Key facts
- The Department of Justice is creating a new global trade enforcement section of its National Fraud Division.
- The unit will investigate and prosecute criminal import, trade, and customs fraud.
- This marks a shift from administrative fines to criminal prosecutions for import violations.
- The DOJ and DHS's Trade Fraud Task Force has recovered over $1 billion since August 2025.
- Two Chicago-based gold jewelry import cases were announced, involving $933 million in falsely declared imports and $51.6 million in evaded duties.
The Department of Justice announced on Tuesday the establishment of a new global trade enforcement section within its National Fraud Division. This unit is designed to investigate and prosecute criminal offenses related to import, trade, and customs fraud. The move signifies a strategic shift by federal agencies from relying on administrative fines for import violations to pursuing criminal prosecutions.
Since the launch of the DOJ and Department of Homeland Security's Trade Fraud Task Force in August 2025, these agencies have collectively achieved over $1 billion in civil and criminal recoveries, penalties, forfeitures, and publicly charged losses. The new trade fraud unit's mandate includes investigating and prosecuting criminal schemes involving the illegal importation of goods that contravene U.S. product safety and anti-forced labor laws, as well as instances where import values or other information are misrepresented to evade tariffs.
Assistant Attorney General Colin McDonald emphasized the seriousness of trade fraud, stating, "For too long, fraud actors have viewed customs violations as a mere surcharge or cost of doing business. By utilizing the Department’s full weight, we are making it clear that trade fraud is a serious economic crime." The announcement was made at a U.S. Customs and Border Protection inspection warehouse near Chicago's O'Hare International Airport, amidst confiscated illegal vaping devices and drones.
In conjunction with the announcement, the U.S. Attorney's Office for the Northern District of Illinois revealed criminal charges in two separate gold jewelry import cases based in Chicago. Defendants in these cases are accused of falsely declaring the country of origin to evade tariffs. The combined import value of the jewelry in these cases was $933 million, with an estimated $51.6 million in customs duties avoided.