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Three Enforcement Actions, One Message: Trade Violations Are Serious Crimes 

Learn more about this topic in our upcoming webinar: From Error to Action: Filing a Prior Disclosure with CBP 

As tariffs climb and global trade becomes more complex, a growing number of importers are testing the limits, or outright breaking the law, to reduce or avoid duty payments and other compliance costs. U.S. enforcement agencies, including Customs and Border Protection (CBP) and the Department of Justice (DOJ), have made it clear that customs fraud will not be tolerated and is a top enforcement priority. Three recent cases illustrate the new reality for enforcement. 

1. Undervaluation and the False Claims Act: $2.1 Million Settlement

An importer of fitness equipment agreed to pay $2.1 million to resolve allegations under the False Claims Act that it knowingly undervalued imported goods. 

According to the government, the company knowingly declared artificially low values on its imports in order to reduce tariff obligations. The company also failed to include the cost of computer tablets incorporated into packaged equipment.  

The settlement also resolves a qui tam False Claims Act case brought by a whistleblower, Mr. Greg Dahlstrom. Dahlstrom will receive $420,000 of the proceeds from the settlement. 

2. Importing Precursor Chemicals: Possible Life Sentence

On April 27, 2026, the United States Attorney for the Southern District of New York announced the unsealing of an indictment charging two Chinese nationals with importing a methamphetamine precursor chemical into the United States with the intent […]

By |2026-05-02T10:01:13-04:00May 2, 2026|Enforcement|Comments Off on Three Enforcement Actions, One Message: Trade Violations Are Serious Crimes 
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Compliance Mistakes Can Turn Criminal: Don’t Let This Happen to You

Many importers assume that customs compliance issues are purely administrative and can be easily resolved. In reality, customs law and criminal law intersect far more often than most companies realize. What begins as a civil customs matter can escalate quickly into a criminal investigation when regulators suspect fraud, evasion, or willful misconduct.

When Customs Issues Cross the Line

Most customs violations start as a civil enforcement matter. Errors involving classification, valuation, country of origin, or admissibility are often addressed through a request for information (CBP 28), notice of action (CBP 29), protest, prior disclosure, or penalty proceeding. However, when patterns emerge or when agencies believe false statements or deliberate schemes are involved, the enforcement posture can change dramatically.

Federal agencies, including U.S. Customs and Border Protection (CBP), Homeland Security Investigations (HSI), and the Department of Justice (DOJ), routinely collaborate to investigate potential criminal violations tied to import activity. These investigations may focus on:

  • Undervaluation or misclassification to avoid duties
  • False statements or omissions in entry documentation
  • Evasion of import restrictions or regulatory requirements
  • Coordinated schemes involving suppliers, brokers, or intermediaries

Once criminal intent is suspected, importers may face subpoenas, search warrants, asset seizures, or even criminal charges.

Increased Focus on Enforcement

The recent volatile tariff environment has created increased incentives to cheat the system. The U.S. government has made clear that it is

By |2026-01-30T10:24:53-05:00January 30, 2026|Enforcement, Import, International Trade, U.S. Customs and Border Protection (CBP), U.S. Department of Justice (DOJ)|Comments Off on Compliance Mistakes Can Turn Criminal: Don’t Let This Happen to You
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