TheCorporateCounsel.net

President Trump’s decision to institute a new tariff regime to replace the one that the SCOTUS tossed makes the DOJ & DHS’s new “Resource Guide for Trade Fraud Enforcement” a must read for any company engaged in international trade. This BakerHostetler memo provides an overview of the Guide and discusses some of the key compliance issues that companies should address. This excerpt discusses the central role that the False Claims Act is plays in the Trump administration’s trade fraud enforcement efforts:

The Guide provides a public roadmap for how federal agencies are likely to evaluate trade fraud, customs violations and supply chain misconduct. For companies that import goods, rely on third-party brokers, purchase from overseas suppliers, or resell imported products, the practical message is clear: customs compliance failures may now be evaluated through a broader enforcement lens that includes civil False Claims Act liability, criminal prosecution, forfeiture and whistleblower-driven reporting.

Although the Guide surveys a broad range of enforcement tools, its examples and enforcement discussion underscore a central point for companies engaged in international trade: the False Claims Act has become one of the government’s most significant vehicles for pursuing customs fraud, tariff evasion and duty underpayment cases.

The Trade Fraud Task Force also announced that it has surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures and publicly charged losses since its August 2025 launch, emphasizing DOJ’s intent to treat customs fraud as a serious civil and criminal enforcement priority rather than a routine administrative compliance issue.

The memo goes on to identify some key takeaways for companies that result from the adminstration’s use of the FCA as its primary enforcement tool. These include the need to test supply chain due diligence against the demanding FCA standards, the importance of customs documentation that shows the analysis underlying the basis for the company’s decisions and the due diligence it conducted, and the potential to reduce damages through early disclosure of violations.

– John Jenkins