On August 29, 2025, the U.S. Departments of Justice (DOJ) and Homeland Security (DHS) announced the creation of a new cross-agency Trade Fraud Task Force “to bring robust enforcement against importers and other parties who seek to defraud the United States.”
As noted in our prior client alert, DOJ is strategically shifting resources to place tariff enforcement at the forefront of its agenda, with an increased emphasis on criminal prosecutions. This new task force builds on these developments. As the acting head of the DOJ’s Criminal Division stated in announcing the task force:
“The Criminal Division, led by the Fraud Section, is committed to using every available tool to hold bad actors accountable and prevent the theft of money intended to reduce the deficit and fund government programs.”
Trade Fraud Task Force Overview
- Enhanced Interagency Collaboration. According to the announcement, DHS, through U.S. Customs and Border Protection (CBP), will partner closely with DOJ to identify and prosecute customs violations. The task force will streamline coordination and improve data sharing across agencies.
- Legal Framework. The task force will pursue duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act and, where appropriate, initiate parallel criminal prosecutions under Title 18’s trade fraud and conspiracy provisions.
- Whistleblower Engagement. The announcement explicitly encourages whistleblowers to make reports to the Criminal Division’s Corporate Whistleblower Program or to utilize the qui tam provisions of the False Claims Act. Notably, it also “welcomes referrals and cooperation from the domestic industries that are most harmed by unfair trade practices and trade fraud.”
Key Takeaways
The announcement of this task force underscores the mounting risk for importers as DOJ intensifies its focus on trade fraud enforcement.
With global tariff regimes evolving and supply chains adjusting accordingly, companies should anticipate heightened investigative and enforcement activity focused on ensuring compliance with international trade laws and regulations. Importers should carefully consider their risks in this area, including validating classifications, country of origin, valuations, record keeping requirements and procedures, as well as the accuracy of representations made to key counterparties, such as freight forwarders, insurers and financial institutions.
Recent federal government statements pointing to increased enforcement and expanded staffing of investigators and prosecutors focused on trade fraud are strong indicators that increased enforcement activity will materialize in the near future. Companies should monitor these trends closely and update their risk assessments and supply chain audits accordingly.
