The U.S. Department of Justice (DOJ) and U.S. Customs and Border Protection (CBP) are cracking down on tariff evasion. The DOJ has expressly stated that exposing and prosecuting tariff evasion schemes is among its top enforcement priorities—and that it will be pursuing criminal enforcement under the False Claims Act. It has also made clear that it intends to target importers, customs brokers, freight forwarders, logistics providers, and other companies in the United States. Crucially, while the DOJ’s efforts are focused on achieving the goals outlined by the current Trump Administration—including enforcement of its new tariff rates—in recent cases the DOJ has targeted alleged tariff violations dating back to the first Trump Administration as well.
With this in mind, companies that are subject to tariff compliance need to prioritize compliance going forward. Allegations of tariff fraud or customs evasion resulting from criminal investigations can expose companies (and their owners and senior executives) to substantial penalties. Companies engaged in illicit schemes to evade customs duties are at high risk for facing scrutiny from the DOJ and other enforcement authorities—and this scrutiny has the potential to lead to both criminal liability and federal incarceration.
“The US government is prioritizing its efforts to target companies and individuals that evade tariffs during the second Trump Administration. While much of its emphasis is on targeting Chinese imports and imports from other high tariff countries, the DOJ has specifically stated that it is targeting companies in the United States. Along with government-initiated trade-related investigations, the DOJ is also pursuing (and encouraging) whistleblower complaints from former employees and other parties.” – Dr. Nick Oberheiden, Founding Attorney of Oberheiden P.C.
So, what do importers, customs brokers, freight forwarders, logistics providers, and other companies need to know about the DOJ’s ongoing tariff enforcement efforts? Here are 10 key facts for companies that are at risk of facing allegations of customs violations, trade fraud and other trade-related crimes:
1. Targeting Tariff Evasion is a Top Priority for the DOJ
In a May 12, 2025 internal memo, Matthew Galeotti, Head of the DOJ’s Criminal Division, stated that “[t]rade, tariff, and customs fraud by corporations” is a “priority area of focus” for the Criminal Division at this time. The internal memo specifically links this focus to the Trump Administration’s efforts to target entities and individuals who, “undermine the Administration’s efforts to create jobs and increase investment in the United States.”
Galeotti reiterated this sentiment during a presentation to the Securities Industry and Financial Markets Association (SIFMA); and, since then, we have seen the DOJ target alleged tariff evaders across the United States.
2. The DOJ is Targeting All Types of Alleged Tariff Evasion Schemes
Currently, the DOJ appears to be targeting all types of alleged tariff evasion schemes. This includes, but is by no means limited to, alleged schemes involving countervailing duties and antidumping duties, as well as the Trump Administration’s reciprocal tariffs and tariffs that predate the current Administration. Some examples of potential allegations in criminal investigations include:
- Misrepresenting goods’ country of origin (including Chinese origin goods)
- Routing shipments through third countries to access lower tariffs (transshipment schemes)
- False customs declarations and other false statements
- Double-invoicing schemes
- Valuation schemes and other evasion tactics designed to avoid duties
- Other forms of trade and customs fraud under U.S. tariff regulations and customs laws
- Tax evasion related to failure to pay import duties (duties are considered a form of tax)
Again, these are just examples. Ultimately, any underpayment of tariffs or failure to pay import duties when required has the potential to expose companies (and their owners and senior executives) to criminal allegations. As a result, it is critical that companies take the necessary steps not only to remain compliant, but to ensure that they can demonstrate compliance when necessary.
3. Allegations of Tariff Evasion Can Lead to Criminal Prosecution Under the False Claims Act
The Department of Justice is currently pursuing tariff evasion cases under the False Claims Act. Federal prosecutors can pursue both civil and criminal charges under the False Claims Act—with criminal charges carrying both substantial fines and prison time. The False Claims Act is among the most potent weapons in the DOJ’s law enforcement arsenal; and, by relying on the False Claims Act in connection with its tariff enforcement efforts, it has broad flexibility to tailor charges to the specific circumstances of each individual case.
