Increased Tariffs Mean Increased Enforcement: Recent Developments In The Area Of Customs Enforcement

The first eight months of President Trump's second term have resulted in a substantial increase in duty liability on virtually every import from almost every country in the world. And these additional duties have been added to existing duty liability, both from normal customs duties, Section 301 duties from the first Trump administration, and dozens of existing antidumping and countervailing duty orders. This increased liability means that companies involved in import transactions face a heightened risk of potential liability, either because of negligence in the import process or because of improper efforts to reduce customs duties.

The increased risk to importers is evident in two specific areas: the recent announcement by the US Department of Justice (DOJ) of a Trade Fraud Task Force to combat potential customs fraud, and increased awards under the False Claims Act (FCA) arising out of improper reporting of customs duty liability. Both developments increase the