Three Enforcement Actions, One Message: Trade Violations Are Serious Crimes
Learn more about this topic in our upcoming webinar: From Error to Action: Filing a Prior Disclosure with CBP
As tariffs climb and global trade becomes more complex, a growing number of importers are testing the limits, or outright breaking the law, to reduce or avoid duty payments and other compliance costs. 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. Three recent cases illustrate the new reality for enforcement.
1. Undervaluation and the False Claims Act: $2.1 Million Settlement
An importer of fitness equipment agreed to pay $2.1 million to resolve allegations under the False Claims Act that it knowingly undervalued imported goods.
According to the government, the company knowingly declared artificially low values on its imports in order to reduce tariff obligations. The company also failed to include the cost of computer tablets incorporated into packaged equipment.
The settlement also resolves a qui tam False Claims Act case brought by a whistleblower, Mr. Greg Dahlstrom. Dahlstrom will receive $420,000 of the proceeds from the settlement.
2. Importing Precursor Chemicals: Possible Life Sentence
On April 27, 2026, the United States Attorney for the Southern District of New York announced the unsealing of an indictment charging two Chinese nationals with importing a methamphetamine precursor chemical into the United States with the intent […]
