We have written previously (here, here, and here) about a marked increase in cusoms-related fraud enforcement, particularly in light of the current administration’s focus on increased tariffs on imported goods. This enforcement has included both criminal charges and civil lawsuits under the False Claims Act (FCA).
On August 29, 2025, the Department of Justice (DOJ) announced that it had launched a “cross-agency Trade Fraud Task Force to bring robust enforcement against importers and other parties who seek to defraud the United States.” The Task Force will include representatives from the DOJ’s criminal and civil divisions and the Department of Homeland Security (DHS) who will “aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties.”
The government’s press release states that “trade fraud not only deprives the government of vital revenue used to reinvest in America, but also threatens critical domestic industries, undermines consumer confidence, and weakens national security.”
Trade/customs fraud typically takes one of two forms, or both simultaneously: misclassifying the nature (including type and value) of the imported goods and/or misstating the goods’ origin. Both are unlawful, and both can lead to monetary fines and penalties and even jail time. The DOJ has powerful tools in its arsenal to conduct investigations into possible customs fraud, including issuing search warrants, grand jury and/or administrative subpoenas, and Civil Investigative Demands (CIDs) under the FCA.
If you are facing such an investigation or simply need assistance to ensure compliance, please contact us today.