In a significant move that underscores the United States’ tightening grip on trade compliance, the U.S. Department of Justice (DOJ) has announced the formation of a dedicated unit focused on prosecuting customs fraud, including transshipment, misclassification, and systematic undervaluation of goods.
This initiative comes just days before former President Donald Trump is expected to implement a new round of global tariffs starting August 1, should he return to office. The new DOJ unit marks a shift in enforcement strategy—from civil penalties and negotiated settlements to criminal prosecutions for companies and individuals attempting to evade U.S. import duties.
What Does This Mean for Importers and Exporters?
The DOJ's intensified enforcement signals a warning to global traders: any attempt to bypass U.S. customs law could now result in criminal charges. Historically, customs violations were resolved through fines or administrative action. But going forward, actions such as:
- Concealing the true country of origin (via transshipment)
- Providing false Harmonized Tariff Schedule (HTS) classifications
- Understating declared customs values
- Misrepresenting buyer-seller relationships
…may all trigger criminal investigations and prosecutions.
Increased Scrutiny from U.S. Customs and Border Protection (CBP)
In recent weeks, several importers have reported receiving targeted trade data requests from CBP. These requests focus on product classification, valuation methodology, and the nature of commercial relationships between importers and foreign suppliers.
CBP has also increased scrutiny on companies heavily affected by Trump-era and proposed tariffs—particularly in steel, aluminum, textiles, and consumer goods.
Government Collaboration and Data Collection
The DOJ’s new unit will work closely with CBP and Homeland Security Investigations (HSI) to identify high-risk cases. U.S. attorneys have already begun requesting access to customs records, logistics data, and communications dating back to both the Biden administration and the current campaign period. These reviews aim to uncover patterns of systemic fraud and improper duty avoidance.
DOJ official Matthew Galetti made the department’s position clear:
“Severe trade fraud—such as systematic undervaluation or falsified country of origin—will now trigger criminal proceedings due to the intentional avoidance of import costs.”
Why This Matters
The U.S. government estimates that customs fraud results in billions of dollars in annual revenue losses. With a dedicated financial crime team now in place, the DOJ is signaling its intent to treat tariff evasion as a serious economic offense.
For international traders, manufacturers, and supply chain managers, this development is a timely reminder to:
- Review import documentation and valuation practices
- Audit supplier declarations and certificates of origin
- Ensure internal compliance systems are up to date
- Avoid reliance on risky or informal trade arrangements
Final Thoughts
As the global trade environment becomes more complex and politically charged, compliance is no longer optional—it is a strategic necessity. Companies engaged in U.S. imports should act now to strengthen their customs procedures and ensure alignment with all applicable regulations.
If you’re seeking professional guidance on tariff classification, origin determination, or trade documentation, feel free to contact our compliance team.
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