Sponsors (4)
This bill strengthens penalties, bans, and private enforcement tools to deter customs fraud and protect domestic producers, but it significantly increases liability, expands government enforcement discretion, and risks disrupting legitimate businesses and supply chains.
Importers found to have committed fraud or gross negligence (and their affiliates) face multi-year bans and higher penalties, reducing repeat customs fraud and protecting lawful U.S. import markets.
U.S. manufacturers, producers, and wholesalers can sue importers who commit customs fraud to recover treble damages, obtain injunctions to stop further infringing imports, and recover costs and reasonable attorney’s fees—deterring unfair competition and compensating lost sales.
CBP can treat related or linked companies as affiliated based on declared trade patterns and must revoke importer numbers when ineligibility is later discovered, preventing use of shell companies and strengthening importer-program integrity.
Purchasers and legitimate importers who buy from affiliates of prior violators may be legally presumed to have knowledge and face liability even without actual awareness, expanding risk for otherwise compliant businesses.
Higher civil-penalty multipliers (and the availability of treble-damages awards) substantially increase potential financial liability for importers, suppliers, and downstream businesses, which could raise compliance costs and consumer prices.
Broad private standing (including trade associations and unions) combined with no amount-in-controversy threshold may produce a surge in private lawsuits, increasing court dockets and litigation costs for defendants and taxpayers.
Based on analysis of 4 sections of legislative text.
Increases penalties and import bans for fraudulent or grossly negligent customs violations, creates a private treble-damage right of action, and bars violators and affiliates from the importer-of-record program.
Introduced February 9, 2026 by Katie Boyd Britt · Last progress February 9, 2026
Makes customs fraud penalties tougher, broadens who can be held liable, creates a private civil lawsuit for injured U.S. businesses and unions, and bars fraudsters (and related affiliates) from using an importer-of-record program. It raises monetary penalties, presumes purchaser knowledge when buying from previously determined affiliated violators, allows treble damages and injunctions for injured parties, and gives CBP new tools to treat companies as affiliated to block abuse.