Last August, the Department of Justice and the Department of Homeland Security jointly announced a cross-agency Trade Fraud Task Force to enhance efforts to combat customs fraud and the collection of duties and tariffs. The Task Force reached an important milestone this month when Congress included, in the pending DOJ “minibus” funding bill, a provision appropriating $2 million for the task force’s operations. Representatives Rosa DeLauro and Raja Krishnamoorthi issued a joint statement lauding that funding, stating that “we are sending an unmistakable bipartisan signal that the U.S. will close enforcement gaps and hold trade cheaters accountable. American workers and communities deserve nothing less.”
Within the last month, we’ve seen the Task Force named as a coordinating partner in connection with a customs-fraud settlement involving a plastic resin distributor and mentioned in settlements involving a tungsten-carbide product distributor and an automotive-component manufacturer. The Task Force should be able to use the new funding to support its coordination efforts.
While the funding is welcome, we hope to see it increased in future appropriations. Task Force coordination of customs-fraud investigations and litigation is important because it enables the sharing of knowledge, expertise, and resources to bolster enforcement efforts. What would be even more effective would be enhanced funding for hiring DOJ lawyers, Assistant United States Attorneys, and HSI investigators dedicated to trade fraud. An investment in identifying, proving, and remedying customs fraud would return several times the amount spent to the Federal treasury.
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