New DOJ Trade Fraud Task Force: Heightened Investigation and Prosecution of Tariff Evasion, Customs Regs

To implement and enforce the current administration's "America First Trade Policy" and Executive Order 14243, DOJ is prioritizing identifying and pursuing companies or individuals who engage in misclassification of goods, transshipments designed to evade tariffs, the circumvention of duties, drawback abuse, and smuggling of prohibited or counterfeit goods. Historically, several federal agencies shared responsibility for enforcing customs regulations, including the DOJ, CBP, and Homeland Security Investigations within DHS. The new Task Force is a single, centralized entity that combines and centralizes the power and capabilities of these disparate entities under one head with the goal of increasing power and efficiency. 

The government has numerous and traditional statutory enforcement tools at its disposal, such as penalties under the Tariff Act of 1930, and criminal prosecutions, penalties, and seizures under Title 18's trade fraud and conspiracy provisions. But in a new development, the tool of choice appears to be the False Claims Act (FCA), which can result in heavy civil fines and treble damages and authorized qui tam actions.

Whatever enforcement route is taken, the government has signaled that it intends to seek maximum prosecution without consideration of mitigating factors. Counsel advising companies engaged in international trade need to understand both the risks of government civil and criminal enforcement, as well as the risk of whistleblower lawsuits under the FCA. 

Listen as our experienced panel reviews the investigation and prosecution of customs and trade fraud through DOJ enforcement, CBP enforcement, and then discusses new developments under the new cross-agency Trade Fraud Task Force.