Customs Port Shopping Fraud Defense

We Defend Importers, Customs Brokers, and Other Parties Against Allegations of Port Shopping Nationwide

Trade fraud enforcement is currently among the federal government’s top priorities. Allegations of port shopping—or trying to gain entry through one US port after being denied entry at another—can lead to swift and aggressive enforcement. Our lawyers defend importers, customs brokers, and other parties in these high-stakes customs fraud cases nationwide.

John W. Sellers — **Attorney John Sellers**
International Trade Team Lead
Former DOJ Trial Attorney

**Glenn Karabeika**
International Trade Team
Former HSI Special Agent

Port shopping violates various US customs laws. It can also violate laws such as the Food, Drug and Cosmetic Act (FDCA), and it can implicate importers’ and other parties’ compliance obligations under the Trade Agreements Act (TAA) and other federal statutes as well. As a result, facing allegations of port shopping is a serious matter that requires immediate attention and experienced legal representation.

We defend companies and individuals that are facing civil or criminal liability in federal port shopping investigations. We also provide representation for civil and criminal enforcement actions. Our international trade lawyers have extensive experience working with US Customs and Border Protection (CBP), the US Department of Justice (DOJ), and other federal authorities on behalf of our clients, and we have an extensive track record of helping our clients avoid substantial penalties.

Defense Counsel for Federal Customs Fraud Investigations Involving Alleged Port Shopping

Federal allegations of port shopping can take various forms. When facing these allegations, it is critical to quickly discern both the focus and the scope of the government’s inquiry. Some examples of common allegations in these cases include:

Attempting to bypass a US Food and Drug Administration (FDA) Import Refusal related to dangerous or adulterated goods
Switching ports in order to attempt entry with a false country of origin designation
Switching ports to submit a false customs declaration after facing antidumping or countervailing duties (AD/CVD) at a port of entry
Switching ports after encountering supply chain security or national security concerns from the US Department of Homeland Security (DHS)
Attempting to enter at a different port after using transshipment schemes to route imported goods through one or more third countries

These allegations (among others) can create substantial civil exposure for importers and other parties. As noted above, they can also lead to criminal exposure in some cases. From falsely declaring imported goods and making other false statements to CBP agents to failing to pay duties owed, targeted companies and individuals can face substantial penalties based on a wide range of specific accusations. When serving as legal counsel in these cases, we build defense strategies focused on the specific accusations at hand, and we rely on our experience to help protect our clients by all means available.

We Also Handle Other Customs Enforcement Actions

Along with handling port shopping cases, we also handle other customs-related enforcement actions. Importers and other parties targeted for alleged port shopping will often face other allegations as well; and, in these cases, asserting a comprehensive and cohesive defense is essential for achieving a favorable resolution.

Representative examples of other types of customs fraud and duty evasion cases we handle include:

Customs Entry Fraud

Customs entry fraud can involve forging entry documents, making misrepresentations during physical inspections, falsely representing international trade compliance on customs forms, and various other evasive practices. If you have been accused of submitting false papers to CBP or engaging in any other form of customs entry fraud, we can help.

Customs Duty Fraud

We can help if you are facing customs duty fraud or tariff evasion accusations as well. Each of the following can potentially be prosecuted as a federal crime depending on the circumstances involved:

Country of Origin Fraud

Submitting a false country of origin declaration to CBP to avoid duties (including AD/CVD duties) based on imported goods’ true country of origin is a clear form of customs duty fraud. In all cases, importers are required to accurately report imported goods’ true origin to CBP.

False Invoicing

False invoicing is a common tactic for avoiding customs duties. It is also a common tactic for smuggling goods into the United States. Intentional fraud and willful blindness as to the true nature or origin of imported goods can both expose importers and other parties to criminal liability.

Double Invoicing

Double invoicing is also a common tactic for attempting to avoid high tariffs or to facilitate the transshipping of goods in violation of federal law. When parties use double invoicing to evade duties, not only can they be held liable for the actual payment due, but they can also potentially face liability for treble damages (triple damages) and other penalties.

