Many importers assume that customs compliance issues are purely administrative and can be easily resolved. In reality, customs law and criminal law intersect far more often than most companies realize. What begins as a civil customs matter can escalate quickly into a criminal investigation when regulators suspect fraud, evasion, or willful misconduct.

When Customs Issues Cross the Line

Most customs violations start as a civil enforcement matter. Errors involving classification, valuation, country of origin, or admissibility are often addressed through a request for information (CBP 28), notice of action (CBP 29), protest, prior disclosure, or penalty proceeding. However, when patterns emerge or when agencies believe false statements or deliberate schemes are involved, the enforcement posture can change dramatically.

Federal agencies, including U.S. Customs and Border Protection (CBP), Homeland Security Investigations (HSI), and the Department of Justice (DOJ), routinely collaborate to investigate potential criminal violations tied to import activity. These investigations may focus on:

  • Undervaluation or misclassification to avoid duties
  • False statements or omissions in entry documentation
  • Evasion of import restrictions or regulatory requirements
  • Coordinated schemes involving suppliers, brokers, or intermediaries

Once criminal intent is suspected, importers may face subpoenas, search warrants, asset seizures, or even criminal charges.

Increased Focus on Enforcement

The recent volatile tariff environment has created increased incentives to cheat the system. The U.S. government has made clear that it is watching closely.

In a May 2025 memo, Matthew Galeotti, head of the DOJ’s Criminal Division, named trade and customs fraud as one of the top enforcement priorities in white-collar crime. The DOJ also expanded its Corporate Whistleblower Awards Pilot Program to include customs fraud.

DOJ has repeatedly demonstrated a willingness to criminally charge bad actors with customs fraud and has secured indictments and convictions against several importers.

While CBP hasn’t issued a formal enforcement priorities memo like the DOJ, its recent public messaging leaves no room for doubt. In May 2025, the agency warned the pharmaceutical industry that undervaluing goods amounts to trade evasion. Additionally, a LinkedIn post from the agency stated: “CBP targets and combats duty evasion at every level. Make no mistake – bad actors violating U.S. trade law will be identified, investigated, and punished to the fullest extent of the law.”

Learn More: Upcoming Webinar on Customs Enforcement and Criminal Risk

DTL President Jennifer Diaz and Of Counsel Rick Quinn will explore these issues in an upcoming webinar. Join us on February 25 for a live webinar, “Customs & Criminal Law – Case Study: Tobacco.”

This webinar takes a deep dive into the intersection of customs enforcement and criminal law through the lens of a real-world tobacco-related case study. Tobacco imports are subject to some of the most complex, highly regulated, and heavily enforced rules in international trade.

Presenters will discuss:

  • Overview of tobacco import regulations and why the product category carries heightened enforcement risk
  • How CBP identifies irregularities and the roles of key agencies in enforcement actions
  • The escalation pathway from civil customs violations to criminal investigations
  • Common compliance failures in tobacco imports and how importers can avoid them
  • Strategies for mitigating exposure
  • Practical lessons learned for importers and trade professionals handling high-risk commodities

Who should attend?

  • Importers
  • Manufacturers
  • Customs Brokers
  • Regulatory Affairs Professionals
  • In-house Legal Counsel
  • Product Development Managers
  • Others interested in FDA

REGISTER HERE.

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