U.S. Trade Fraud Task Force Intensifies Crackdown on Cross-Border Trade Violations
The U.S. Trade Fraud Task Force (TFTF) has intensified enforcement against 18 types of violations, including false countries of origin and undervaluation. Violating sellers face administrative and criminal penalties, as well as civil damages of up to three times the loss.
What are the key facts?
- 1More than $1 billion recovered within 10 months of formation
- 218 types of violations involved, including false country of origin and undervaluation
- 3Liability covers cargo owners, freight forwarders, and customs brokers
What happened?
The Trade Fraud Task Force, jointly established by the U.S. Department of Justice and the Department of Homeland Security, recovered more than $1 billion through criminal prosecutions and civil recoveries within 10 months. Enforcement priorities include false countries of origin, incorrect HTS classification, and undervaluation. Cargo owners, freight forwarders, and customs brokers may all be held jointly liable.
What does this mean for cross-border sellers?
Sellers must make strictly compliant customs declarations and must not undervalue goods or engage in transshipment schemes, or they could face substantial fines and exclusion risks.