The Department of Justice’s $549.5 million settlement with Perfectus Aluminum reflects a broader transformation underway in federal enforcement strategy: the False Claims Act is rapidly becoming one of DOJ’s most powerful tools for policing international trade misconduct.

For years, companies viewed customs compliance primarily through the lens of administrative enforcement by U.S. Customs and Border Protection. That approach has fundamentally changed.

Today, tariff evasion, customs fraud, and import-related misconduct increasingly carry the risk of parallel civil, criminal, and whistleblower-driven enforcement actions.

DOJ’s Multi-Tool Enforcement Strategy

The Perfectus matter illustrates DOJ’s increasingly aggressive use of coordinated enforcement mechanisms:

• Criminal prosecution
• False Claims Act litigation
• Whistleblower incentives
• Customs enforcement
• Restitution demands
• Parallel investigations

This integrated approach dramatically increases financial and reputational exposure for importers.

Even more importantly, DOJ can pursue companies years after the underlying import activity occurred. The alleged conduct here occurred between 2011 and 2014, while the whistleblower suit was filed in 2015 and the settlement was announced in 2026.

Trade compliance issues can therefore create long-tail liability extending for a decade or more.

Tariff Circumvention Risks Continue to Grow

Companies face heightened exposure in several recurring areas:

Transshipment Schemes

DOJ and CBP continue to scrutinize efforts to route Chinese-origin goods through third countries to disguise country of origin.

Product Misclassification

Improper HTS classifications remain a major enforcement target, especially where companies adopt aggressive interpretations unsupported by product functionality or commercial use.

Tariff Engineering

Legitimate tariff engineering remains lawful. However, companies must ensure product modifications have genuine economic and commercial substance.

Undervaluation

Transfer pricing adjustments, side payments, rebates, assists, and royalty structures all create valuation risks if not properly disclosed.

Forced Labor and Supply Chain Issues

Trade enforcement increasingly overlaps with Uyghur Forced Labor Prevention Act enforcement, sanctions compliance, and ESG-related supply chain scrutiny.

Compliance Programs Must Evolve

Many companies still maintain outdated trade compliance programs focused primarily on operational customs processes. That approach is increasingly inadequate.

Modern trade compliance programs should incorporate:

• Enterprise risk assessments
• Automated import screening tools
• Supplier due diligence
• Transaction testing
• Customs audit protocols
• Cross-functional compliance oversight
• Escalation procedures
• Whistleblower response mechanisms
• Internal investigation protocols
• Board reporting structures

In particular, compliance officers should ensure that customs and trade risks are incorporated into broader enterprise compliance governance frameworks.

The Importance of Voluntary Disclosure and Internal Investigations

When companies identify potential customs violations, rapid internal investigation and remediation are essential.

DOJ and CBP continue to reward companies that:

• Self-disclose violations
• Cooperate with investigations
• Implement corrective actions
• Enhance compliance controls
• Discipline responsible personnel

Failure to investigate red flags promptly can significantly increase exposure under both criminal statutes and the False Claims Act.

The Future of Trade Enforcement

The Perfectus settlement likely represents part of a broader enforcement wave rather than an isolated case.

As tariffs, industrial policy, sanctions, and national security concerns continue to converge, companies should expect:

• Increased whistleblower filings
• More FCA customs cases
• Greater criminal referrals
• Enhanced data analytics by enforcement agencies
• Expanded interagency cooperation
• Heightened scrutiny of Chinese supply chains

For multinational companies, import compliance has become a strategic legal and compliance issue requiring sustained executive attention.

The era of treating customs compliance as a narrow operational issue is over.