Enhanced Enforcement of Trade and Customs Fraud: The Role of the U.S. Department of Justice's Trade Fraud Task Force

Strategic Insights -

The U.S. Department of Justice ("DOJ") and U.S. Department of Homeland Security ("DHS") have formed the Trade Fraud Task Force to target importers and affiliates who defraud the United States government by evading tariffs, duties, and import restrictions. This development marks the latest incarnation of President Trump's "America First Trade Policy" and underscores the Administration's efforts to prioritize enforcement focused on tariff evasion.

The Task Force is designed to synchronize efforts among the DOJ's civil and criminal divisions, U.S. Customs and Border Protection ("CBP"), and Homeland Security Investigations to enhance enforcement against importers and other parties that seek to evade tariffs and other duties, smuggle goods into the United States, and engage in other import-related misconduct. The Task Force will bring enforcement actions under a number of statutes, including the Tariff Act of 1930, the False Claims Act, and parallel criminal prosecutions, penalties, and seizures under Title 18's trade fraud and conspiracy provisions.

Key Takeaways:

  • The Trade Fraud Task Force is a cross-agency effort between the DOJ and DHS to target importers and affiliates who defraud the United States government by evading tariffs, duties, and import restrictions.
  • The Task Force is designed to implement the DOJ's May 12, 2025 white-collar enforcement plan, which included trade and customs fraud as top priorities.
  • The Task Force will bring enforcement actions under various statutes, including the Tariff Act of 1930, the False Claims Act, and parallel criminal prosecutions, penalties, and seizures under Title 18's trade fraud and conspiracy provisions.
  • Importers should enhance compliance programs to mitigate penalties and ensure that their policies and procedures around classification, country of origin, and valuation are accurate and robust.
  • Audit trade practices and disclose where appropriate to vigorously enforce customs regulations.
  • Companies with robust import businesses should review their internal compliance procedures to identify potential weaknesses and vulnerabilities.
  • Whistleblowers are encouraged to report unfair trade practices using the Criminal Division's Corporate Whistleblower Program, which offers awards for information leading to significant enforcement actions.
  • The Task Force's efforts are likely to lead to more criminal trade and customs fraud cases under various statutes, including those covering wire fraud and smuggling.

Statistics:

  • Since July 2025, the U.S. government has announced multi-million-dollar settlements involving allegations of customs duty evasion on products imported from China.
  • In 2025, the CBP uncovered over $400 million in duty evasion by bad actors who undercut American workers.
  • Over $12.4 million was paid to settle False Claims Act allegations relating to evaded customs duties in a recent case.

Sources:

  • U.S. Department of Justice Office of Public Affairs, July 23, 2025, available at https://www.justice.gov/opa/pr/importers-agree-pay-68m-resolve-false-claims-act-liability-relating-voluntary-self (last accessed September 10, 2025).
  • U.S. Customs and Border Protection, August 15, 2025, available at https://www.cbp.gov/newsroom/national-media-release/cbp-uncovers-more-400-million-duty-evasion-bad-actors-who-undercut (last accessed September 10, 2025).
  • U.S. Department of Justice Office of Public Affairs, August 19, 2025, available at https://www.justice.gov/opa/pr/allied-stone-inc-and-company-official-agree-pay-124m-settle-false-claims-act-allegations (last accessed September 10, 2025).