Hong Kong (CNN Business) A billionaire aluminum magnate from China has been indicted in the United States and accused of orchestrating a scheme to avoid paying nearly $2 billion in tariffs.

The US Department of Justice unsealed a grand jury indictment on Wednesday alleging that Liu Zhongtian, a businessman also known as "Uncle Liu" and "Big Boss," conspired to import aluminum without paying duties.

Liu is the former chairman of the aluminum company China Zhongwang. The indictment, which is dated May 7, alleges that Liu and two other people imported aluminum extrusions — bars or tubes — disguised as "pallets" via ports in Southern California.

In doing so, the company avoided $1.8 billion in customs duties that were first imposed in 2011.

The imports "were simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets, which would be finished goods not subject to the duties," prosecutors said in a statement.

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