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Customs Fraud Cases Reach Record Levels as DOJ Intensifies Tariff Evasion Enforcement

The U.S. Department of Justice is pursuing customs fraud through False Claims Act litigation as tariff evasion cases reach unprecedented levels. Recoveries from customs fraud cases totaled more than $570 million during the first five months of 2026, surpassing all prior annual totals. Overall customs fraud recoveries have exceeded $918 million under the False Claims Act.

Recent government actions include a $549.5 million settlement involving aluminum extrusion imports and enforcement actions against First Brands Group and alleged duty evasion schemes. Legal experts expect the trend to accelerate as whistleblower activity increases and government investigative capabilities improve.

Most customs fraud cases involve three primary schemes: misclassification of goods into lower-duty tariff codes, undervaluation through false invoices, and country-of-origin fraud including transshipment through third countries. The predictable nature of these violations has made customs fraud an increasingly attractive enforcement priority for federal authorities.