Trump administration says trade fraud crackdown has topped $1 billion
The Trump administration’s trade fraud task force announced that during its first year, it recovered over $1 billion through criminal and civil actions, including penalties and forfeitures. Launched by the DOJ and Homeland Security in August of the previous year, the task force investigates customs fraud linked to false origin declarations, misclassification, and routing through third countries to evade tariffs. Notable cases include charges against operators importing hundreds of millions in jewellery from India, the UAE, Oman, and Singapore while misdeclaring origin to avoid duties, with some schemes resulting in over $38 million in avoided tariffs. The largest settlement to date is $549.5 million with perfectus Aluminum,accused of disguising Chinese aluminum to dodge duties. Other significant penalties involve companies like Ceratizit USA, Boise Cascade, and Royal Sovereign international, on charges ranging from evading duties to product safety violations causing fires and fatalities. The task force also targets forced labor, money laundering, and products risking public health. Additionally,the Department of Homeland Security assessed over $2.1 billion in penalties this year and barred numerous parties from federal contracts. The DOJ introduced a new enforcement section and guidance for companies to voluntarily disclose violations.
The Trump administration announced Tuesday that its trade fraud task force has surpassed $1 billion in criminal and civil recoveries, penalties, forfeitures, and publicly charged losses during its first year, Justice Department officials said at a press conference in Chicago.
The DOJ and the Department of Homeland Security launched the Trade Fraud Task Force in August last year to investigate customs fraud across global supply chains. Its cases target schemes including false country-of-origin declarations, misclassified goods, and the routing of products through third countries to evade tariffs.
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“Trade fraud is a serious economic crime,” said Colin M. McDonald, assistant attorney general for DOJ’s National Fraud Enforcement Division. “This billion-dollar milestone demonstrates that the United States and the National Fraud Enforcement Division will no longer allow the integrity of our country’s borders and markets to be compromised for illicit profit.”
Officials announced charges Tuesday in two Chicago cases involving more than $930 million in imported gold jewelry.
Raj Kohli and Veena Kohli, operators of California-based Surya International, allegedly imported about $693 million in jewelry from India and the United Arab Emirates while falsely declaring that it originated in Singapore from approximately August 2020 to May 2024. Prosecutors said the scheme avoided more than $38 million in customs duties.
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In a separate case, Illinois wholesaler Narain Gulabani allegedly imported about $240 million in jewelry while falsely listing Oman or Singapore as its country of origin, avoiding more than $13.6 million in duties from around May 2016 to October 2021.
The task force’s largest resolution to date is a $549.5 million settlement with Perfectus Aluminum and affiliated companies. Prosecutors alleged the companies disguised Chinese aluminum extrusions as pallets to evade antidumping and countervailing duties.
Other cases contributing to the milestone include a $54 million settlement with Ceratizit USA, a $6.3 million criminal fine against Boise Cascade over illegally imported birch plywood, and an $8 million fine and restitution order against Royal Sovereign International for failing to report defective imported air conditioners linked to more than 40 fires and one death.
The task force also pursues forced labor, trade-based money laundering, and imported products that threaten public health or safety. Its investigations can reach beyond importers and customs brokers to distributors, commercial buyers, and other companies that knowingly profit from illegally imported goods.
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The DOJ also announced the creation of a Global Trade and Commerce Enforcement Section and released a joint DOJ-DHS guide explaining trade fraud laws, enforcement priorities, and options for companies that voluntarily disclose violations.
Separately, Customs and Border Protection said it has assessed more than $2.1 billion in commercial trade penalties this fiscal year and barred 35 parties from doing business with the federal government.
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