich., manipulated the prices of various textile articles imported from the Asian countries beginning in 1982.
“This settlement figure represents K mart’s payment for the underpaid duties as well as a mitigated penalty amount negotiated between K mart, Customs and the Treasury Department,” Hallett said.
“The quota system controlling textile imports is meant to ensure that all countries exporting to the United States and all American importers will have a fair share of the world’s greatest consumer market,” Hallett said.
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