Goods made in China, Taiwan, India or Malaysia cannot be used in government contracts. Therefore, whistleblower rewards are available for reporting a company using goods or supplies made in China, Taiwan, India or Malaysia in U.S. government contracts.

This article explains why it is wrong for a government contractor to use any goods, supplies or services from China, Taiwan, India or Malaysia and even how to get a reward for reporting a company using goods or supplies made in China, Taiwan, India or Malaysia for any U.S. government contract or many state government contracts.

The U.S. and many nations entered into an agreement known as the Trade Agreement Act (TAA). The purpose of the Trade Agreement Act is to prevent unfair competition, engage in improper labor practices, and allow the nations agreeing to the Act to certain pricing benefits. However, not all countries agreed to abide by the conditions. Therefore, the U.S. Government and most states do not allow goods to be used in government contracts that are not made in countries that signed the Trade Agreement Act. The four most notable countries are China, Taiwan, India or Malaysia. This means that goods or services made in China, Taiwan, India or Malaysia cannot be used in government contracts. Thus, a government contractor cannot even use parts of goods made in China, Taiwan, India or Malaysia.

It is a violation of the False Claims Act for federal government contractors to sell goods, supplies or services that were made in countries that are not parts of the Trade Agreement Act (TAA). A whistleblower can receive a large monetary reward for reporting a company selling goods, supplies or services to the government if they are made in China, Taiwan, India or Malaysia. The False Claims Act provides whistleblower rewards of between 15% and 30% of the amount the government collects back from a government contractor that used goods, supplies or services make in China, Taiwan, India or Malaysia.

In addition, this prohibition against using goods, supplies or services made in China or Taiwan applies to goods or supplies sold under the General Service Administration (GSA) program. In addition, many government contracts also contain a Buy America Act clause that prohibits using goods made anywhere outside of the U.S., and not just those made in China, Taiwan, India or Malaysia.

Companies supplying goods or supplies made in China, Taiwan, India or Malaysia happens more often that you think. For example, two large office supply companies were reported by whistleblowers for violating the Trade Agreement Act (TAA) and GSA rules because they were selling office supplies to the government that were made in China, Taiwan, India or Malaysia. Whistleblowers rewards of over $2 million were paid in just those two cases for reporting GSA and TAA fraud by supplying goods made in China, Taiwan, India or Malaysia.

The GSA has a website where all government agencies buy thousands of different types of goods and supplies. But to sell on the GSA website, the contractor must certify that no part of the goods or supplies are made in China, Taiwan, India or Malaysia. Unfortunately, it is nearly impossible for the GSA to figure out when goods or supplies are made in China, Taiwan, India or Malaysia. That’s why so many companies cheat and take unfair advantages over honest American companies by using goods or supplies made in China, Taiwan, India or Malaysia as prohibited by the Trade Agreement Act. That’s also why it is so important for whistleblowers to step forward and report when a company is using goods or supplies made in China, Taiwan, India or Malaysia in a government contract.

The False Claims Act provides whistleblowers rewards to report Trade Agreement Act fraud and GSA fraud if a contractor is using goods or supplies made in China, Taiwan, India or Malaysia.

If you work for a company that is using products, goods or supplies made in China, Taiwan, India or Malaysia, do the right thing and report it. You may also receive a reward if you have an attorney follow the procedures for claiming a reward.

Even if you are a competitor, if you can show that the contractor is using products, goods or supplies made in China, Taiwan, India or Malaysia, you can apply for a reward. I have represented a competitor that was underbid on a government contract. We were able to prove that his competitor was buying the products from China for their commercial government contracts, and the government paid him a reward.

The key to receiving a reward for reporting Trade Agreement Act fraud, General Service Administration (GSA) fraud, or Buy America Act fraud for goods or supplies made in China, Taiwan, India or Malaysia, is to have specific and detailed proof. It’s not sufficient to merely suspect that the company bought the goods in China, Taiwan, India or Malaysia because the prices were too low.

If your company (or a competitor) is supplying goods or supplies to the government either directly or through the GSA website that are made in China, Taiwan, India or Malaysia, contact Mr. Hesch to help you evaluate if you have enough evidence or the right type of a case.

Mr. Hesch would be pleased to review your potential Trade Agreement Act fraud, General Service Administration (GSA) fraud, or Buy America Act fraud allegation and determine if he can represent you to apply for a reward for reporting goods made in China, Taiwan, India or Malaysia for use in a government contract.
See the link below “Do I have a case” to have Mr. Hesch review your potential whistleblower reward case. See the link below “Report Fraud” to learn more about the government’s whistleblower reward program.

Click here for a pdf version of this article: Report a company using goods or supplies made in China, Taiwan, India or Malaysia in government contracts and receive a reward