The U.S. Department of Justice (DOJ) has expanded its enforcement campaign against international trade and customs fraud after announcing recoveries exceeding $1 billion, approximately ₹8,600 crore, in less than one year.

According to the department, the amount includes civil and criminal recoveries, financial penalties, asset forfeitures and losses identified through publicly announced criminal charges.

The results were achieved through the DOJ’s Trade Fraud Task Force, which was launched in August 2025 to coordinate investigations into suspected customs violations, import fraud and other financial crimes connected with international trade.

New Specialised Trade Enforcement Unit Created

The DOJ has also established the Global Trade & Commerce Enforcement Section within its National Fraud Division.

The new section will focus specifically on complex fraud involving the movement, valuation and declaration of goods entering or leaving the United States.

Its investigations are expected to cover:

• Customs duty evasion
• Import and export fraud
• False trade documentation
• Product misclassification
• Undervaluation of imported goods
• False declarations of country of origin
• Fraudulent invoicing
• Cross-border financial offences

The unit will coordinate with other federal agencies where investigations involve multiple jurisdictions, companies or financial networks.

Trade Fraud Treated as Serious Economic Crime

DOJ officials indicated that customs violations will no longer be treated merely as regulatory or administrative failures where deliberate fraud is suspected.

Assistant Attorney General Colin McDonald, associated with the department’s fraud enforcement division, said that some companies had historically treated customs penalties as an ordinary business expense.

The department’s latest enforcement approach reflects the position that intentional trade fraud can constitute a serious economic crime affecting government revenue, lawful businesses and the wider trading system.

Common Customs Fraud Methods

Trade fraud can take several forms, particularly where businesses attempt to reduce duties, avoid restrictions or conceal the true nature of a transaction.

Common methods may include:

• Declaring goods below their actual value
• Using an incorrect tariff classification
• Falsifying the origin of products
• Dividing shipments to avoid reporting thresholds
• Submitting false invoices or certificates
• Routing goods through intermediary countries
• Misrepresenting the quantity or description of imported products

Investigators may compare customs declarations with purchase orders, shipping documents, banking records and communications to determine whether discrepancies were accidental or deliberate.

Global Supply Chains Increase Enforcement Complexity

The rapid growth of global trade, e-commerce and cross-border supply chains has made customs enforcement increasingly complex.

A single shipment may involve manufacturers, trading companies, freight forwarders, customs brokers, warehouses, banks and importers located in several countries.

According to experts, this complexity can be exploited to conceal the real value, origin or ownership of goods.

At the same time, digital documentation and financial data now allow enforcement agencies to identify unusual trading patterns across large numbers of transactions.

Financial Records and Trade Documents Under Review

The newly created enforcement section is expected to analyse a wide range of records, including:

• Import and export declarations
• Customs valuation documents
• Commercial invoices
• Bills of lading
• Certificates of origin
• Banking transactions
• Corporate ownership records
• Communications between suppliers and importers

Investigators may also examine whether payments made through banking channels correspond with the prices declared to customs authorities.

Significant differences between the declared value and the actual amount paid can become an important indicator of possible undervaluation or fraudulent invoicing.

Sanctions and Organised Economic Crime

The DOJ may also coordinate trade fraud investigations with cases involving sanctions violations, money laundering and organised economic crime.

Cross-border transactions can attract scrutiny where goods are routed through multiple jurisdictions, counterparties are hidden behind corporate structures or payments are made through unrelated entities.

Where necessary, U.S. agencies may seek cooperation from overseas regulators, banks and enforcement authorities to trace goods and financial transactions across jurisdictions.

Impact on Legitimate Businesses

Trade fraud does not affect only government revenue.

Companies that deliberately evade duties or misclassify products can sell goods at lower prices than competitors that comply with customs regulations.

This may create an unfair commercial advantage and distort competition within domestic markets.

Stronger enforcement is therefore intended to protect both public revenue and businesses that maintain lawful import-export practices.

Compliance Expectations for Global Businesses

Importers, exporters, customs brokers, logistics providers and multinational companies may face greater scrutiny as enforcement efforts expand.

Businesses operating internationally should ensure that:

• Product classifications are accurate
• Customs values reflect genuine commercial prices
• Country-of-origin declarations are properly supported
• Invoices match banking and shipping records
• Agents and customs brokers are subject to due diligence
• Trade records are retained and regularly reviewed
• Internal discrepancies are investigated promptly

Companies should not rely entirely on third-party logistics providers or brokers, as the importer may continue to face legal exposure for inaccurate declarations.

Internal Audits Becoming More Important

Regular trade compliance audits can help companies identify issues before they develop into enforcement cases.

Audits may examine whether similar products have been classified consistently, whether related-party transactions have been correctly valued and whether exemptions or preferential tariff benefits are supported by proper documentation.

Companies that discover significant errors should obtain legal and professional advice regarding correction, disclosure and remediation procedures.

Enforcement Expected to Expand

The creation of a dedicated trade enforcement section suggests that the DOJ intends to maintain long-term focus on customs and international commerce offences.

The department’s recoveries of more than $1 billion demonstrate the financial scale of recent enforcement activity.

Future investigations may increasingly combine customs data, banking information, corporate ownership records and international agency cooperation to identify sophisticated trade fraud networks.

Shunyatax Global Insight

The DOJ’s expanded enforcement strategy shows that customs compliance is becoming a core financial crime issue rather than a routine documentation function. International businesses must ensure that product classification, valuation, origin declarations and related-party pricing are supported by complete and consistent records.

Importers and exporters should introduce periodic customs audits, verify the work of logistics intermediaries and reconcile commercial invoices with customs and banking data. Even where inaccurate declarations are submitted by an agent, the principal business may still face substantial penalties, forfeiture exposure and criminal investigation.