4. Importers, Freight Forwarders, and Others Need to Prioritize Tariff and Customs Compliance
In light of the DOJ’s prioritization of tariff evasion and other forms of customs fraud, companies that have tariff-related obligations (i.e., importers, customs brokers, freight forwarders, and logistics providers), need to prioritize compliance in this area. Among other things, this should involve:
Developing Custom-Tailored Customs Compliance Programs
All companies that have tariff-related obligations need to develop custom-tailored customs compliance programs. These compliance programs should address all applicable tariff rates and categories, and they should be designed to ensure that companies can consistently pay customs duties accurately and in a timely manner.
Assigning Compliance Teams to Oversee Tariff-Related Operations
Given the importance of accurately paying customs duties when due, companies should assign compliance teams to oversee their tariff-related operations. These teams should not only proactively manage internal tariff compliance, but also carefully examine companies’ tariff payments retrospectively so that they can address any violations promptly if necessary.
Promptly Acknowledging and Addressing Tariff Violations
When companies unintentionally engage in tariff evasion or tax evasion, promptly acknowledging and addressing the violation can be critical for avoiding unnecessary consequences. What this entails will depend on the specific circumstances involved; and, here, companies’ compliance teams should work with outside counsel to ensure that they are making sound decisions under the circumstances at hand.
5. Importers, Freight Forwarders, and Others Need to Be Prepared for DOJ Scrutiny
With the DOJ specifically prioritizing “[t]rade, tariff, and customs fraud by corporations,” it is clear that importers, customs brokers, freight forwarders, logistics providers, and others all need to be prepared for the possibility of facing tariff-related scrutiny. In cases involving customs trade partnerships, joint ventures, and other types of multi-company operations, all parties involved can potentially face investigations, prosecution, and criminal penalties as “co-conspirators” in evading duties in violation of federal law.
6. The DOJ Has Extensive Enforcement Tools and Resources at Its Disposal
The Department of Justice is devoting substantial resources to its efforts to enforce tariff compliance. In July, the DOJ announced that it was forming a new Market, Government, and Consumer Fraud Unit (MGCF Unit) within the Criminal Division’s Fraud Section. This MGCF Unit is leveraging resources from across the Department, and it is using its subpoena authority and other powers to conduct sweeping, aggressive, and high-risk investigations.
7. The DOJ is Working Alongside CBP and Other Federal Authorities to Uncover Efforts to Evade Tariffs
Along with leveraging its own resources, the DOJ is also working alongside Customs and Border Protection and other federal authorities to uncover efforts to evade tariffs. These multi-agency investigations can move extremely quickly, and they can present extreme risks for entities and individuals who may have committed customs fraud or other criminal violations in international trade.
8. Past Tariff Violations Can Still Lead to Criminal Charges
As noted above, the DOJ is not solely targeting violations committed during the current Trump Administration. It is targeting past violations as well. For example, the DOJ recently announced that it has filed a complaint against a furniture importer in South Carolina accused of underpaying customs duties between 2019 and 2023.
9. Both Nonpayment and Underpayment of High Tariff Rates Can Lead to “False Claims” Allegations
With its enforcement efforts, the DOJ is targeting both nonpayment and underpayment of high tariffs. Nonpayment and underpayment can both lead to allegations of submitting “false claims” to the federal government—as well as allegations of tax evasion and other federal crimes. Once again, a comprehensive approach to compliance is essential, and companies that are facing scrutiny from the DOJ must be prepared to demonstrate that they have paid all appropriate tariff rates should they need to do so.
10. Responding to Allegations of Tariff or Customs Fraud Requires a Proactive and Strategic Defense
As all of this hopefully makes clear, responding to allegations of tariff or customs fraud requires a proactive and strategic defense. Under the current Administration, the DOJ does not take tariff violations lightly—to the contrary, it has shifted its practice from imposing civil fines in most cases to pursuing criminal charges under the False Claims Act and other applicable laws. This presents substantial risks for both companies and individuals, and this means that targeted companies and individuals must be prepared to defend themselves by all means available.
Presenting a proactive and strategic defense in this scenario starts with engaging legal counsel. Due to the unique nature of tariff enforcement, targeted companies and individuals should choose counsel with specific experience in these high-stakes matters. While the DOJ is aggressively pursuing enforcement, with the right approach, it may be possible to resolve a tariff-related investigation without formal charges being filed. With that said, every case is unique; and, if the DOJ decides to pursue prosecution, fighting to avoid a conviction in federal court may be the only viable solution.
