New DOJ-DHS Trade Fraud Task Force to Target Tariff and Customs Duty Fraud in 2026—Seeks Whistleblowers

The U.S. Department of Justice (DOJ) has announced the formation of a new cross-agency task force with the U.S. Department of Homeland Security (DHS). This new Trade Fraud Task Force is specifically targeting customs duty and tariff evasion—including tariff evasion both related and unrelated to the tariffs imposed during the second Trump administration.

According to the DOJ’s announcement, the Trade Fraud Task Force is focused on, “holding parties accountable for their attempts to undermine honest American competitors.” This includes “ensuring compliance with . . . payment of all applicable tariffs and duties, such as antidumping and countervailing duties and Section 301 tariffs intended to level the playing field for U.S. manufacturers.” The DOJ is prepared to pursue both civil and criminal enforcement as warranted.

Trade Fraud Task Force “Welcome[s] the Vital Contributions of Whistleblowers”

While the Trade Fraud Task Force is aggressively targeting organizations and individuals suspected of customs duty and tariff evasion, it is also relying on whistleblowers to come forward. In its announcement, the DOJ notes that the task force, “welcome[s] the vital contributions of whistleblowers who can help identify fraud schemes involving an array of imported products.” The DOJ encourages whistleblowers to come forward through two primary means:

1. The DOJ Criminal Division’s Corporate Whistleblower Program

The DOJ Criminal Division established a Corporate Whistleblower Award Pilot Program (the “Corporate Whistleblower Program”) in 2024. Under this program, the Criminal Division is seeking information about certain forms of corporate misconduct, including customs duty and tariff evasion.

Individuals who have information about nonpayment of customs duties, underpayment of tariffs through false country-of-origin marks, and other similar forms of fraud may be eligible to come forward under the Corporate Whistleblower Program. Those who are eligible must complete the Criminal Division’s submission form and submit it through the appropriate means. While the submission form is available online, prospective whistleblowers need to assess their eligibility before coming forward. This involves consulting with an experienced federal whistleblower lawyer who can proactively communicate with the DOJ as necessary.

Under the Corporate Whistleblower Program, whistleblowers who expose suspected customs duty or tariff evasion are entitled to strict confidentiality. Federal law also strictly prohibits employers from retaliating against whistleblowers should they discern a whistleblower’s identity. If a submission under the Corporate Whistleblower Program leads to a successful enforcement action, the whistleblower is also entitled to an award calculated as follows:

• Up to 30% of the first $100 million in net proceeds forfeited; and,
• Up to 5% of any net proceeds forfeited between $100 million and $500 million.

Our lawyers assist customs duty and tariff whistleblowers with coming forward under the DOJ Criminal Division’s Corporate Whistleblower Program. Once you get in touch, our lawyers will be able to assess whether you are eligible to submit a case under the program, or whether you may be better off filing a qui tam lawsuit under the False Claims Act.

2. Qui Tam Lawsuits Under the False Claims Act

The second option for exposing customs duty and tariff fraud to the federal government is filing a qui tam lawsuit under the False Claims Act. The False Claims Act’s qui tam provisions allow individuals to file lawsuits on the government’s behalf in cases involving “false and fraudulent claims.”

In cases of customs duty and tariff evasion, this includes “reverse false claims.” While a standard False Claims Act case involves fraudulently seeking payment from the federal government, a “reverse” case involves underpaying amounts owed under federal law. If an organization in the U.S. or abroad underpays customs duties or tariffs, the government can use the False Claims Act to seek not only proper payment, but also treble damages (three times the amount owed) and additional civil or criminal penalties.

“Qui tam” roughly translates to, “on behalf of.” In the context of a qui tam litigation under the False Claims Act, it refers to filing a lawsuit for submitting a false or fraudulent claim to the federal government. In False Claims Act cases, whistleblowers file lawsuits in federal court, and then the DOJ investigates the allegations in the lawsuit before deciding whether to intervene.

Similar to the DOJ Criminal Division’s Corporate Whistleblower Program, the False Claims Act includes provisions for confidentiality, protection against retaliation, and whistleblower compensation. Whistleblower awards under the False Claims Act are generally calculated as follows:

• 15% to 25% of the amount recovered if the DOJ intervenes; and,
• 25% to 30% of the amount recovered if the DOJ declines to intervene.

