Canada
May 21, 2026
Canadian steel firms to pay $19M over alleged duty-evasion scheme
Written by Laura Miller
Two Ontario-based steel importers and their president have agreed to pay $19 million to settle US allegations that they avoided customs duties on flat-rolled steel by falsely declaring its origin, the US Department of Justice said.
The government alleges Farjess Inc., Royal Canadian Steel Inc., and their president, Feroz Jessani, claimed the steel originated in Canada or the United States. Officials say they knew it was actually produced in China, Indonesia, Italy, Turkey, or Vietnam.
In a statement, Assistant Attorney General Brett A. Shumate said import duties protect US interests and the domestic steel sector. He added the DOJ will pursue anyone who tries to evade them.
US Attorney Jerome F. Gorgon Jr. called the border “the frontline of American industry,” noting that half of all US-Canada land trade moves through his district.
The case began with a whistleblower complaint filed by broker Shamsh Dhala, who worked with Farjess. Under the False Claims Act, he will receive about $3.61 million from the settlement.
The investigation was coordinated through the DOJ’s Trade Fraud Task Force, with support from Customs and Border Protection (CBP), Homeland Security Investigations, and the US Attorney’s Office for the Eastern District of Michigan.
Officials said the case reinforces the government’s push to enforce trade laws and protect domestic manufacturers.
The DOJ said the settlement resolves allegations only and that no liability has been determined.
