Tariff and trade violations are on DOJ’s radar screen.  No question but starting with Customs and Border Patrol we can expect that regulatory investigations and enforcement actions will increase.  Along with that — you can bet on this — DOJ’s criminal prosecution of tariff evaders will increase. 

This is not very surprising — companies have an incentive to circumvent and evade tariffs.  Depending on the amount of the tariff cost, companies can gain competitive advantages by avoiding tariff payments.  This is an inevitable result that companies have to protect against. 

CPB agents will quickly identify and refer potential criminal cases to Homeland Security Investigators.  The FBI may join in these investigations. 

With the expansion of tariffs under Sections 301 and 232, companies have to be alert to the common tariff evasion schemes, including undervaluation of goods, misclassification of imports under HTS codes, transshipment through third countries to disguise origin, false certification of origin, and division of shipments to avoid thresholds.

If your company is importing Chinese goods, Section 301 tariff evasion is high-risk activity.  Further, forced labor enforcement under the UFLPA applies to high-risk industries in China, including solar panels, textiles, electronics and furniture.

With respect to Section 232 tariffs, companies which import aluminum and steel face significant risks of evasion schemes.

DOJ has a variety of tools available for criminal enforcement — customs fraud, conspiracy, wire fraud and smuggling statutes: 18 U.S.C. §§ 371, 545, 1341.

Some recent criminal and civil prosecutions for tariff evasion include:

Florida Plywood Tariff (2024) — A Florida couple was sentenced to 57 month jail sentences for evading $42.4 million in customs duties.  The couple falsely declared that Chinese plywood originated from Malaysia or Sri Lanka to avoid anti-dumping duties.  The couple repackaged and relabeled the products. 

Akua Mosaics and President Plead Guilty to Smuggling (2024) — Akua Mosaics and its president pleaded guilty to conspiracy to smuggle goods into the U.S. by falsely declaring Chinese-manufactured tiles as originating from Malaysia. The false misrepresentation aimed to circumvent substantial anti-dumping duties. Fleming was sentenced to two years of probation and ordered to pay $1,040,000 in restitution.

Miami Businessman Charged with Transshipment of Tires (2024) — A Miami businessman fwas charged with smuggling for evading tariffs on Chinese truck tires. The businessman routed the tires through countries like Canada and Malaysia, misrepresenting their origin to U.S. authorities.

Evolutions Flooring Pays $8.1 Million (2025) for submitting false declarations stating that Chinese-manufactured multilayered wood flooring originated from Malaysia. This misrepresentation allowed the company to evade significant anti-dumping and countervailing duties, along with Section 301 tariffs.

Forward-Looking

DOJ is building coordinated teams among CPB, HSI and FBI agents to target tariff and trade enforcement.  To help identify circumvention schemes, investigators are employing data analytics and AI tools to identify anomalies or unusual patterns of imports. 

DOJ is focused on cases involving significant revenue loss, repeat offenders, specific import products (e.g. plywood), repeat offenders and companies tied to national security or forced labor interests.