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Fighting Trade Cheats Act of 2025
3/14/2025, 9:23 AM
Summary of Bill HR 1284
The proposed legislation also includes provisions to improve enforcement efforts by providing additional resources to agencies responsible for investigating and prosecuting customs fraud cases. This includes increasing funding for the Department of Homeland Security and the Department of Justice to enhance their ability to detect and prosecute fraudulent activities.
Overall, the Customs Fraud Enforcement Act is designed to crack down on individuals and businesses that seek to evade customs duties and taxes through fraudulent means. By increasing penalties and improving enforcement measures, the bill aims to protect American businesses and consumers from unfair competition and ensure that all importers are playing by the rules.
Congressional Summary of HR 1284
Fighting Trade Cheats Act of 2025
This bill increases penalties for, and establishes additional enforcement mechanisms related to, fraudulent and grossly negligent violations of U.S. customs laws.
Specifically, the bill increases the maximum civil penalty for a fraudulent violation to three times the domestic value of the merchandise. (Currently, the maximum penalty is the domestic value of the merchandise.) It prohibits a person who commits a fraudulent violation from importing merchandise into the United States for a five-year period.
Additionally, the bill increases the maximum civil penalty for a grossly negligent violation to the lesser of (1) 3 times the domestic value of the merchandise; or (2) 10 times the lawful duties, taxes, and fees. (Currently, the maximum penalty is the lesser of the domestic value of the merchandise or four times the lawful duties, taxes, and fees.) It prohibits a person who commits a grossly negligent violation from importing merchandise into the United States for a two-year period.
Further, the bill applies these importation bans to an affiliated person (e.g., a family member or employee) of the person who committed the fraudulent or grossly negligent violation.
The bill establishes a private right of action for an interested party (e.g., a manufacturer) affected by customs fraud or grossly negligent violations.
The bill prohibits any person (or an affiliated person) who commits a fraudulent or grossly negligent violation from participating in the U.S. Customs and Border Protection's Importer of Record program, and further requires revocation of their importer of record numbers.
