September 8, 2025
The Department of Justice (DOJ) announced the launch of the Trade Fraud Task Force to combat customs fraud and strengthen U.S. trade enforcement. This task force brings together the DOJ’s Civil and Criminal Divisions with the Department of Homeland Security. The task force will aggressively pursue importers and other parties who attempt to evade tariffs, duties, or smuggle prohibited goods. The initiative protects honest American businesses by aggressively targeting illegal activity, while ensuring critical revenue is collected for reinvestment in the economy.
Customs fraud has far-reaching consequences. Importers who avoid paying tariffs or duties undermine lawful competitors by introducing below-cost goods into the market. These fraudulent practices strip the government of revenue, weaken consumer trust, and destabilize industries that employ millions of Americans. The effects are not only economic. Fraudulent trade schemes can also be backed by adversarial nations, posing risks to national security.
A key component of the government’s fight against customs fraud is the federal False Claims Act. This powerful tool allows whistleblowers to report trade and customs fraud on the government’s behalf. Specifically, the qui tam provision of the False Claims Act (FCA) permits private individuals to bring claims on behalf of the government against individuals and entities defrauding government agencies. As an incentive, successful whistleblowers share in the government’s recovery of damages and penalties from violators. The FCA works in tandem with criminal prosecutions under Title 18, ensuring that fraudsters face both financial liability and potential criminal penalties. This dual approach strengthens enforcement and deters future violations.
The Trade Fraud Task Force coordinates closely with U.S. Customs and Border Protection and Homeland Security Investigations. By combining investigative resources, trade expertise, and enforcement authority, the task force aims to deliver stronger outcomes, including higher recoveries, more prosecutions, and greater deterrence against customs fraud.
The expansion of the Trade Fraud Task Force signals a decisive commitment to safeguarding American industries and workers. Through coordinated enforcement, whistleblower protections, and the False Claims Act, the DOJ is sending a clear message that customs fraud will not be tolerated. These efforts ensure fair competition, protect national security, and hold violators accountable for undermining U.S. trade laws.
If you believe that an individual or entity is committing customs fraud, contact us for a confidential and free consultation to discuss your options under the False Claims Act and other whistleblower programs.