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U.S. Department of Justice (DOJ)

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DOJ and DHS Publish Comprehensive Trade Fraud Enforcement Guide: What Importers Need to Know 

Short summary: The DOJ and DHS have jointly published a new Resource Guide to Trade Fraud Enforcement, highlighting the government’s coordinated approach to combating customs fraud and strengthening import compliance. The guide explains key enforcement authorities, common trade fraud schemes, and the government’s expectations for importers, customs brokers, and others participating in global supply chains.

The U.S. Department of Justice (DOJ) and Department of Homeland Security (DHS) have released a new 31-page Resource Guide to Trade Fraud Enforcement, providing one of the clearest public statements yet on how the federal government views customs fraud, enforcement priorities, and importer compliance obligations. The guide was developed by the Trade Fraud Task Force, a partnership that includes DOJ’s National Fraud Enforcement Division, Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), and other federal agencies. 

While much of the guide summarizes existing laws and enforcement authorities, its significance lies in the government’s messaging. It makes clear that customs violations are no longer viewed as merely technical or administrative issues. Instead, DOJ and DHS repeatedly characterize trade fraud as a threat to economic security, national security, public safety, and human rights, signaling that aggressive enforcement will continue across multiple agencies. 

Combatting Trade Fraud Is a Priority for the Federal Government 

One of the report’s primary themes is that trade fraud extends far beyond the underpayment of duties. According to the guide, fraudulent import practices undermine domestic manufacturers, deprive the government of […]

By |2026-07-21T12:47:52-04:00July 21, 2026|Import, U.S Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), U.S. Department of Justice (DOJ)|0 Comments
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The Largest Customs Fraud Settlement from the DOJ Trade Fraud Task Force: $549.5 Million and What This Means for Importers 

On May 12, 2026, the Department of Justice announced one of the largest customs fraud settlements in U.S. history. Perfectus Aluminum Inc., Perfectus Aluminum Acquisitions LLC, and four affiliated warehousing companies (“the Defendants”) agreed to pay $549.5 million to resolve False Claims Act (“FCA”) allegations that they knowingly evaded antidumping and countervailing duties on aluminum extrusions imported from China. 

The Scheme: Pallets That Weren’t Pallets 

The underlying conduct was relatively simple. According to the Settlement Agreement, between July 2011 and June 2014, the Defendants knowingly made false statements on CBP Form 7501 Entry Summaries, misrepresenting more than 2.2 million aluminum extrusions as finished merchandise not subject to antidumping and countervailing duties. The mechanism? The extrusions were spot-welded together to make them appear to be functional pallets — and there were no actual customers for these “pallets.” So, no merchandise was ever actually sold. 

Criminal Conviction Came First 

This civil settlement did not arise in a vacuum. In August 2021, a jury in the Central District of California convicted the Defendants of conspiracy to defraud the United States, wire fraud, and passing false or fraudulent documents through a customs house. Following sentencing, the defendants were ordered to pay restitution of approximately $1.83 billion to CBP. The May 2026 FCA settlement resolves the parallel civil litigation arising from the same conduct. Importantly, this civil resolution does not absolve the defendants from any criminal liability outlined in […]

By |2026-05-22T15:16:34-04:00May 22, 2026|AD/CVD, Enforcement, Import, International Trade, U.S. Customs and Border Protection (CBP), U.S. Department of Justice (DOJ), Uncategorized|0 Comments
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FinCEN Issues NPRM to Fully Implement Whistleblower Program

Authors:

Jennifer Diaz, President, Diaz Trade Law

Amber Pirson, Attorney, Diaz Trade Law

FinCEN’s March 30, 2026, Notice of Proposed Rulemaking (NPRM) marks a major step toward fully operationalizing the agency’s whistleblower program, designed to incentivize reporting of Bank Secrecy Act (BSA), sanctions, IEEPA, and other illicit finance violations. The proposal outlines how whistleblowers can securely submit information, how awards will be determined, and what protections will be available.  

