The U.S. Department of Justice (DOJ) has intensified its focus on enforcing trade and customs laws, particularly targeting companies that attempt to evade tariffs implemented under the Trump administration. This strategic shift involves leveraging the expertise of the DOJ’s Criminal Division, traditionally known for investigating financial fraud, to address violations in international trade.
In a memorandum dated May 12, 2025, the DOJ’s Criminal Division identified “trade and customs fraud, including tariff evasion” as a high-impact area, ranking it second among its enforcement priorities. This move underscores the administration’s commitment to ensuring compliance with U.S. import laws and maintaining a level playing field for domestic industries. The memorandum also announced revisions to the Corporate Whistleblower Awards Pilot Program, adding “trade, tariff, and customs fraud by corporations” as a priority area, thereby incentivizing whistleblowers to report such violations. ([mmmlaw.com](https://www.mmmlaw.com/news-resources/the-department-of-justices-criminal-division-is-now-prioritizing-enforcement-related-to-trade-tariff-and-customs-fraud-implications-for-companies-within-the-supply-chain/?utm_source=openai))
Historically, customs fraud cases were primarily handled by U.S. Customs and Border Protection (CBP) and the DOJ’s Civil Division. However, the current administration’s directive signals a more aggressive approach, with the Criminal Division now taking a leading role in prosecuting these offenses. This shift is evident in the DOJ’s increased use of the False Claims Act (FCA) to address customs violations. The FCA imposes civil liability on entities that knowingly submit false claims to the government, including misrepresentations related to the value, classification, or origin of imported goods. ([wiley.law](https://www.wiley.law/alert-DOJ-Affirms-Aggressive-False-Claims-Act-Enforcement-Highlights-Use-Against-Illegal-Trade-Practices?utm_source=openai))
Deputy Assistant Attorney General Michael Granston emphasized this focus during a keynote address at the Federal Bar Association’s annual qui tam conference in February 2025. He highlighted “illegal foreign trade practices” as a major area for FCA enforcement, stating that the DOJ plans to “continue to use the False Claims Act to enforce these trade laws.” ([millerchevalier.com](https://www.millerchevalier.com/publication/doj-target-trade-violations-under-false-claims-act?utm_source=openai))
To effectively combat tariff evasion, the DOJ is utilizing various criminal statutes, including:
- 18 U.S.C. § 1001: Prohibits making materially false statements to federal agencies, carrying penalties of fines and up to eight years in prison.
- 18 U.S.C. § 541: Criminalizes the entry of goods under false classifications or valuations, with penalties of fines and up to two years in prison.
- 18 U.S.C. § 542: Addresses the entry of goods by means of false statements, also punishable by fines and up to two years in prison.
- 18 U.S.C. § 545: Targets the smuggling of goods into the U.S., with penalties including fines and up to 20 years in prison. ([mmmlaw.com](https://www.mmmlaw.com/news-resources/the-department-of-justices-criminal-division-is-now-prioritizing-enforcement-related-to-trade-tariff-and-customs-fraud-implications-for-companies-within-the-supply-chain/?utm_source=openai))
These enforcement efforts have already led to significant legal actions. For instance, in 2024, a Florida couple was sentenced to 57 months in prison each for orchestrating a scheme to avoid $42 million in duties on Chinese plywood by falsely claiming it was from Malaysia and Sri Lanka. ([dynamisllp.com](https://www.dynamisllp.com/knowledge/tariff-increases-customs-fraud-enforcement-risks?utm_source=openai))
Companies involved in international trade should be aware of the DOJ’s heightened scrutiny and ensure strict compliance with U.S. import laws. This includes accurate reporting of product classifications, valuations, and countries of origin. Implementing robust compliance programs and conducting regular audits can help mitigate the risk of inadvertent violations and demonstrate a commitment to lawful trade practices.
As the DOJ continues to prioritize the enforcement of trade and customs laws, businesses must remain vigilant and proactive in their compliance efforts to avoid potential legal repercussions.
