Sponsors (4)
The bill gives customs and private parties stronger tools to shut out fraudulent importers and protect domestic industry and tax revenue, but does so at the cost of greater compliance burdens, larger financial liabilities, increased litigation risk, and potential due-process concerns that can raise prices and harm some honest small businesses.
Honest U.S. businesses (manufacturers, wholesalers, and compliant importers) face less unfair competition because repeat fraudulent or grossly negligent foreign sellers and their affiliates can be barred from importing and CBP can revoke importer-of-record numbers and treat related entities as affiliates to block shell-company schemes.
U.S. manufacturers, wholesalers, trade groups and worker associations can sue importers who commit customs fraud and recover actual losses, treble damages, costs and reasonable attorney fees, and obtain injunctions to stop violating imports — giving domestic producers a private enforcement tool to protect jobs and local businesses.
Stronger penalties and enforcement deter undervaluation and misdeclaration, helping protect domestic industries and preserve tax revenue by reducing illicitly low-priced imports.
Many U.S. purchasers and importers may face higher prices and supply disruptions because long multi-year bans, importer-of-record revocations, and court injunctions can force sourcing changes and interrupt supply chains.
Small importers and businesses face much larger financial liability risk — including steep administrative penalties and treble civil damages plus attorney fees — which could threaten solvency, reduce competition, and raise consumer prices.
Expanded private enforcement raises the risk of meritless or strategic suits that could burden courts and defendants, while government costs may rise if the federal government reimburses discovery or intervenes, increasing taxpayer expense.
Based on analysis of 4 sections of legislative text.
Strengthens customs fraud enforcement by raising penalties and import bans, adds a private right of action for injured domestic parties, and disqualifies violators and affiliates from importer-of-record participation.
Introduced February 9, 2026 by Katie Boyd Britt · Last progress February 9, 2026
Tightens U.S. customs fraud enforcement by raising civil penalties, adding multi-year import bans for violators and their affiliates, and creating a new private right of action so injured businesses and unions can sue for damages and injunctions. It also makes persons with prior fraud or gross negligence findings (and their affiliated buyers) presumptively aware of violations and bars those parties from participating in the importer-of-record program.