Trade Enforcement Has Changed. Is Your Company Prepared?

Trade enforcement in the United States is becoming more aggressive, and the penalties make the warning difficult to ignore. In August 2025, the Department of Justice and Department of Homeland Security launched the Trade Fraud Task Force to investigate tariff evasion, customs fraud, and the illegal importation of goods. On July 14, 2026, less than one year after its creation, the DOJ announced that the Task Force had surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures, and publicly charged losses. U.S. Customs and Border Protection has also assessed more than $2.1 billion in commercial trade penalties and debarred 35 parties from doing business with the federal government during the current fiscal year.

The government is focusing on tariff and duty evasion, including false country of origin claims, misclassification, and undervaluation. Forced labor and imported goods that threaten public health and safety are also priorities. The DOJ has now created the Global Trade and Commerce Enforcement Section to investigate and prosecute trade fraud. Creating a section specifically for this work shows that the government’s attention to trade enforcement is not slowing down. They’re no longer only issuing warnings or collecting routine penalties. It is building a dedicated enforcement system to find, investigate, and prosecute violations throughout the supply chain. The DOJ is also encouraging whistleblowers to report suspected trade fraud, which means companies may not control when a potential issue reaches the government.

One of the most important things for companies to understand is that these investigations can reach every part of the supply chain. Importers, customs brokers, distributors, commercial end users, and other parties that knowingly benefit from illegally imported goods may be investigated. Liability may not stop with the company that filed the customs entry. Importers remain responsible for the information submitted to CBP, even when they use a customs broker. Hiring a broker does not remove the importer’s responsibility to confirm that classifications, values, countries of origin, and duty payments are correct. A shipment being released by CBP is not proof that the entry is compliant. It can still be reviewed later through an audit or investigation.

Not every customs error is fraud, but companies cannot afford to assume an error will be treated as harmless. The DOJ has stated that it will consider whether a company was negligent, ignored warning signs, acted with reckless disregard, or was willfully blind to questionable activity. Once an investigation begins, a company may have to defend years of import transactions, not just one shipment. The consequences can include unpaid duties, seized cargo, financial penalties, increased audits, and reputational damage. More serious cases may lead to False Claims Act liability, criminal charges, forfeiture, or imprisonment.

Waiting for CBP or the DOJ to identify a problem first leaves the company reacting to the government’s timeline. Reviewing import practices now gives companies the opportunity to find weaknesses, correct procedures, and show that reasonable care was used before those decisions are questioned. A compliance review may also uncover overpaid duties, missed savings opportunities, and internal processes that are costing more than they should. The same review that reduces enforcement exposure may also improve the company’s bottom line.

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. If you have questions about tariffs or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com

Contributor: Lynette Cadena

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About Allyn International

Allyn International provides high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit  www.allynintl.com.