The Department of Justice (DOJ) recently launched a cross-agency Trade Fraud Task Force (TFTF). This new initiative, announced on August 29, 2025, in partnership with the Department of Homeland Security (DHS), aims to aggressively pursue enforcement actions against entities that evade tariffs and duties or import prohibited goods into the U.S. economy. For our ecommerce members, many of whom rely on importing products, understanding this evolving landscape is important.
What is the Trade Fraud Task Force
The TFTF is a collaborative effort between the DOJ’s Civil and Criminal Divisions and the DHS, including U.S. Customs and Border Protection (CBP) and Homeland Security Investigations (HSI). Its primary objective is to advance the Trump Administration’s “America First Trade Policy” by ensuring compliance with trade laws, including the payment of all applicable tariffs and duties. This marks a renewed interest from the DOJ in trade fraud enforcement, as outlined in their May 2025 white collar enforcement plan.
Key Areas of Increased Enforcement for Ecommerce Importers
The TFTF introduces several points of increased emphasis that directly impact ecommerce businesses engaged in importing. The TFTF encourages U.S. companies to refer potential offenders and cooperate, recognizing that domestic industries are often best positioned to identify trade fraud. The Task Force will augment existing coordination mechanisms, facilitating greater communication and harmonization among various DOJ and DHS entities for more efficient enforcement.
Historically, many civil trade fraud resolutions stemmed from qui tam whistleblowers or voluntary disclosures. Now, the DOJ aims for a more active role in detecting and prosecuting fraud. The Corporate Whistleblower Awards Pilot Program has been amended to offer awards for information leading to criminal or civil forfeiture exceeding $1,000,000 for “trade, tariff, and customs fraud” by corporations, incentivizing individuals to report such allegations.
Risks of Non-Compliance and Potential Penalties
The TFTF will utilize the False Claims Act (FCA). Violations can lead to triple the government’s damages plus per-violation penalties ranging from $14,308 to $28,619. The FCA applies to knowingly submitting false claims, using false records, or improperly avoiding government payment, including Customs duties, encompassing deliberate ignorance or reckless disregard. The DOJ has already achieved multi-million-dollar settlements in customs evasion cases.
Beyond civil penalties, the DOJ may pursue criminal trade and customs fraud cases under statutes prohibiting smuggling, wire fraud, and false statements.
Importers must continue to pay tariffs imposed under the International Emergency Economic Powers Act (IEEPA), despite a recent Federal Circuit ruling striking them down. The U.S. Supreme Court has granted petitions to review this decision, with arguments set for November 2025. Until a final Supreme Court decision, these tariffs remain in effect, and civil violations can incur significant penalties, up to twice the transaction value, enforced on a strict liability basis.
EIA Recommendations for Members
Given this heightened enforcement environment and complex trade landscape, the EIA urges our members importing products, to conduct thorough audits of current practices to identify and remediate potential gaps in compliance. Monitor all announcements regarding new tariffs and legal challenges and consult counsel to ensure appropriate entry of goods and to leverage beneficial customs programs.
We also recommend that members develop or strengthen corporate compliance programs. The DOJ has indicated a willingness to mitigate penalties for companies with effective compliance programs that are well-designed, adequately resourced, and work in practice. Finally, implement a trusted mechanism for employees to report allegations of impropriety anonymously.
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