Key Takeaways

• The Department of Justice (DOJ) launches a new “Trade Fraud Task Force” with the Department of Homeland Securityto aggressively pursue enforcement actions against those who seek to evade tariffs and duties — including under the broad reach of the False Claims Act (FCA).
• This follows the DOJ’s recent settlements of evasion cases brought under the FCA involving multi-layered wood flooring, plastic resin, extruded aluminum products and quartz surface products.
• The U.S. Court of Appeals for the Ninth Circuit recently held that the FCA’s “sweeping scope” does not carve out Customs duties, affirming that the DOJ can ensure compliance with trade laws outside the traditional trade enforcement scheme.
• Importers should reassess their Customs compliance programs amid increased FCA enforcement and growing exposure to civil and criminal penalties.

Under U.S. law, U.S. importers are responsible for accurate and complete reporting, including in their classification and valuation of goods to Customs. That compliance burden has already become increasingly complex amid the Trump Administration’s new country-specific reciprocal tariffs and national security duties — currently imposed on steel, aluminum, and copper and their derivative products, as well as automobiles and auto parts — with potentially more trade measures on the horizon. Now, importers must also contend with heightened enforcement risk.

DOJ Ramps Up Trade Enforcement with FCA and Task Force

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