A buddy of mine just bought a Century M70B1 and it was way off target.  Even after moving the front post all the way up and over as far as it would go, it was still shooting 18" high and right at 25 yds.  I'd read about watching out for "canted front sights" on some of these guns, but this one's front sight looks like it's straight.  It's definitely not obivous.  Could this be a bent barrel (supposedly a new US-made barrel)  

I felt bad because my friend bought it based on my recommendation since the one I'd bought shot really great right out of the box without any sight adjustments.  He brought it back to the dealer and they were going to either fix it or swap it with another one, but how do you fix something this far off? If the barrel is grooved for the front sight pin, won't the previous groove be a problem?  I’m just wondering if he should demand a swap.  

Look also for the rear sight block to be canted,mine was a pain to get on target.

See if dealer will swap it or, contact century and return it.  Looks like it will need to be worked on either way. Yugos typically have a better rep  compared to the romanian.

Check your rear sight leaf.
Mine was bent and after replacing with a new one all is good.