Hitachi Fined $60 Million Over Import Duties
The U.S. Customs Service said Thursday that it has levied a $60-million fine against Hitachi America Ltd., its Japanese parent corporation and three employees for filing false documents during their importing of subway cars.
A Hitachi spokesman confirmed the fine and said the company was still considering whether to file an appeal. “We are surprised by this inappropriate action,” the spokesman said.
According to the Customs Service, Hitachi failed to declare and pay about $851,000 in customs duties for importing subway cars ordered by the Metropolitan Atlanta Rapid Transit Authority between 1983 and 1988.
The Customs Service said Hitachi was originally given a contract to provide 30 subway cars at a cost of $35 million. However, under an additional purchase option in the contract, the Atlanta transit agency ultimately bought a total of 120 cars at a total cost of $160 million.
The Customs Service said that under the original contract, Hitachi was responsible for reporting adjustments to the contract’s value resulting from fluctuations in the value of the yen and any increases in the cost of labor and materials. Hitachi failed to report those changes, the agency said.
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