Amazon.com wins appeal in tariff evasion case

Yesterday 16:30

A U.S. federal appeals court has ruled in favor of Amazon.com, rejecting allegations that the company knowingly facilitated tariff evasion on products sold through its platform.

The case was brought forward by Henig Furs, a U.S.-based business, which accused Amazon of allowing foreign manufacturers to understate the value of shipments in order to reduce import tariffs and avoid inspection fees. The claim argued that this practice unfairly harmed domestic competitors and violated the False Claims Act.

However, the 2nd U.S. Circuit Court of Appeals found no sufficient evidence that Amazon was aware of or intentionally ignored any fraudulent activity. The court noted that lower prices could be explained by legitimate factors such as production scale differences or lower labor costs in foreign markets.

The judges also stated that pricing alone was not enough to prove knowledge of wrongdoing, upholding an earlier decision that dismissed the lawsuit in January 2025. The ruling reinforces the legal standard requiring clear evidence of intent in tariff-related fraud claims.

The decision marks a significant win for Amazon amid ongoing scrutiny over its global marketplace practices and trade compliance responsibilities.