What Every Multinational Should Know About … The DOJ Escalation of Customs and Tariff Enforcement

Three recent developments point to a marked escalation in U.S. customs and trade enforcement. The Department of Justice (DOJ) and Department of Homeland Security’s (DHS) Trade Fraud Task Force has reported more than $1 billion in recoveries, penalties, forfeitures, and charged losses in less than a year, demonstrating that the government is already deploying existing enforcement tools with greater intensity. Building on that momentum, the July 14, 2026, DOJ press release also announced the creation of a Global Trade & Commerce Enforcement Section within its National Fraud Enforcement Division, adding permanent prosecutorial capacity in this area. DOJ and DHS have also issued a Resource Guide to Trade Fraud Enforcement (the Trade Enforcement Guide), which sets out the government’s trade fraud framework, identifies the principal investigative and prosecutorial tools now being used, and signals the compliance expectations likely to define the next phase of enforcement.

Taken together, these developments reflect a clear progression: first, the more aggressive use of existing enforcement mechanisms; second, the expansion of specialized enforcement capacity; and third, a more explicit statement of the government’s trade priorities and expectations. The message for importers and other supply-chain participants is direct. Customs non-compliance — at least for the most serious cases involving significant revenue loss to the Treasury — is no longer being treated mostly as an administrative matter to be managed through administrative penalty procedures. Instead, the U.S. government is increasingly treating tariff evasion, origin fraud, forced labor-related violations, and unsafe or non-compliant imports as matters to be dealt with using civil fraud and criminal exposure tools.

Importers should take that message seriously. This is a moment to test whether existing customs controls are genuinely fit for a more prosecutorial era. To help importers do that, this article examines these developments, explains why they matter, and highlights practical compliance steps businesses should take now to strengthen their trade controls given the new enforcement realities.

First Came Increased Enforcement…

The Trade Fraud Task Force’s first-year results are notable not just for their size but for what they show: tariff evasion has become a major enforcement priority. DOJ and DHS reported more than $1 billion in recoveries and enforcement-related outcomes in less than a year, signaling a shift away from treating customs violations as routine administrative issues and toward more aggressive use of fraud-based enforcement tools.

That shift matters because the government is increasingly using the False Claims Act (FCA), criminal fraud statutes, forfeiture, and other authorities to pursue trade-related misconduct. As a result, conduct once viewed as a technical customs error may now be treated as a false statement, duty evasion scheme, or unlawful importation.

The broader takeaway is that the government has already been building cases, coordinating across agencies, and applying these tools more systematically. For importers, the July 2026 announcements did not start this trend — they confirmed and accelerated it.

Now the DOJ Is Institutionalizing a Harder-Edged Approach…

The creation of the Global Trade & Commerce Enforcement Section is best understood against that backdrop, as it represents the institutionalization of a more prosecutorial model of customs and trade enforcement that was already emerging.

According to the DOJ, the section will investigate and prosecute criminal import, trade, and related fraud offences that:

• undermine American industries;
• evade external revenue collection;
• threaten consumer health and safety;
• finance foreign adversaries;
• promote forced labor through illegal trade practices; or
• violate US laws governing domestic and foreign commerce.

That formulation confirms that the government is not limiting its focus to duty underpayments in the narrow sense and instead is linking it to national security, forced labor enforcement, consumer protection, and supply-chain integrity. It also suggests the government’s attention will not stop with the importer of record. The DOJ’s framing points toward scrutiny of the wider commercial chain, including suppliers, customs brokers, distributors, resellers, and other parties that may have known of, facilitated, or deliberately ignored unlawful import practices.

A new enforcement section can develop concentrated expertise, coordinate more efficiently with DHS and other agencies, and generate a more consistent pipeline of cases. For importers and companies that rely on imports, that means trade fraud risk is less likely to depend on isolated investigations or changing enforcement priorities and more likely to become a regular and sustained feature of the enforcement landscape.

And Now the Trade Enforcement Guide Signals Where Enforcement Is Headed Next

If the Task Force’s results show that customs and tariff enforcement is already intensifying, and the new DOJ section shows that the government is expanding its capacity to pursue such cases, the new Trade Enforcement Guide (the Guide) provides the clearest indication of where enforcement is likely to focus next.

Although presented as a general resource for enterprises of different sizes, the Trade Enforcement Guide is also usefully read as an enforcement roadmap. It explains the government’s approach to trade fraud, describes the principal investigative and prosecutorial tools available to it, and highlights the conduct areas most likely to attract scrutiny. In that sense, it not only informs companies of the rules; it also reveals the factual patterns and compliance failures the government increasingly associates with fraud, evasion, and knowing misconduct.