Antidumping and Countervailing Duty (AD/CVD) Fraud

Antidumping and countervailing duty (AD/CVD) fraud involves making misrepresentations to CBP in order to avoid the duties owed on various Chinese goods and goods from other countries that are subject to additional duties due to “dumping” concerns or foreign government subsidies. Engaging in port shopping to avoid AD/CVD liability can lead to significant fraud exposure.

Drawback Fraud

Drawback fraud involves improperly obtaining duty refunds when exporting imported goods. While importers must pay money owed for applicable duties when bringing goods into the country, they may be eligible for up to a 99% refund at the time of export. This provides a significant financial incentive to engage in drawback fraud—and, knowing this, CBP and the DOJ actively monitor for this type of fraudulent activity.

Free Trade Agreement (FTA) Fraud

Free Trade Agreements (FTAs) are designed to promote fair trade between member countries while disincentivizing forced labor and other abuses. CBP and the DOJ have recently prioritized FTA fraud enforcement as well—including transshipping goods (i.e., raw materials) through third countries in order for the purpose of evading federal import restrictions.

What Can (and Should) Importers and Customs Brokers Do to Avoid Penalization?

For importers, customs brokers, and other parties, avoiding penalization starts with taking a proactive approach to compliance. Proactive steps these parties can take to mitigate their risk include:

Implement Effective Compliance Policies and Procedures – Evidence that an importer or customs broker has adhered to a strong compliance framework can help protect against allegations of negligence or intentional fraud.
Proactively Managing Compliance – By exercising reasonable care with respect to customs entries, verifying supplier compliance, and conducting periodic internal audits, importers and customs brokers can strengthen their compliance documentation and position themselves to withstand federal scrutiny.
Consider Voluntary Self-Disclosure When Warranted – In appropriate cases, self-disclosure of customs violations can significantly reduce (or, in some cases, eliminate) the penalties that would otherwise be imposed. Submitting a prior disclosure to CBP can mitigate civil penalties provided that the disclosure is made before CBP opens an investigation.

If it is too late to take a proactive approach to compliance, avoiding unnecessary consequences will involve executing a proactive and strategic defense. While parties that are facing scrutiny could have various defenses available, choosing the right defenses under the circumstances at hand requires an in-depth understanding of both the relevant facts and relevant law.

Enforcement Trends: Customs Fraud is a Growing Priority for the Federal Government

Customs fraud enforcement is a growing priority for the federal government. Since the DOJ and DHS established their joint Trade Fraud Task Force in 2025, the government has reportedly secured more than $1 billion in customs fraud recoveries. This includes recoveries in customs-related FCA cases (False Claims Act cases), as well as recoveries under other federal statutes. Since the False Claims Act imposes treble damages for customs fraud in civil cases, the FCA has been a particularly potent weapon in the government’s fight against port shopping and other offenses.

FAQs: Defending Against Allegations of Port Shopping

What are some potential defenses to allegations of port shopping and other forms of customs fraud?

Some examples of potential defenses to port shopping and other forms of customs fraud include compliance, lack of intent, and good-faith reliance on professional advice (although importers cannot contract away liability for customs entry compliance). Asserting the statute of limitations for customs fraud enforcement (which is five years in many cases) can be a viable defense strategy in some cases as well. It is also important to note that merely choosing a different port is not inherently fraudulent if it is not linked to a misrepresentation.

When can port shopping lead to enforcement action under the False Claims Act?

Port shopping can lead to enforcement under the False Claims Act (FCA) when it results in the underpayment (or nonpayment) of customs duties. These cases often result from whistleblower complaints. Since whistleblowers can receive an award of 15% to 30% of the funds recovered under the FCA, employees and other individuals will often have a strong financial incentive to come forward.

What are the differences between criminal and civil False Claims Act enforcement actions?

There are two key differences between criminal and civil False Claims Act enforcement actions. In criminal cases, prosecutors must prove knowledge or intent, and potential penalties include fines and prison time. In civil cases, simply underpaying duties is enough to trigger liability, but potential penalties are exclusively financial in nature.

Speak with a Port Shopping Fraud Defense Lawyer at Oberheiden PC

To speak with an experienced port shopping fraud defense lawyer at Oberheiden PC, contact us today. Call 888-680-1745 or contact us confidentially online to arrange a free and confidential consultation.

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