DOJ Expands False Claims Act Enforcement to Import Duty Evasion
Multinational importers must immediately audit customs compliance controls, as DOJ’s new False Claims Act enforcement for duty evasion carries treble damages and far harsher penalties than prior CBP-only administrative actions.
The DOJ has significantly ramped up trade enforcement following the 2025 creation of its Market, Government, and Consumer Fraud Unit and cross-agency Trade Task Force, highlighted by a $549.5 million False Claims Act (FCA) settlement with aluminum importers accused of evading antidumping and countervailing duties via falsified CBP entry documentation. This marks a sharp shift from prior customs enforcement led solely by CBP, as DOJ now frames duty evasion as fraud against the U.S. government, triggering treble damages, statutory penalties, and broader investigatory powers. Importers must audit core customs controls including tariff classification, valuation, country of origin, and AD/CVD compliance, ensure all government-facing import documents are accurate, and review UFLPA forced labor representations for consistency, as inaccuracies can support FCA claims.