The Trade Enforcement Guide’s discussion of risk areas, particularly in chapters 4 and 5, points to several priority categories:

• Misclassification. Tariff classification remains a core customs risk because errors can reduce duties, avoid Section 232 or 301 tariffs, evade anti-dumping and countervailing duty (AD/CVD) orders, or affect admissibility and partner agency requirements. The Guide suggests Customs and Border Protection (CBP) may increasingly treat weak or unsupported classifications as potential evidence of evasion or false statements, not just technical disputes.
• Undervaluation, assists, and valuation omissions. Customs valuation remains a major focus, including not only straightforward undervaluation but also omissions from transaction value, such as assists, royalties, license fees, proceeds, and side payments. These issues often arise when customs lacks visibility into arrangements handled by procurement, finance, engineering, tax, or product teams, making valuation errors a sign of broader control failures or intentional duty minimization.
• False origin declarations and transshipment. The Guide emphasizes origin risk alongside transshipment, relabeling, false manufacturer information, and other efforts to hide the true source of goods. Because these tactics can evade tariffs, AD/CVD orders, forced labor restrictions, and other controls, importers are expected to go beyond supplier certifications and apply origin rules carefully.
• Section 301 and AD/CVD evasion. Evasion of Section 301 duties and antidumping/countervailing duties remains a high priority. Because these measures create strong incentives for misclassification, undervaluation, origin manipulation, and routing schemes, entries involving trade remedies are likely to face heightened scrutiny.
• Forced labor and prohibited goods. The Guide links customs enforcement to broader supply-chain integrity issues, including forced labor. False statements about sourcing, manufacturers, origin, or production conditions may support broader trade fraud theories, creating not only detention or exclusion risk but also civil and criminal exposure.
• Unsafe imports, consumer protection, and partner agency requirements. The Guide also ties trade fraud enforcement more closely to imports that threaten health and safety or violate partner government agency rules. Inaccurate customs declarations may matter not just because they reduce revenue, but because they conceal defects, bypass testing or certification, or facilitate entry of goods that should have been detained or refused.
• Downstream knowledge and supply-chain participation. Enforcement risk is not limited to the importer of record. The Guide suggests scrutiny may extend to brokers, distributors, resellers, consignees, end-users, and related entities that knew, suspected, or ignored that goods were imported unlawfully.

Taken together, these topics identify the government’s main trade fraud priorities: classification, valuation, assists, origin, tariff evasion, AD/CVD exposure, forced labor, unsafe imports, and knowing participation across the supply chain. Businesses should ensure these areas have the strongest compliance controls, documentation, and escalation processes.

Why These Developments Signal Increasing DOJ False Claims Act and Criminal Prosecution, Not Only Enhanced Customs Oversight

Before turning to the DOJ’s new role, it is worth emphasizing what has not changed. U.S. Customs and Border Protection’s administrative enforcement regime remains a core feature of U.S. customs enforcement and continues to generate substantial recoveries (in the billions of dollars) each year through audits, post-entry reviews, civil penalty actions and investigations, prior disclosures, and ordinary duty collection mechanisms. That regime is also designed to encourage importers to come forward when problems are identified. A valid prior disclosure can reduce penalty exposure and provide a compelling argument for resolution of an administrative-only matter because the DOJ’s role would be piling onto CBP’s enforcement, contrary to DOJ policy reflected in the Justice Manual 1-12.100. In that sense, CBP’s administrative system remains both a revenue collection tool and a compliance incentive. It is not being displaced, and it remains one of the government’s most important enforcement mechanisms.

What has evolved is that the DOJ is now building a more formal fraud and prosecution layer on top of administrative structure. Increasingly, errors or unpaid penalties assessed by CBP may also be assessed through an additional lens: whether it reflects a knowingly false declaration, a fraudulent scheme to evade duties or restrictions, or conduct serious enough to support civil fraud claims or criminal charges. That shift matters because it expands consequences facing importers and others in the supply chain.

The new enforcement direction indicates the government is increasingly prepared to ask tough questions about the seriousness of any underpayments: whether the company knew the declaration was unsupported; whether red flags were ignored; whether commercially significant inaccuracies were repeated over time; and whether multiple actors across the supply chain participated in or benefited from the scheme.

That is where False Claims Act and criminal exposure become more significant. In the customs context, the government may seek to characterize the underpayment of duties as a false claim or false statement to the government, particularly where inaccuracies are alleged to have been deliberate or even reckless. Criminal theories may become relevant where the facts suggest intentional concealment, falsified documents, sham routing, false manufacturer information, or coordinated conduct designed to evade duties or import restrictions. The distinction between negligence and fraud therefore becomes operationally important: weak controls, poor escalation, and untested supplier claims may no longer be viewed as compliance shortcomings if they are seen as evidence that a company disregarded obvious risks. This risk is especially heightened under the False Claims Act because it permits not only government enforcement actions but also qui tam actions filed by private individuals who can recover a share of the penalties.

The Trade Enforcement Guide’s discussion of investigative tools, cooperation, voluntary disclosure, and qui tam relator mechanisms reinforces that point. The government appears to be encouraging earlier internal escalation and remediation by making clear that companies may face a more serious set of consequences if concerns are ignored until they get on the DOJ’s enforcement radar.

Practical Compliance Implications

Against that background, the key question is what a defensible compliance program should look like. While the appropriate design will depend on a company’s products, sourcing model, entry profile, and duty exposure, several baseline elements are increasingly important.

