In an article for the Federal Bar Association Qui Tam Section’s newsletter, Bass, Berry & Sims attorneys Denise Barnes and Scott Gallisdorfer examined the Trump administration’s heightened focus on customs and tariffs enforcement. The Department of Justice (DOJ) has prioritized using the False Claims Act (FCA) to prosecute illegal trade practices. As the authors point out, recent statements from DOJ officials “mark a significant shift in enforcement focus, given that, historically, customs fraud was primarily addressed by U.S. Customs and Border Protection (CBP). This shift, however, underscores the DOJ’s commitment to aggressively enforce customs laws and combat tariff evasion through the FCA and other relevant criminal statutes, signaling increased scrutiny for importers and companies involved in international trade.”
Denise and Scott point to recent “notable FCA settlements involving misrepresentations of country or origin or product classification … [that] reflect the DOJ’s ongoing commitment to enforcing the FCA in the context of customs fraud, aiming to hold companies and individuals accountable for schemes that deprive the United States of revenue.” The authors go on to warn that “in addition to increased FCA exposure for customs-related allegations, companies also face heightened criminal exposure. The criminal basis for a customs fraud case typically involves violations of federal statutes that prohibit false statements, smuggling, and fraud against the United States in the context of importing goods.”
In conclusion, Denise and Scott note that “companies should anticipate greater scrutiny of any information submitted to CPB that impacts the duties owed—particularly, product classification, country of origin, and pricing. Unlike traditional FCA enforcement, which often targets healthcare companies, government contractors, or grant recipients, this risk extends to any company or individual importing goods into the U.S. Businesses should ensure that information provided to CPB accurately reflects the underlying transactions.”
The full article, “Customs Enforcement is the New Black,” was published in the Summer 2025 edition of the Turning Square Corners newsletter, published by the Federal Bar Association’s Qui Tam Section and is available online.