Under both the Corporate Whistleblower Program and the False Claims Act, the DOJ considers several factors when determining specific award amounts. These include the amount of information the whistleblower provides initially and the whistleblower’s level of additional assistance during the DOJ’s investigation, among others. If a whistleblower participated in the customs duty or tariff evasion he or she discloses, this can reduce the amount of the whistleblower’s award, but awards in these cases can still be substantial.

Examples of Customs Duty and Tariff Evasion Whistleblowers Can Disclose to the Trade Fraud Task Force

Efforts to evade U.S. customs duties and tariffs can take many different forms. Whistleblowers can report all forms of suspected customs duty and tariff evasion—and they do not need to have indisputable proof to come forward.

Qualifying as a whistleblower involves coming forward with credible information that warrants a federal investigation (or, in some cases, that furthers an ongoing federal investigation). Fully exposing large-scale fraud requires the DOJ’s and DHS’s extensive resources, and whistleblowers’ role is to inform the DOJ and DHS where their resources are needed. Prospective whistleblowers must be careful about taking or copying sensitive records from their employers’ facilities and systems as well, and this is another area where relying on the advice of an experienced federal whistleblower attorney is critical.

With this in mind, whistleblowers can report all forms of suspected customs duty and tariff evasion to the Trade Fraud Task Force, whether through the DOJ Criminal Division’s Corporate Whistleblower Program or under the False Claims Act. This includes, but is not limited to:

• Underpayment of customs duties
• Underpayment of tariffs
• Nonpayment of customs duties or tariffs
• Misclassification of goods under the Harmonized Tariff Schedule (HTS)
• Misrepresentation of country of origin (including rerouting through third countries)
• Fraud involving antidumping duties and countervailing duties
• Falsifying invoices and other records to substantiate false customs duty and tariff claims

These are all prevalent issues that cost the U.S. government billions of dollars annually. Again, the Trade Fraud Task Force is targeting these (and other) forms of customs duty and tariff evasion specifically, and it is strongly encouraging whistleblowers to come forward and expose what they know.

5 Steps to Take if You Have Information for the DOJ-DHS Trade Fraud Task Force

If you believe you may have information that the DOJ-DHS Trade Fraud Task Force could use to pursue civil or criminal charges, you should take the following steps to make an informed decision about whether (and how) to come forward.

1. Preserve Any Records You Have in Your Possession

You should preserve any relevant records you currently have in your possession. As we said above, you should consult with a lawyer before taking or copying any additional records or files from your employer. Doing so could be risky, and the DOJ will be able to seek to obtain relevant records through subpoenas and other formal legal means.

2. Take Detailed Notes

You should take detailed notes about why you suspect customs duty or tariff evasion. To help you make an informed decision about whether to come forward, your lawyer will need as many details as possible. Your lawyer will keep all information you share strictly confidential.

3. Schedule a Confidential Consultation with a Federal Whistleblower Lawyer

A lawyer who is experienced in representing federal whistleblowers will be able to assess your eligibility to come forward under the DOJ Criminal Division’s Corporate Whistleblower Program and the qui tam provisions of the False Claims Act.

4. Work with Your Lawyer to Thoroughly Evaluate Your Options

You should work with your lawyer to thoroughly evaluate your options. If you are eligible to serve as a customs duty or tariff fraud whistleblower, it will be critical to ensure that you come forward through the appropriate means.

5. Prioritize Making Your Decision as Efficiently as Possible

While you shouldn’t rush your decision, you should prioritize making your decision as efficiently as possible. Not only must whistleblowers generally be the first to come forward, but unnecessary delays could also compromise the Trade Fraud Task Force’s investigation.

Talk to a Federal Whistleblower Lawyer About Contacting the Trade Fraud Task Force

If you are interested in learning more about exposing customs duty or tariff evasion to the Trade Fraud Task Force, we encourage you to contact us promptly. Call 888-680-1745 or tell us how we can reach you online to speak with one of our senior federal whistleblower lawyers in strict confidence as soon as possible.