• Stronger governance and written procedures. Customs compliance should be treated as an active risk-management function. Senior management should ensure responsibilities are clearly allocated among trade compliance, legal, procurement, finance, logistics, sourcing, and internal audit. This is particularly important where customs decisions depend on information held outside the customs function, such as transfer pricing, engineering support, tooling arrangements, royalties, product development inputs, and origin substantiation.
• Documented classification and valuation controls. Importers should maintain defensible and documented processes for tariff classification and customs valuation. A central customs classification index should identify the applicable HTSUS code, product description, technical rationale, sourcing details, supporting rulings or legal notes, date of review, and responsible approver for each SKU or product family. Valuation controls should likewise address assists, royalties, license fees, proceeds, side payments, and other adjustments to value. Purchases from affiliated parties should be supported by a regularly updated transfer pricing study.
• A structured process for identifying assists. Assists remain a common area of under-controlled exposure because customs teams often do not have sufficient visibility into tooling, design work, engineering support, prototypes, molds, dies, or components provided free of charge or at reduced cost to overseas manufacturers. Importers should implement a formal process to identify such inputs across procurement, engineering, finance, and product teams; link them to the relevant imported goods; allocate value across affected entries; and document the methodology used.
• Risk-based post-entry reviews. With enforcement becoming more forensic after importation, companies should strengthen their own post-entry review processes. Reviews should be conducted periodically and on a risk-based basis to test whether entry data remains accurate, consistent, and adequately supported. They should cover classification, valuation, assists, origin declarations, Section 301 applicability, AD/CVD exposure, broker filing accuracy, and consistency across invoices, shipping documents, supplier certifications, and internal records.
• Enhanced supplier and origin, oversight. Origin-related enforcement risk remains particularly acute where country of origin affects duty liability or trade restrictions. Importers should not rely uncritically on supplier certifications where commercial incentives to misstate origin are obvious. Enhanced diligence may include confirming the actual manufacturer and production site, reviewing production records and bills of materials, assessing whether claimed substantial transformation is supportable, and testing consistency across invoices, labels, certificates, and entry data.
• Customs broker oversight and importer of record accountability. Importers should be careful not to treat customs brokers as a substitute for an internal compliance function. Although brokers play an important operational role in preparing and filing entries, the importer of record remains primarily responsible for the accuracy and completeness of the information declared to CBP. That means a company cannot simply hand off classification, valuation, origin, or admissibility decisions to its broker and assume that any resulting errors will be the broker’s problem. A defensible compliance program should therefore include clear written instructions to brokers, controls over the data and assumptions provided to them, periodic review of broker filings, escalation procedures for unusual transactions, and testing to confirm that broker practices align with company policy. Where multiple brokers are used, companies should also monitor consistency across filings and identify unexplained differences in classification, valuation treatment, origin declarations, or use of special trade programs.
• Protocols for investigation, disclosure, and remediation. Businesses should revisit their internal investigation and disclosure protocols in light of the DOJ’s emphasis on voluntary disclosure, cooperation, remediation, and qui tam channels. A current response plan should address issue escalation, document preservation, internal fact-finding, involvement of outside counsel where appropriate, quantification of affected entries and duty exposure, suspension of problematic practices, and decision-making around prior disclosure or other remedial engagement with the government. In a more prosecutorial environment, the speed and quality of a company’s internal response may materially affect enforcement outcomes.

Preparing for a More Prosecutorial Era

The significance of July 2026 developments lies not in any one announcement viewed in isolation, but in what they show collectively. The government first intensified use of existing enforcement tools and produced substantial early results. It has now reinforced that effort by creating permanent DOJ capacity dedicated to trade and customs-related fraud. At the same time, it has made its enforcement theory and practical priorities more explicit through the new DOJ-DHS Trade Enforcement Guide.

For importers and other supply-chain participants, the message is that customs compliance can no longer be approached as a narrow operational function concerned mainly with filing accuracy and duty calculation. It must instead be treated as part of a broader fraud, sanctions-adjacent, and supply-chain integrity risk framework in which tariff evasion, origin misstatements, forced labor-related representations, and unsafe or non-compliant imports may trigger civil fraud exposure, criminal scrutiny, and liability beyond the importer of record.

Businesses that invest now in governance, documentation, origin verification, valuation controls, post-entry testing, and credible escalation mechanisms will not eliminate enforcement risk. They will, however, be materially better positioned to identify problems early, remediate them before they escalate, and demonstrate that they take import compliance seriously in an environment where the US government plainly does as well.

If you have questions or concerns about this article, please feel free to reach out to any of the authors or your Foley & Lardner attorney. If you would like to see future updates, including our weekly Tariff-ied! updates on This Week in International Trade and our “What Every Multinational Company Needs to Know” compliance and trade series, please sign up for our email list. Click here to register.

The Foley International Trade & National Security Team advises companies across the full spectrum of international trade issues, including tariffs and Customs compliance, supply chain integrity, trade remedies (antidumping and countervailing duties), export controls, economic sanctions, and CFIUS national security reviews. Our Tariff & International Trade Resources blog regularly publishes practical guidance on all international trade topics and compiles it by topic area.