On June 3, 2026, the Trump Administration issued an Executive Order on “Strengthening Customs Enforcement,” a significant escalation in the federal government’s effort to police trade fraud and duty evasion. The Order focuses first on accountability: importers of record would face stricter bonding, asset, ownership-disclosure, and “good standing” requirements, making it harder for shell companies or foreign entities with few U.S. assets to import goods, evade duties, and disappear. It also directs CBP to require more detailed supply-chain disclosures and certifications, giving the government more information to test whether goods are being undervalued, misclassified, illegally transshipped, produced with forced labor, or otherwise entered in violation of U.S. law. Just as important, the Order calls for increased audits, tougher penalties, reduced mitigation for repeat offenders, and greater enforcement transparency. In short, the Administration is telling importers, brokers, and foreign suppliers that customs compliance is not a paperwork exercise—it is an enforcement priority.
The Executive Order fits a larger pattern. DOJ and DHS launched a cross-agency Trade Fraud Task Force in 2025 to pursue customs violations through the Tariff Act, the False Claims Act, and, when appropriate, parallel criminal tools. DOJ’s recent enforcement record shows why this matters. In the past two years, customs-related FCA resolutions and announcements have included:
Whistleblower Partners has seen the same problem up close. Our attorneys represented the whistleblower in the $7.6 million Alexis LLC customs fraud settlement, where the government alleged that a luxury womenswear importer underreported garment value, including through double invoicing and failure to account for assists. Our attorneys also represented a whistleblower in an $8 million settlement involving alleged misclassification of imported brake pads, and in a luxury knitwear matter involving alleged shipment-splitting to avoid duties.
Whistleblowers are critical because customs fraud is often engineered to look routine on paper. The government sees entry summaries, invoices, and tariff classifications. The paper looks in order. But insiders and knowledgeable competitors may see the hidden truth: the second invoice, the real manufacturer, the side agreement, the sham product description, or the transshipment route. Without that information, many schemes remain buried in the volume and complexity of global trade.
Individuals with evidence of undervaluation, misclassification, false country-of-origin claims, transshipment, or other duty-evasion schemes should speak with experienced counsel. Contact Whistleblower Partners for a confidential consultation.
