Kansas City Attorneys for False Claims Under "Buy American" and Customs Laws

Workers Can Fight Back Against Some Businesses that Hurt American Manufacturing Jobs

We have all seen American manufacturing jobs disappear and get shipped overseas to countries where workers are paid pennies on the dollar. Free trade and open markets can make it seem like there is no way to stop Americans from losing their jobs to foreign competition. The competitive disadvantages that the Buy American laws and the customs duties were designed to eliminate for American businesses and their American workers are enforced, which levels the playing field against unfair foreign imports.

But there are two areas of federal law that favor American manufacturing jobs over foreign competition. And, when an employee sees that a company is violating these laws, the employee can get money compensation — both for him or herself and for the U.S. government — if the employee speaks up.

"Buy American" and Customs Laws that Protect U.S. Jobs

First, various “Buy American” laws generally require businesses contracting with the federal government to certify that the goods they sell to the government, or the components used in construction contracts with the government, are manufactured either in the United States or in certain approved countries with whom the United States has trade agreements.

Second, even before President Trump announced new tariffs on foreign steel and aluminum in early 2018, the United States had existing tariffs (typically called “customs duties”) placed on certain products from certain countries due to unfair competition to the detriment of competing American businesses.

The False Claims Act: How to Stop Businesses that Cheat the Government

Some businesses nonetheless defraud the federal government by certifying compliance with “Buy American” laws by selling the federal government products, or using components in federal construction projects, that were manufactured in non-approved foreign countries, most notably China. Some other businesses defraud the federal government by making false statements concerning imported products in order to unlawfully avoid customs duties.

In either case, a federal law, known as the False Claims Act, incentivizes whistleblowers, who can be either individuals or business entities, to bring lawsuits to remedy such fraud against the government. The False Claims Act provides that the government can claim damages of three times the amount of the fraud, plus substantial penalties.

False Claims Act lawsuits have resulted in the government recouping payments made by government agencies to businesses who engaged in “Buy American” fraud, and to recover unpaid customs duties that businesses fraudulently avoided paying to the government.

Contact an Experienced False Claims Act and Customs Laws Attorney

If your employer is defrauding the government by making false statements regarding imports to avert customs duties, you may be able to bring a claim on behalf of the government as a whistleblower. Located in the greater Kansas City area, Brady & Associates provides high-quality legal representation for whistleblowers in False Claims Act lawsuits. Call (913) 696-0925 to learn more about our legal services.