U.S. Customs and Border Protection (CBP)

ICYMI: Patio Furniture Company Agrees to Pay $4.9 Million to Resolve Duty Evasion Allegations

On July 24, 2025, the Department of Justice (DoJ) announced that Grosfillex, Inc., a Pennsylvania furniture company, agreed to pay $4.9 million to resolve allegations it evaded antidumping and countervailing duties (AD/CVD).

Grosfillex submitted false forms to Customs and Border Protection (CBP) claiming that furniture parts made of extruded aluminum from China were not subject to AD/CVD. The company attempted to hide the aluminum extrusions by falsely packing them as sham “furniture kits.” Additionally, for a different subset of extrusions, the company failed to correct customs forms it had submitted previously, even after learning that the forms contained false information.

The investigation arose from a whistleblower lawsuit filed under the False Claims Act by a former employee of Grosfillex. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. In this case, the whistleblower will receive $962,662.74.

Duty Evasion is on the Rise

This case is just one example of the growing incentive to cheat that comes with higher tariffs. Whether it’s through misclassifying goods, undervaluing imports, or using deceptive transshipment routes, some companies think they are being creative, but, instead, are participating in outright illegal strategies to reduce their tariff liability.

Higher tariffs have even contributed to the emergence of a cottage industry of “tariff reduction” companies that suggest ways to cut import costs. However, many of these so-called strategies amount to evasion, […]

ICYMI: USDA Plan Calls for Stronger Enforcement of Agricultural Imports

On July 8, 2025, the U.S. Department of Agriculture (USDA), along with the Department of Homeland Security (DHS), the Department of Justice (DoJ), and the Department of Defense (DoD), released a National Farm Security Action Plan to elevate American agriculture as a key element of the country’s national security. 

Plan Details

The action plan will enable USDA to work closely with governors, state legislators, and federal partners to further integrate agriculture into the broader national security efforts over the coming months and years.

The USDA and its government partners will take “aggressive action” across seven critical areas:

  1. Secure and Protect American Farmland – Address U.S. foreign farmland ownership from adversaries head-on. Total transparency. Tougher penalties.
  2. Enhance Agricultural Supply Chain Resilience – Refocus domestic investment into key manufacturing sectors and identify non-adversarial partners to work with when domestic production is not available. Plan for contingencies.
  3. Protect U.S. Nutrition Safety Net from Fraud and Foreign Exploitation – Billions have been stolen by foreign crime rings. That ends now.
  4. Defend Agricultural Research and Innovation – No more sweetheart deals or secret pacts with hostile nations. American ideas stay in America.
  5. Put America First in Every USDA Program – From farm loans to food safety, every program will reflect the America […]

Jennifer Diaz Featured in the Wall Street Journal

We are pleased to announce that DTL President Jennifer Diaz was recently featured in the Wall Street Journal!  

Reporter Corinne Ramey walks through the recent uptick in efforts to evade rising tariffs and how the federal government is responding. She quoted Jennifer on DTL’s approach to advising clients on enforcement. 

Below are a few snippets from the piece. Read the full article on the WSJ.com here. 

“First came President Trump’s announcements of sweeping tariffs. Next up, lawyers say, is the cheating. 

Trade lawyers say that as tariffs skyrocket, so too do the incentives not to pay them. Clients are inundating them with questions about the line between lawful loopholes and fraud. 

At the same time, the Justice Department’s shifting white-collar priorities to pursue tariff and customs-related cases more aggressively have helped create a perfect storm for more trade enforcement. And lawyers say they have seen a sharp increase in calls from whistleblowers looking to file their own cases about alleged wrongdoing…” 

“Jennifer Diaz, a Florida trade lawyer, said her firm was ramping up its criminal expertise to prepare for a new wave of enforcement. The firm now advises clients on regulatory matters and navigating customs rules.  

‘To have this topic being front page news on a daily basis is a trade lawyer’s dream,’ Diaz said.” 

Diaz Trade Law is […]

High Tariffs, High Stakes: The Rise in Customs Fraud and Enforcement Risk

As tariffs climb and global trade grows more complex, a growing number of importers are testing the limits, or outright breaking the law, to reduce or avoid duty payments. U.S. enforcement agencies, including Customs and Border Protection (CBP) and the Department of Justice (DOJ), have made it clear that customs fraud will not be tolerated and is a top enforcement priority. 

High Tariffs = High Incentive to Cheat

High tariffs create an incentive to cheat. Whether it’s through misclassifying goods, undervaluing imports, or using deceptive transshipment routes, some companies are turning to creative or outright illegal strategies to reduce their tariff liability.

This is not theoretical, we’ve seen it before. During the U.S.–China trade war of 2018–2019, there was a surge in country-of-origin fraud, particularly Chinese goods re-labeled as “Made in Vietnam.” Known as a “country of origin wash,” this practice misleads CBP and avoids duties tied to China. 

These incentives have contributed to the emergence of a cottage industry of “tariff reduction” companies that advertise ways to cut import costs. However, many of these so-called strategies amount to evasion, putting importers at serious legal risk.

DOJ Prioritizes Customs Fraud

The Department of Justice is watching closely. In a May 2025 memo, Matthew Galeotti, head of the DOJ’s Criminal Division, named trade and customs fraud as one of the top enforcement priorities in white-collar crime.

The DOJ also expanded its Corporate Whistleblower Awards Pilot Program […]

Breaking the Chains: Forced Labor in Mexico’s Supply Chains

Forced labor is a severe violation of human rights and a persistent global issue affecting millions of individuals. According to the ILO, 27.6 million men, women, and children are in forced labor globally.[1] Over $236 billion USD is generated in illegal profits using forced labor every year.[2]

Both Mexico and the United States have robust legal frameworks to eradicate the use of forced labor and have made great strides in detection and enforcement. However, the secretive nature of the forced labor industry, changing bad actor tactics, and the intensive resourcing required presents challenges to both countries.

Forced Labor in Mexico

While Mexico has made great strides in identifying and preventing forced labor, it is still a problem that impacts hundreds of thousands of citizens. Certain risk factors[3] may make certain individuals more vulnerable to forced labor than others, including:

  • Poverty
  • Unstable immigration status
  • Language barriers
  • Lack of social support systems
  • Physical or developmental disabilities

An estimated 850,000 people are still living in modern slavery today in Mexico.[4] The Department of Labor has identified a list of goods it has reason to believe are produced using child labor and forced labor in Mexico including[5]:

  • Beans
  • Cattle
  • Chile peppers
  • Coffee
  • Cucumbers
  • Eggplants
  • Garments
  • Leather goods/accessories
  • Melons
  • Onions
  • Poppies
  • Pornography
  • Sugarcane
  • Tobacco
  • Tomatoes

Investigations have also uncovered severe forms of child labor including using children in the production and trafficking of drugs and in dangerous agricultural work.[6]

Mexico Efforts to Eliminate Forced Labor in Mexico

Over the […]

By |2025-06-25T16:24:22-04:00June 25, 2025|Countries, Forced Labor, Mexico|0 Comments
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