This bill cracks down on companies that cheat on customs rules when importing goods into the United States. Right now, if a company lies about what it's importing or hides information from customs officials, the penalties aren't very strong. This bill makes those penalties much tougher and gives more people the power to fight back against cheaters.

Here's what changes: If a company commits customs fraud, it now faces penalties of three times the value of the goods involved (instead of just the value itself), and it gets banned from importing anything for five years. If a company is grossly negligent (reckless but not intentionally dishonest), the penalty is also three times the value, and they're banned for two years. The bill also targets companies that try to dodge these rules by using fake business partners—if one company in a group gets caught cheating, the other companies in that group are presumed to know about it.

Perhaps most importantly, the bill lets American businesses, workers, and trade groups sue importers directly if they've been harmed by customs cheating. They can recover money for their losses plus triple damages, plus attorney's fees. This gives domestic companies a powerful tool to protect themselves without waiting for government action. The government can also jump into these lawsuits to help enforce the rules.

Fighting Trade Cheats Act of 2026

Britt, Katie Boyd

Fighting Trade Cheats Act of 2026This bill increases penalties for, and establishes additional enforcement mechanisms related to, fraudulent and grossly negligent violations of U.S. customs laws.Specifically, the bill increases the maximum civil penalty for a fraudulent violation to three times the domestic value of the merchandise. (Currently, the maximum penalty is the domestic value of the merchandise.) It prohibits a person who commits a fraudulent violation from importing merchandise into the United States for a five-year period.Additionally, the bill increases the maximum civil penalty for a grossly negligent violation to the lesser of (1) 3 times the domestic value of the merchandise; or (2) 10 times the lawful duties, taxes, and fees. (Currently, the maximum penalty is the lesser of the domestic value of the merchandise or four times the lawful duties, taxes, and fees.) It prohibits a person who commits a grossly negligent violation from importing merchandise into the United States for a two-year period.Further, the bill applies these importation bans to an affiliated person (e.g., a family member or employee) of the person who committed the fraudulent or grossly negligent violation.The bill establishes a private right of action for an interested party (e.g., a manufacturer) affected by customs fraud or grossly negligent violations.The bill prohibits any person (or an affiliated person) who commits a fraudulent or grossly negligent violation from participating in the U.S. Customs and Border Protection's Importer of Record program, and further requires revocation of their importer of record numbers.