In late 2025, the U.S. Department of Justice (DOJ) and U.S. Department of Homeland Security (DHS) established a cross-agency Trade Fraud Task Force focused on uncovering efforts to evade customs duties and other suspected trade violations. The Trade Fraud Task Force is focused on targeting companies that use fraudulent means to avoid paying customs duties and tariffs, including (but not limited to) tariffs imposed during the second Trump administration.
It is also encouraging whistleblowers to come forward.
Under the False Claims Act and other federal laws, whistleblowers who report customs fraud and tariff evasion can receive financial rewards when their reports lead to successful enforcement actions. The Trade Fraud Task Force is promoting the availability of whistleblower awards in these cases, and it is accepting complaints involving all types of fraudulent schemes involving tariffs and customs duties owed in relation to imported goods and services.
“The DOJ-DHS Trade Fraud Task Force is targeting companies seeking to gain an unfair advantage by fraudulently avoiding customs duties and tariffs on imported goods and services. Eligible whistleblowers who report customs duty and tariff fraud can receive substantial monetary rewards when their reports lead to successful enforcement actions.” – Dr. Nick Oberheiden, Founding Attorney of Oberheiden P.C.
Prospective whistleblowers who are prepared to report tariff fraud schemes and other violations of U.S. customs laws may have multiple options for coming forward. Making an informed decision about how to come forward is essential, and prospective whistleblowers should work with an experienced whistleblower attorney to make an informed decision as efficiently as possible. While whistleblowers can provide information in support of an ongoing investigation in some cases, whistleblowers must generally be able to come forward with information that demonstrates a government investigation is warranted.
Whistleblowers Can Report Fraud Involving Tariffs and Customs Duties to the DOJ
The DOJ’s Criminal Division accepts whistleblower complaints involving customs duties and tariffs owed under its Corporate Whistleblower Reward Program. It accepts complaints involving all goods imported into the United States and all forms of fraud. This includes (but is not limited to):
Underpayment and Nonpayment of Import Tariffs
Whistleblowers can report underpayment and nonpayment of all federal import tariffs. This includes tariffs imposed under the Harmonized Tariff Schedule, anti-dumping duties and countervailing duties (which are designed to offset foreign government subsidies), and tariffs imposed during the second Trump Administration. These tariffs are intended to protect domestic industries from unfair competition; and, when importers engage in fraudulent practices to evade tariffs or pay reduced tariff rates, they can—and should—be held accountable.
Country of Origin Fraud
One way importers seek to avoid and underpay tariffs is by misrepresenting the country of origin of imported goods. In some cases, this involves routing goods through third countries. In others, it involves submitting forged or altered invoices that state the wrong country of origin. In all cases, companies that engage in country of origin fraud can face steep monetary sanctions, and whistleblowers may be entitled to receive a portion of the monetary sanctions collected.
False Statements to U.S. Customs and Border Protection
Like false country of origin designations, making false statements to U.S. customs officials is another common form of fraudulent conduct that companies use to evade federal customs duty and tariff responsibilities. Knowingly making false statements to federal agents is a criminal offense, and successful whistleblowers who report false statements can receive monetary awards as well. This is true whether the government’s case leads to the recovery of unpaid duties, criminal fines, or any other form of financial recovery.
Whistleblowers Can File Customs Fraud Cases Under the False Claims Act
Along with filing whistleblower complaints under the DOJ Criminal Division’s Corporate Whistleblower Program, whistleblowers can also file customs fraud cases under the False Claims Act in many cases. These cases involve “reverse false claims,” or efforts to avoid paying the federal government instead of efforts to fraudulently obtain funds from a government agency.
Filing a False Claims Act lawsuit is a complex process. However, the False Claims Act’s prohibitions are clear, and the False Claims Act is one of the strongest whistleblower protection and whistleblower reward laws in the country. Whistleblowers who successfully report tariff evasion and other forms of corporate misconduct are generally entitled to between 15% and 30% of any government recovery resulting from the lawsuits they file on the government’s behalf. This includes any net proceeds forfeited as well as treble damages and civil or criminal monetary penalties.
