DOJ Launches New Global Trade Fraud Enforcement Section

The US Department of Justice (DOJ) has established the permanent Global Trade & Commerce Enforcement Section (GTCES) to investigate and prosecute criminal import, trade, and customs fraud. Working with the Department of Homeland Security, the DOJ also released "A Resource Guide to Trade Fraud Enforcement," its first comprehensive framework on the topic.

This development signals a heightened and enduring government focus on trade compliance. The guide specifically emphasizes the use of the False Claims Act (FCA), including its "reverse false claim" provision, to pursue customs fraud, tariff evasion, and duty underpayment. This substantially increases financial risk for companies, as the FCA allows for treble damages and significant civil penalties, and enables qui tam lawsuits. Corporate counsel should note the guide's focus on robust internal compliance, active supply chain auditing, and the benefits of the DOJ's voluntary self-disclosure policy. Companies should review their trade compliance programs in light of these announced priorities.