Downstream Buyers Now Face Criminal Risk for Duty-Evaded Imports

Recent case law confirms downstream buyers can face criminal liability for knowingly buying goods evading customs duties.

A significant shift in customs fraud enforcement is unfolding in the U.S., as recent DOJ actions and court rulings confirm that downstream purchasers—not just the original importers—are subject to criminal liability for duty evasion schemes.

• On April 27, 2026, Boise Cascade Company pleaded guilty to purchasing Chinese-origin plywood illegally transshipped to avoid antidumping and countervailing duties. The $6.3 million penalty highlights serious exposure for buyers who proceed despite reasons to suspect improper import processes.
• The scheme originated with Horizon Plywood, which evaded more than $42 million in duties. Despite neither importing the goods directly nor falsifying customs records, Boise Cascade was prosecuted for knowingly taking part further down the chain.
• The DOJ has clarified that enforcement extends to all companies knowingly involved. Attorneys at Foley & Lardner note: "The Department of Justice (DOJ) is serious about criminal enforcement for customs fraud."
• This follows a broader enforcement pattern. In June 2025, the Ninth Circuit affirmed a $24 million treble damages award against Sigma Corporation for false customs declarations to evade duties.

Private relators can also now bring so-called "reverse false claims" under the False Claims Act over underpaid customs duties, even without U.S. government intervention. This intensifies risk for downstream actors and expands possible claimants in these enforcement actions.

Legal departments should reassess supply chain oversight and ensure robust compliance frameworks to avoid criminal exposure and mounting financial penalties as the DOJ sharpens its focus.