Bass, Berry & Sims attorney Denise Barnes co-authored an article for the American Association of Exporters & Importers outlining the use of the False Claims Act (FCA) as an enforcement tool against customs fraud. The article was co-authored with trade attorney, Evelyn Suarez.
In August 2025, the Department of Justice and Department of Homeland Security announced the formation of the Trade Fraud Task Force, prioritizing the enforcement actions against companies who seek to evade tariffs and other duties.
In speaking about the heightened focus on customs fraud, the authors noted, “Customs fraud has become a central enforcement priority in today’s trade landscape because, in the Trump Administration’s view, it directly undermines U.S. economic security, deprives the Government of tariff revenue, and disadvantages domestic companies and importers that play by the rules.” They further explain, “A core aspect of this policy [America First Trade Policy] is strict enforcement of trade laws to protect U.S. manufacturers. Thus, compliance with customs laws has become a cornerstone of the Administration’s broader ‘America First’ policy vision.”
The use of the FCA to prosecute customs fraud cases “implicates all companies that import goods from outside of the U.S.” the authors state. They add, “Although enforcement has consistently increased over the last decade, this Administration’s focus on tariffs as an essential national security policy heightens scrutiny for all companies and individuals importing goods. Moreover, the Administration is encouraging whistleblowers to bring such actions. These factors increase exposure for companies even where the allegations lack merit.”
The full article, “Cracking Down on Customs Fraud Using the False Claims Act (Pt.1),” was published by the American Association of Exporters & Importers and is available online. This is the first of a two-part series; the second article will discuss the FCA in greater detail, specifically how it is applied in customs cases. It will also provide recommendations on how your company can prepare to defend itself against such claims.