Compliance Mistakes Can Turn Criminal: Don’t Let This Happen to You
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