Whistleblowers Can Report Other Violations to the Federal Government Through Various Means
While most tariff fraud whistleblowers will need to come forward through one of the two means discussed above, potential whistleblowers should give due consideration to their other options as well. For example, depending on the specific nature of the violation a potential whistleblower is prepared to disclose, coming forward may also involve filing a complaint under one of the following:
Financial Crimes Enforcement Network (FinCEN) Whistleblower Program
The Financial Crimes Enforcement Network (FinCEN) accepts whistleblower complaints involving anti-money laundering (AML) violations and violations of Office of Foreign Assets Control (OFAC) sanctions. Cases involving customs duty and tariff evasion may involve AML or OFAC sanctions violations as well.
Internal Revenue Service (IRS) Whistleblower Program
The Internal Revenue Service (IRS) accepts whistleblower complaints involving all forms of tax evasion and tax fraud. If a company is underpaying its federal tariff liability, it may be underpaying its federal tax liability as well.
U.S. Commodity Futures Trading Commission (CFTC) Whistleblower Program
The U.S. Commodity Futures Trading Commission (CFTC) accepts whistleblower complaints involving violations of the Commodity Exchange Act and Dodd-Frank Act. Fraud involving imported goods can directly or indirectly implicate both of these statutes in various ways.
U.S. Securities and Exchange Commission (SEC) Whistleblower Program
The U.S. Securities and Exchange Commission (SEC) accepts whistleblower complaints involving violations of federal securities laws and regulations. If importers or other companies misrepresent their revenue or the legality of their tariff-related practices, this could also warrant a whistleblower complaint.
Whistleblower Protection Act (WPA) Complaints for Federal Employees
Federal employees can report all forms of fraud, waste, and abuse under the Whistleblower Protection Act. Last year, the Office of Special Counsel (OSC) instituted a new policy, “encouraging agencies to provide monetary rewards . . . to federal employees who blow the whistle and successfully uncover wrongdoing within [the] federal government.” This includes accepting bribes and other corrupt practices related to tariffs and customs enforcement.
Financial Awards in DOJ Whistleblower Program and False Claims Act Cases Involving Customs Duty and Tariff Fraud
Eligible whistleblowers who report tariff evasion or customs duty fraud to the DOJ are entitled to monetary awards when their reports lead to successful enforcement actions. This is true whether they come forward under the Criminal Division’s Corporate Whistleblower Program or the False Claims Act. Whistleblower awards in these cases are calculated as follows:
- DOJ Criminal Division Corporate Whistleblower Program – Eligible whistleblowers can receive up to 30% of the first $100 million recovered and up to 5% of funds recovered between $100 million and $500 million.
- Qui Tam Lawsuits Under the False Claims Act – Eligible whistleblowers can receive 15% to 25% of the funds recovered if the DOJ intervenes, and 25% to 30% of the funds recovered if the DOJ declines to intervene.
To maximize their award eligibility, whistleblowers can ensure that they provide as much original information as possible, and they can continue to play an active role throughout the investigative process. While not legally required, working with an experienced whistleblower attorney who can file your complaint and communicate with the DOJ on your behalf is strongly recommended.
Financial Awards in Other Federal Whistleblower Cases
Financial awards are also available under the other federal whistleblower programs discussed above. Generally, awards under these programs are calculated as between 10% and 30% of the amount recovered, with a minimum $1 million recovery required in some cases. Here too, an experienced whistleblower attorney can help, and potential whistleblowers can get started by scheduling a free and confidential consultation.
How to Come Forward as a Tariff Evasion or Customs Fraud Whistleblower
For individuals who are prepared to disclose customs fraud or tariff evasion to the federal government, coming forward starts with making an informed decision about which avenue to pursue. As discussed above, customs fraud and tariff evasion whistleblowers will need to come forward under the DOJ Criminal Division’s Corporate Whistleblower Program or the False Claims Act in most cases.
These are very different means of coming forward; and, to establish their eligibility for a financial award, whistleblowers must strictly comply with all applicable substantive and procedural requirements. An experienced whistleblower attorney can help here as well.
Hiring an experienced whistleblower attorney should not cost anything out-of-pocket. Prospective whistleblowers should be able to obtain the legal advice they need to make informed decisions for free; and, if they commit to coming forward, they should be able to engage legal counsel on a contingency-fee basis. This means that their attorney’s legal fees, if any, will be calculated as a percentage of their whistleblower award if their case is successful.
