MDJohn Posted February 11, 2013 Report Share Posted February 11, 2013 What obligations, liabilities, or penalties under US government contracting law might there be for a US contractor whose overseas personnel may have committed fraud (but not bribery) on a foreign government's customs? Company A is a US company that makes and sells supplies (clothing) to both commercial buyers and governments. Company A sells to the USG both directly and via a reseller with a GSA schedule. Company A also sells in overseas markets. Company A has just begun an internal investigation whether one of its lower managers has instructed his people to do a "bait and switch" to minimize a foreign country's import customs duties. Basically, the suspicion is that the manager told his people to submit one set of goods to the foreign customs, as a sample of the goods being imported, to get a lower customs duty, with the plan of importing similar but different, higher-vlaue goods. Apparently, this is common in the foreign country but not consistent with Company A's way of doing business. Company A's foreign lawyers are confident that the matter is not very serious and will not result in any foreign penalties. Company A just wants to make sure that it doesn't have any problems with its USG contracts or subcontracts from this foreign problem. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted February 12, 2013 Report Share Posted February 12, 2013 Ask an attorney. Link to comment Share on other sites More sharing options...
wvanpup Posted February 13, 2013 Report Share Posted February 13, 2013 My inclination is to treat this seriously. FAR 9.406-2 authorizes debarment for a number of different things, including making false statement or any offense indicating a lack of business integrity. I am not willing to assume that a business willing to cheat a foreign country will not try to cheat the United States, regardless of how serious the matter is treated by the foreign country. Link to comment Share on other sites More sharing options...
Heretalearn Posted February 13, 2013 Report Share Posted February 13, 2013 If the company did not violate US law, did not violate or breach any of its Federal contracts or subcontracts, answers all representations and certifications in conjunction with its Federal transactions honestly and accurately and does not make any false statements with regard to the situation, I doubt adverse ramifications are likely to arise. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted February 14, 2013 Report Share Posted February 14, 2013 MDJohn: Ask an attorney. Link to comment Share on other sites More sharing options...
policyguy Posted February 14, 2013 Report Share Posted February 14, 2013 Agree with Vern - ask an attorney and you may want to also look over FAR Subpart 3.10 Contractor Code of Business Ethics and Conduct. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted February 14, 2013 Report Share Posted February 14, 2013 A deliberate violation of the law of a foreign country, especially an ally, certainly might bear on matters of integrity and business ethics. See FAR 9.104-1(d) and 9.406-2(a)(5). Link to comment Share on other sites More sharing options...
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