Foreign products entering the United States often are subject to import duties and tariffs designed to support the domestic market. Many of these duties and tariffs have skyrocketed in recent years. During the Trump administration, the U.S. government imposed punitive trade measures that have required importers to pay billions of dollars in duties and tariffs to import thousands of goods, largely from China.

These trade measures are known by many names. Most companies doing business in China are familiar with the so-called Section 301 tariffs, Section 232 tariffs, and antidumping and countervailing duties that were imposed during the Trump administration. Collectively, they are perhaps best known as the “Trump tariffs.”

When President Biden was elected, many companies hoped that the Trump tariffs would go away. However, the current administration has defended the actions of its predecessor and has signaled that it “plans to broadly maintain Trump’s tariffs on U.S. imports of Chinese goods.” The Trump tariffs seem to be here to stay.

Most companies have adjusted to the new trade environment, either paying the increased costs associated with importing their goods or shifting their operations away from China and other countries targeted by the duties and tariffs. However, some companies have resorted to fraud to avoid paying their fair share.

Some of the most common fraudulent schemes to evade tariffs or duties include misclassifying imported goods, misrepresenting their country of origin, fraudulently underreporting their value, or transshipping and relabeling products. These schemes have become more common in recent years as companies try to avoid the impact of the Trump tariffs.

These schemes are harmful for many reasons. They permit companies to keep their prices unfairly low, they discourage the use of American manufacturing, and they cheat taxpayers out of duty and tariff revenue.

With millions of containers entering the United States every day, the government does not have the resources to monitor every shipment. The government needs the assistance of whistleblowers to deter and punish customs fraud. Whistleblowers often have inside information about their own company’s fraudulent practices, or they might notice that a competitor has been committing fraud.

Whistleblowers who have information that a company is evading tariffs or duties, or committing other types of customs fraud, may bring a lawsuit under the False Claims Act (FCA). The FCA allows whistleblowers to receive a portion of the money recovered by the government in a successful enforcement action.

Whistleblower lawsuits deter unfair practices and help level the playing field so everyone follows the same rules. In addition, they help recover funds that American taxpayers have been cheated out of.

Whistleblowers who file a lawsuit under the FCA can receive 15% to 30% of the money recovered in the case. They are also protected from retaliation by their employers.

If you are aware of customs violations or schemes related to customs fraud, please contact the whistleblower attorneys at Baron & Budd.

Our Team

With more than 30 years of experience, the attorneys on Baron & Budd’s whistleblower representation team have represented dozens of clients in government fraud cases returning over $6 billion to federal and state agencies, with whistleblower recovery shares as high as 49%. They are ready to help if you have evidence of customs fraud.

Please call (866) 845-2164 or complete our contact form if you would like more information. For more information, see What You Need to Know About Becoming a Whistleblower. Please understand that contacting us does not mean that you have established an attorney-client relationship with Baron & Budd, P.C.