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What You Need to Know
- Key takeaway #1
Customs and Trade Fraud is a DOJ Priority
The new Trade Fraud Task Force underscores DOJ's recently enhanced focus on customs enforcement. Earlier this year, DOJ identified trade fraud as top enforcement priority, and announced a restructuring of its Fraud section as part of its efforts to focus more enforcement resources in this area. - Key takeaway #2
DOJ and DHS are Increasing Coordinated Enforcement Against Trade Fraud
The newly announced Trade Fraud Task Force will aggressively target importers and other parties committing tariff evasion, using expanded coordination under the wide array of existing enforcement powers under multiple statutes (Tariff Act, False Claims Act, Title 18). - Key takeaway #3
Importers Should Review and Strengthen Compliance Programs
Given DOJ and DHS's ramped-up enforcement, importers should proactively review their classification, valuation, and origin determinations, maintain proper documentation, conduct supply chain audits, and implement robust customs compliance policies and procedures. When compliance issues are identified, importers should carefully consider available mechanisms to disclose such issues to the relevant enforcement authorities.
On August 29, 2025, the Department of Justice (DOJ) and the Department of Homeland Security (DHS) launched a cross-agency Trade Fraud Task Force to expand efforts to target importers and other parties committing trade-related fraud. As stated in a press release issued on August 29, the Task Force will augment the existing coordination mechanisms within the DOJ and DHS, for instance through partnerships with CBP and Homeland Security Investigations, to "aggressively" take enforcement measures against parties that commit tariff evasion or attempt to smuggle prohibited goods into the U.S.
As stated in the press release, these enforcement measures include duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act (FCA), and criminal prosecutions, penalties, and seizures under Title 18's trade fraud and conspiracy provisions.
The launch of this Task Force is in line with DOJ's recent prioritization of its customs enforcement resources. Earlier this year, the DOJ identified prosecuting trade and customs fraud—including tariff evasion—as a high-impact area of priority. Additionally, in July, DOJ indicated it would be restructuring its Fraud Section to create a new Market, Government, and Consumer Fraud Unit (MGCF). The focus of the MGCF unit will include the identification and prosecution of trade fraud related to misclassification, valuation errors, and incorrect country of origin marking, including transshipment.
Importers should be aware of DOJ's continued efforts to ramp up its prosecution of trade and customs fraud, and should take steps to ensure compliance. This includes reviewing classification, valuation, and country of origin determinations; maintaining proper entry records and supporting documentation; conducting supply chain audits; and implementing associated policies and procedures. When importers identify compliance issues, they should carefully consider options to disclose such issues to the relevant enforcement authorities.
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