U.S. Trade Fraud Task Force Intensifies Enforcement of Cross-Border Trade Violations
The U.S. Trade Fraud Task Force (TFTF) has intensified enforcement actions against 18 types of violations, including false country of origin and undervaluation, exposing violators to administrative, criminal, and civil triple damages.
What are the key facts?
- 1Recovered over $1 billion in 10 months
- 2Involves 18 types of violations (false country of origin, undervaluation, etc.)
- 3Liability extends to shippers, freight forwarders, and customs brokers
What happened?
The trade fraud task force formed by the U.S. Department of Justice and the Department of Homeland Security has recovered over $1 billion through criminal prosecutions and civil recoveries in 10 months. Enforcement focuses on violations such as false country of origin, incorrect HTS classification, and undervaluation, with joint liability for shippers, freight forwarders, and customs brokers.
What does this mean for cross-border sellers?
Sellers must strictly comply with declaration requirements and are prohibited from undervaluing or engaging in transshipments, or they risk facing significant fines and exclusion risks.