Sponsors (4)
The bill substantially strengthens tools and private enforcement to deter customs fraud and protect domestic producers, but does so by expanding liability, enforcement discretion, and litigation risk in ways that could burden legitimate businesses, expose confidential information, and disrupt supply chains.
Small U.S. businesses, taxpayers, and domestic producers benefit from stronger enforcement tools (multi-year importer bans, revocation of importer numbers, and exclusion from importer-of-record programs) that reduce repeat customs fraud and protect lawful U.S. markets.
U.S. manufacturers, producers, and wholesalers can sue fraudulent importers and obtain treble damages, injunctions to stop infringing imports, and recovery of costs and attorney’s fees, deterring fraud and compensating lost sales.
Higher civil penalties and increased multipliers for gross negligence create stronger financial deterrents against misclassification, undervaluation, and other customs violations.
Legitimate importers, purchasers, and intermediaries (especially small businesses and financial institutions) face expanded liability because purchasers buying from affiliates of prior violators can be presumed to know about violations, potentially imposing liability without actual awareness.
Much higher civil penalties and the availability of treble damages substantially increase potential financial exposure for importers, suppliers, and service providers, which could raise business costs and consumer prices.
Broad private standing (including trade associations and unions) and no amount-in-controversy threshold may spur many lawsuits, increasing litigation risk, court congestion, and compliance costs for defendants and the judicial system.
Based on analysis of 4 sections of legislative text.
Strengthens customs-fraud enforcement: bigger penalties, purchaser-presumption against buyers from affiliated violators, private lawsuits with treble damages, and importer-of-record bans for violators and affiliates.
Official title: 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 9, 2026 by Katie Boyd Britt · Last progress February 9, 2026
Makes customs fraud enforcement tougher by increasing civil penalties, creating presumptions that broaden purchaser liability for goods bought from affiliated violators, barring violators and their affiliates from importing for set periods, and giving U.S. businesses, unions, and trade groups a new private right to sue for injuries caused by fraudulent or grossly negligent import-related fraud. It also bars convicted or determined fraudsters and their affiliates from participating in the importer-of-record program and lets CBP treat likely shell or related companies as affiliated to prevent evasion.