Sponsors (39)
The bill strengthens government enforcement and gives domestic industry powerful private remedies to deter customs fraud, but does so by expanding CBP authority and civil penalties in ways that risk disrupting legitimate supply chains, imposing heavy costs on smaller businesses, increasing litigation, and creating potential privacy and due-process concerns.
U.S. manufacturers, producers, wholesalers, unions, and trade associations can sue importers who fraudulently evade customs laws to recover actual losses, treble damages, injunctions, and attorneys' fees, creating a strong private enforcement remedy against unfair competition.
Customs & Border Protection (CBP) gains stronger tools to block and remove repeat fraudsters and their affiliates from import privileges — including multi-year import bans and revocation of importer-of-record numbers — helping protect federal tariff revenue and honest U.S. businesses from ongoing fraud.
Higher fixed civil penalties for gross negligence increase the financial consequences for major customs violations, strengthening deterrence against undervaluation and misdeclaration.
Related companies that are otherwise compliant risk being banned or stripped of importer-of-record privileges when affiliates are found to have violated rules, which can abruptly disrupt lawful supply chains and cause operational and financial harm to many businesses.
Very large fixed penalties (much higher than current levels, potentially multiples of value) could impose crippling financial burdens on smaller importers, increasing bankruptcies and pushing up costs for consumers.
Expanded private suits with treble damages and fee-shifting, combined with no amount-in-controversy barrier, expose importers and related businesses to heightened litigation risk, forum shopping, and potentially numerous low-value suits that raise legal costs across the economy.
Based on analysis of 4 sections of legislative text.
Raises penalties and import bans for customs fraud/gross negligence, presumes purchaser knowledge for repeat affiliated offenders, adds private lawsuits, and bars violators from importer-of-record.
Official title: To amend the Tariff Act of 1930 to increase civil penalties for, and improve enforcement with respect to, customs fraud, and for other purposes.
Introduced February 13, 2025 by Mike Bost · Last progress February 13, 2025
Strengthens U.S. customs enforcement by increasing penalties and import bans for companies and affiliates that commit customs fraud or act with gross negligence, creates a private right of action for affected U.S. businesses and unions to sue violators, presumes buyers knew when purchasing from repeatedly offending affiliated sellers, and bars fraudsters and affiliates from participating in the Importer of Record program. The bill raises civil monetary penalties to higher fixed multiples of domestic value, authorizes multi-year import prohibitions, and gives courts authority to award treble damages, injunctions, and fees; the President may nullify court orders under IEEPA.