The US Department of Justice just made it clear that trade fraud is no longer a pay-the-fine-and-move-on kind of problem. It’s now a go-to-jail kind of problem.
On July 14, the DOJ announced a new global trade enforcement section within its National Fraud Division, specifically designed to pursue criminal prosecutions against importers who skirt tariffs, violate product safety regulations, or breach anti-forced labor laws. The announcement was made at a US Customs and Border Protection facility at Chicago’s O’Hare International Airport.
From slaps on the wrist to criminal charges
Trade fraud enforcement in the US has historically lived in the world of civil penalties and administrative fines. Companies caught underreporting import values or dodging duties would face financial consequences, but rarely the kind that involve handcuffs.
That’s changing. Assistant Attorney General Colin McDonald emphasized that the DOJ is now classifying trade fraud violations as serious economic crimes, treating tariff evasion and customs fraud with the same gravity it treats securities fraud or money laundering.
