On August 29, the Department of Justice (DOJ) announced the new Trade Fraud Task Force focused on robust enforcement of import laws and regulations. A partnership between the DOJ Civil and Criminal Divisions and the Department of Homeland Security (DHS), the Task Force is intended to aggressively pursue enforcement actions against importers and other entities that attempt to evade duties or import prohibited items. The Task Force’s mission is to pursue violations through “duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act (FCA), and, wherever appropriate, parallel criminal prosecutions, penalties, and seizures under Title 18’s trade fraud and conspiracy provisions.”
The establishment of the Task Force follows the Trump administration’s aggressive imposition of new tariffs over the course of 2025. DOJ’s announcement signals that the administration will prioritize enforcement efforts aimed at preventing unlawful strategies to avoid these significant new tariffs and that the administration will make full use of all enforcement mechanisms at its disposal.
The Task Force further highlights the administration’s increased emphasis on the FCA as an enforcement tool aimed at advancing the administration’s policy goals. The FCA prohibits the submission of false or fraudulent claims for payment to the Government, and it also provides for liability when false information is submitted to the Government in order to avoid paying the Government money that would otherwise be owed – frequently called "reverse" false claims. The FCA provides for treble compensatory damages in addition to statutory penalties, and it contains among the most robust whistleblower provisions afforded by federal law, allowing private plaintiffs who bring actions alleging fraud against the Government to keep a portion of the Government’s recovery. The FCA’s whistleblower provisions provide significant financial incentives for employees, competitors, and others to expose unlawful import practices. The Trump administration has consistently looked for opportunities to leverage the FCA’s enforcement and whistleblowing provisions in new areas, and it is likely to be a powerful tool to advance the administration’s tariff and trade policies.
The establishment of the Task Force highlights how trade compliance has become a high-stakes matter for importers. In a high-tariff environment, customs penalties and FCA liability can quickly balloon. Proactive examination of import practices—including customs classification, valuation, and country-of-origin claims—to ensure compliance may help companies avoid later significant problems.
