DOJ and DHS Launch Task Force to Combat Tariff Evasion
The DOJ and DHS launched a task force targeting tariff fraud.
Why it matters: Non-compliant companies risk penalties and reputational damage as enforcement intensifies against tariff fraud.
- Task Force initiated on August 29, 2025, to curb tariff evasion.
- Chicago's U.S. Attorney's Office leads prosecutorial efforts.
- Whistleblowers could earn up to 30% under the False Claims Act.
- $54M settled in FCA payments, $6.8M in prior civil liabilities.
The Department of Justice (DOJ) and the Department of Homeland Security (DHS) have formed a Trade Fraud Task Force to crack down on tariff and customs fraud. Officially launched on August 29, 2025, the task force reflects a concentrated effort to hold companies accountable for evading tariffs through stricter enforcement of trade laws.
Employing tools like the Tariff Act of 1930 and the False Claims Act (FCA), the task force aims to tackle fraud allegations more effectively. The U.S. Attorney's Office in Chicago spearheads these prosecutorial efforts, facilitating collaboration between departments.
An emphasis on whistleblower contributions through the enhanced Corporate Whistleblower Awards Pilot Program is significant. Those exposing fraud could potentially receive up to 30% of the recoveries, motivating insiders to report illicit activities.
Recent actions underscore the task force's commitment. A case settled for $54 million addressed FCA violations, possibly granting a relator $9.75 million. Another instance attributed $6.8 million to previous civil FCA settlements, tackling smuggling conspiracies.
Yes, but: Some businesses may find compliance burdensome amid an increase in scrutiny.