On Inauguration Day, President Trump issued the “America First Trade Policy,” which “promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.” A critical part of the policy is ensuring compliance with trade laws, including the payment of all applicable tariffs and duties, such as antidumping and countervailing duties and Section 301 tariffs intended to level the playing field for U.S. manufacturers. This Task Force will advance the America First Trade Policy by pursuing those who violate customs laws through duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act, and, wherever appropriate, parallel criminal prosecutions, penalties, and seizures under Title 18’s trade fraud and conspiracy provisions.

“The President’s America First Trade Policy supports American manufacturing by ending unfair trade practices,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Civil Division will coordinate with law enforcement partners to bring to justice any parties attempting to harm American workers through evasion of tariffs and other duties.”

Trade fraud not only deprives the government of vital revenue used to reinvest in America, but also threatens critical domestic industries, undermines consumer confidence, and weakens national security. Fraudsters seeking to destabilize and profit off of American markets increasingly are attempting to import below-market, industry-destabilizing goods without paying lawful tariffs and duties or by smuggling prohibited items that violate intellectual property rights of American companies or are otherwise illegal. These fraudsters have harmed American manufacturers and contributed to the loss of American jobs, often with financial backing from America’s adversaries who benefit from the fraud.

“For years, nefarious importers and their co-conspirators have put law-abiding businesses in the United States at a competitive disadvantage — and cheated the American public of funds — by brazenly committing trade fraud,” said Acting Assistant Attorney General Matthew R. Galeotti of the Department of Justice’s Criminal Division. “Trade fraud is not a victimless crime, and it won’t be tolerated.  The Criminal Division, led by the Fraud Section, is committed to using every available tool to hold bad actors accountable and prevent the theft of money intended to reduce the deficit and fund government programs.”

“The Civil Fraud and National Courts Sections of the Commercial Litigation Branch are integral to enforcement efforts aimed at identifying and stopping trade fraud,” said Deputy Assistant Attorney General Brenna Jenny of the Justice Department’s Civil Division. “Since March of this year, the Commercial Litigation Branch has reached civil settlements to resolve allegations of improperly evaded customs duties across a wide range of products, including multi-layered wood flooring, plastic resin, extruded aluminum products, and quartz surface products.  We look forward to enhanced coordination and information sharing with our law enforcement colleagues, and we welcome the vital contributions of whistleblowers who can help identify fraud schemes involving an array of imported products.”

Consistent with Executive Order 14243 aimed at “enhancing the Government’s ability to detect overpayments and fraud[,]” the Trade Fraud Task Force will work closely with its law enforcement partners at the Department of Homeland Security, specifically U.S. Customs and Border Protection and Homeland Security Investigations, to identify and combat trade fraud that threatens our economic and national security interests.  These enhanced cooperative efforts will serve the dual purposes of a more efficient government for the taxpayer and improved enforcement and deterrent outcomes.

“With unique customs authorities, expertise, generations of experience carried forward from the legacy U.S. Customs Service, and a steadfast commitment to interagency collaboration, ICE HSI’s Global Trade Division is fully committed to partnering with the Department of Justice and U.S. Customs and Border Protection to strengthen the investigations of trade-related crimes,” said Assistant Director for Global Trade Ivan Arvelo of U.S. Immigration and Customs Enforcement, Homeland Security Investigations. “Enforcing U.S. international trade laws is one of our agency’s top priorities, and this revitalized and expanded Trade Fraud Task Force is a significant step in the right direction. These enhanced efforts will undoubtedly add immense value to the task force and yield positive results in support domestic industry and businesses engaging in legal international commerce.”

Because American manufacturers and American workers are at the heart of this Administration’s trade policy, the Task Force welcomes referrals and cooperation from the domestic industries that are most harmed by unfair trade practices and trade fraud. Domestic industries are often best placed to spot fraud that threatens our markets and the livelihoods of American workers and their families. Referrals can be submitted to the Criminal Division’s Corporate Whistleblower Program at CorporateWhistleblower@usdoj.gov using the form available here. Similarly, the Task Force encourages whistleblowers to utilize the qui tam provisions of the False Claims Act to alert the government to credible allegations of fraud.  Finally, the Task Force encourages all importers and their agents to conduct thorough audits of their importing practices and voluntarily self-disclose and remediate unlawful behavior consistent with the Justice Manual §§ 4-4.112 and 9-74.120.