American customs officials have long sought to thwart attempts to avoid duties using relatively common schemes like changing the country of origin on imports or misclassifying goods on forms. However, such issues historically have been handled through fines or civil settlements and seldom by criminal prosecution.
But now, the Justice Department says it’s adding “significant personnel” to a new unit to focus on trade fraud and other corporate crimes. Meanwhile, prosecutors at US attorneys offices have been requesting records of transactions involving foreign goods during the Biden administration as they look to build cases — setting up a potential blueprint for moving against those accused of shirking new tariffs.
“While some negligent acts or administrative errors may be more appropriately handled civilly, criminal enforcement is appropriate for significant violations of law,” said Matthew Galeotti, who heads the department’s criminal division. “When importers cheat, for example, by undervaluing goods or misstating the country of origin, they avoid the full cost of importing products into the US.”
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