The U.S. Department of Justice (DOJ) has intensified its focus on enforcing trade and customs laws, particularly targeting companies that attempt to evade tariffs implemented under the Trump administration. This strategic shift involves leveraging the expertise of the DOJ’s Criminal Division, traditionally known for investigating financial fraud, to address violations in international trade.
In a memorandum dated May 12, 2025, the DOJ’s Criminal Division identified “trade and customs fraud, including tariff evasion” as a high-impact area, ranking it second among its enforcement priorities. This move underscores the administration’s commitment to ensuring compliance with U.S. import laws and maintaining a level playing field for domestic industries. The memorandum also announced revisions to the Corporate Whistleblower Awards Pilot Program, adding “trade, tariff, and customs fraud by corporations” as a priority area, thereby incentivizing whistleblowers to report such violations. ([mmmlaw.com](https://www.mmmlaw.com/news-resources/the-department-of-justices-criminal-division-is-now-prioritizing-enforcement-related-to-trade-tariff-and-customs-fraud-implications-for-companies-within-the-supply-chain/?utm_source=openai))
Historically, customs fraud cases were primarily handled by U.S. Customs and Border Protection (CBP) and the DOJ’s Civil Division. However, the current administration’s directive signals a more aggressive approach, with the Criminal Division now taking a leading role in prosecuting these offenses. This shift is evident in the DOJ’s increased use of the False Claims Act (FCA) to address customs violations. The FCA imposes civil liability on entities that knowingly submit false claims to the government, including misrepresentations related to the value, classification, or origin of imported goods. ([wiley.law](https://www.wiley.law/alert-DOJ-Affirms-Aggressive-False-Claims-Act-Enforcement-Highlights-Use-Against-Illegal-Trade-Practices?utm_source=openai))
Deputy Assistant Attorney General Michael Granston emphasized this focus during a keynote address at the Federal Bar Association’s annual qui tam conference in February 2025. He highlighted “illegal foreign trade practices” as a major area for FCA enforcement, stating that the DOJ plans to “continue to use the False Claims Act to enforce these trade laws.” ([millerchevalier.com](https://www.millerchevalier.com/publication/doj-target-trade-violations-under-false-claims-act?utm_source=openai))
To effectively combat tariff evasion, the DOJ is utilizing various criminal statutes, including:
- 18 U.S.C. § 1001: Prohibits making materially false statements to federal agencies, carrying penalties of fines and up to eight years in prison.
- 18 U.S.C. § 541: Criminalizes the entry of goods under false classifications or valuations, with penalties of fines and up to two years in prison.
- 18 U.S.C. § 542: Addresses the entry of goods by means of false statements, also punishable by fines and up to two years in prison.
- 18 U.S.C. § 545: Targets the smuggling of goods into the U.S., with penalties including fines and up to 20 years in prison. ([mmmlaw.com](https://www.mmmlaw.com/news-resources/the-department-of-justices-criminal-division-is-now-prioritizing-enforcement-related-to-trade-tariff-and-customs-fraud-implications-for-companies-within-the-supply-chain/?utm_source=openai))
These enforcement efforts have already led to significant legal actions. For instance, in 2024, a Florida couple was sentenced to 57 months in prison each for orchestrating a scheme to avoid $42 million in duties on Chinese plywood by falsely claiming it was from Malaysia and Sri Lanka. ([dynamisllp.com](https://www.dynamisllp.com/knowledge/tariff-increases-customs-fraud-enforcement-risks?utm_source=openai))
Companies involved in international trade should be aware of the DOJ’s heightened scrutiny and ensure strict compliance with U.S. import laws. This includes accurate reporting of product classifications, valuations, and countries of origin. Implementing robust compliance programs and conducting regular audits can help mitigate the risk of inadvertent violations and demonstrate a commitment to lawful trade practices.
As the DOJ continues to prioritize the enforcement of trade and customs laws, businesses must remain vigilant and proactive in their compliance efforts to avoid potential legal repercussions.