Careers

Diversity, Equity & Inclusion

Experience

Innovation

Interactive Maps

Locations

About

Pages

Meet our team of innovators
Ask us how we do it

Professionals

Insights

Services

Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

Home | Thompson Hine LLP

Atlanta

Chicago

Cincinnati

Cleveland

Columbus

Dayton

Los Angeles

Minneapolis

New York

Washington, D.C.

core/separator

core/heading

On August 29, 2025, the DOJ announced a new cross-agency Trade Fraud Task Force aimed at aggressively pursuing importers and other parties who evade tariffs or attempt to smuggle prohibited goods.

core/list-item

The task force enhances interagency coordination and signals the Trump administration’s readiness to treat trade fraud as a national security concern, escalating the compliance burden for multinational companies.

Companies that fail to comply with customs obligations risk severe financial penalties, reputational harm, and a greater risk of criminal liability, including multi-million-dollar fines and lengthy prison terms.

core/list

On August 29, 2025, the U.S. Department of Justice (DOJ) <a href="https://www.justice.gov/opa/pr/departments-justice-and-homeland-security-partnering-cross-agency-trade-fraud-task-force">announced</a> a new Trade Fraud Task Force, an interagency initiative aimed at “robust enforcement” against importers and other parties who defraud the United States by evading tariffs or importing prohibited goods. The task force will coordinate closely with DHS agencies, including U.S. Customs and Border Protection (CBP) and Homeland Security Investigations (HSI), to strengthen enforcement against trade fraud that threatens U.S. economic and national security.

contentpilot/introduction

This initiative is part of the broader <a href="https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/?utm_medium=email&amp;utm_source=govdelivery">America First Trade Policy</a> announced by President Trump on Inauguration Day and will pursue enforcement through a combination of tools, including:

core/paragraph

Duty and penalty collection actions under the Tariff Act of 1930

Criminal prosecutions and asset seizures under Title 18 trade fraud and conspiracy provisions

The effort also aligns with <a href="https://www.whitehouse.gov/presidential-actions/2025/03/stopping-waste-fraud-and-abuse-by-eliminating-information-silos/?utm_medium=email&amp;utm_source=govdelivery">Executive Order 14243</a>, which strengthens the federal government’s ability to detect and eliminate waste, fraud, and abuse.

Whistleblower Referrals and Voluntary Disclosures

Because domestic industries are often the first to detect irregularities in import activity, the Trade Fraud Task Force is actively encouraging businesses and whistleblowers to report credible allegations of fraud.

In parallel, the DOJ is urging importers to:

Conduct internal audits of their importing practices;

Self-disclose and remediate violations; and

Align with DOJ guidance under Justice Manual §§ 4-4.112 and 9-74.120.

By incentivizing whistleblower referrals and voluntary disclosures, the task force is expected to substantially expand the enforcement pipeline, increasing scrutiny for companies with cross-border supply chains. Even unintentional violations, such as misclassified goods or incorrect country-of-origin declarations, can trigger civil penalties, criminal exposure, and significant reputational damage. Businesses should act now to fortify their compliance programs.

Review Trade Risk Exposure

Imports from or routed through high-risk jurisdictions

Companies importing large volumes of regulated goods should evaluate:

Assess Customs Compliance Programs

Ensure your compliance program can detect and respond to:

Monitor for Creeping Risk – Periodically reassess long-term suppliers and import channels for changes in ownership, geography, or product lines that could increase customs compliance risk.

Contractual Risk Management – Update supplier and logistics agreements to include Customs and trade compliance clauses.

Employee Training and Internal Reporting –

Train relevant personnel — including procurement, logistics, and legal — to identify red flags in tariff classification, country-of-origin labeling, and valuation.

Maintain secure, anonymous reporting channels and establish clear escalation procedures.

Conduct Targeted Audits – Regularly review import practices, especially for high-risk suppliers or jurisdictions.

Ensure Executive and Board Oversight – Regularly brief senior leadership and compliance committees on trade fraud risks and enforcement trends to maintain effective oversight. Designate crisis management personnel to respond to government inquiries or whistleblower actions.

The creation of the Trade Fraud Task Force marks a strategic escalation in how the federal government approaches customs enforcement. What was once episodic and reactive is now shifting to proactive, sustained scrutiny with civil and criminal consequences for noncompliance.

Companies that have traditionally relied on transactional customs practices should transition to comprehensive, programmatic strategies. These programs must be capable of producing historical data, tracing supplier inputs, validating admissibility correctly, and demonstrating “reasonable care” under 19 U.S.C. § 1484. The cost of inaction is now too high. Thompson Hine LLP’s <a href="https://www.thompsonhine.com/services/white-collar-defense-investigations/trade-crimes-defense/">Trade Crimes Defense Group</a> is actively advising clients on these developments and stands ready to assist with risk assessments, compliance reviews, and enforcement response planning.

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

https://admin.thompsonhine.com/wp-content/uploads/2025/09/DOJ-and-DHS-Launch-Joint-Trade-Fraud-Task-Force-What-Multinational-Companies-Need-to-Know.pdf

DOJ and DHS Launch Joint Trade Fraud Task Force: What Multinational Companies Need to Know

Services