This development reflects the Treasury Department’s broader strategy to strengthen financial system integrity and encourage actionable tips that support enforcement efforts. For financial institutions, compliance professionals, and potential whistleblowers, the NPRM provides long‑awaited clarity on program structure and expectations. 

Overview of the Proposed Rule 

FinCEN’s NPRM proposes a comprehensive framework for administering whistleblower submissions and awards. Key elements include: 

  • Secure submission procedures for individuals reporting suspected violations of the BSA, OFAC sanctions, and related laws. 
  • Eligibility criteria for whistleblower awards, including documentation requirements and timelines. 
  • Award ranges of 10–30% of monetary penalties collected when a whistleblower’s information leads to a successful enforcement action. 
  • Robust protections for individuals who provide information, including confidentiality and anti‑retaliation safeguards. 

These provisions aim to encourage early, detailed reporting while ensuring whistleblowers are shielded from adverse consequences. 

Why FinCEN Is Prioritizing Whistleblower Incentives 

The NPRM aligns with Treasury’s broader […]

By |2026-04-03T10:52:12-04:00April 3, 2026|Enforcement, International Law, Trade Policy, U.S. Department of Justice (DOJ), U.S. Office of Foreign Assets Control (OFAC)|0 Comments
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Compliance Mistakes Can Turn Criminal: Don’t Let This Happen to You

Many importers assume that customs compliance issues are purely administrative and can be easily resolved. In reality, customs law and criminal law intersect far more often than most companies realize. What begins as a civil customs matter can escalate quickly into a criminal investigation when regulators suspect fraud, evasion, or willful misconduct.

When Customs Issues Cross the Line

Most customs violations start as a civil enforcement matter. Errors involving classification, valuation, country of origin, or admissibility are often addressed through a request for information (CBP 28), notice of action (CBP 29), protest, prior disclosure, or penalty proceeding. However, when patterns emerge or when agencies believe false statements or deliberate schemes are involved, the enforcement posture can change dramatically.

Federal agencies, including U.S. Customs and Border Protection (CBP), Homeland Security Investigations (HSI), and the Department of Justice (DOJ), routinely collaborate to investigate potential criminal violations tied to import activity. These investigations may focus on:

  • Undervaluation or misclassification to avoid duties
  • False statements or omissions in entry documentation
  • Evasion of import restrictions or regulatory requirements
  • Coordinated schemes involving suppliers, brokers, or intermediaries

Once criminal intent is suspected, importers may face subpoenas, search warrants, asset seizures, or even criminal charges.

Increased Focus on Enforcement

The recent volatile tariff environment has created increased incentives to cheat the system. The U.S. government has made clear that it is

By |2026-01-30T10:24:39-05:00January 30, 2026|Enforcement, Import, International Trade, U.S. Customs and Border Protection (CBP), U.S. Department of Justice (DOJ)|0 Comments
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ICYMI: Electronics Company Pays $11.8M to Resolve Duty Evasion Allegations

The Department of Justice announced that Harman International Industries, Inc., an audio electronics company, agreed to pay $11.8M to settle allegations of evading duties on goods made of aluminum from China.

What Happened

For a period of over ten years, from June 2011 to March 2023, Harman knowingly imported heat sinks that contained extruded aluminum from China without paying the required antidumping and countervailing duties (AD/CVD).

The settlement also reveals that when Harman discovered its failure to pay AD/CVD, the company concealed this fact and decided not to disclose it to the U.S. government. 

This case arose from a whistleblower lawsuit filed under the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The whistleblower in this case will receive over $2M of the settlement proceeds.

Enforcement is a Top Priority for the U.S. Government

High tariffs in the current trade environment have created a higher incentive to cheat. The U.S. government has made clear that enforcing customs laws is a top priority. 

For example, on May 12, 2025, Matthew Galeotti, the Head of the U.S. Department of Justice’s Criminal Division, sent a memo to all criminal division personnel highlighting the focus areas of the division for white-collar crime.

The memo included a […]

By |2025-12-12T09:10:25-05:00December 12, 2025|Enforcement, Import, International Trade, U.S. Customs and Border Protection (CBP), U.S. Department of Justice (DOJ)|0 Comments
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