Trade Fraud Task Force Agency

The US Department of Justice and Homeland security have partnered together to create the Trade Fraud Task force Agency, a cross-agency partnership with a focus on insuring importers are following the new regulations set forth in the Trump administrations America First Trade Policy.

Background
The Trump administration issued the America First Trade policy, one of the presidents first acts singed on inauguration day. The America first Trade policy is aimed to correct trade imbalances, and to safeguard and protect American manufacturing and industries. With this policy and using different trade remedies or Emergency Acts, such as Section 232 and IEEPA, the Trump administration has enforced tariffs that have resulted in billions of dollars paid by importers to US Customs and Border Protection.
This new Agency is established with the goal to promote compliance with the America First Trade Policy, and to ensure that importers are not defrauding the government by under reporting or fraudulently reporting duties, country of origin, or other important customs metrics involved in determining customs duty. This new agency is granted authority to penalize violators under the Tariff Act of 1930, which allows the new agency to impose civil or criminal investigations on importers who are suspected of trade fraud.

The agency will target importers that appear to be underreporting the value of their goods, reporting improper primary and provisional HTS codes, or participating in tariff aversion schemes that are deemed to be unlawful.

What does this mean for Importers?

Importers are urged to establish a robust compliance program, with the goal of ensuring the use of correct HTS for their imports, the correct value of imported items are provided, and the correct country of origin is reported. Understanding materials, cost, country of origin, tariff stacking and tariff application are important in adhering to these orders and keeping their businesses out of the potential for fraud, intentional or not.

• Proper HTS classification of imported items is the starting point to a compliant import program.
•  Understanding Tariff Stacking, the method by which CBP requires multiple trade remedies to be reported and applied to any item on an entry. The order of tariff stacking was determined by CBP and has a complex methodology of what applies to a single item and what does not.
• Collaborating with suppliers to make sure they are providing you with the correct details such as material cost needed to determine which trade remedy imported items are subject to, and which countries of origin are applicable.
• Auditing entries is critical. An entry audit of your items will catch improper use or misreporting of trade remedies.
• Ensuring you have trained individuals who can identify compliance gaps and understand how to correct, report and amend these gaps.

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. Whether you have questions about tariffs, trade agreements, 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, call 239-489-9900, or reach out here.

Contributor: George Ciaffone

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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 and Prague, Czech Republic. For more information, visit www.allynintl.com