WASHINGTON, D.C. — A bill that would increase civil penalties for, and improve enforcement with respect to, customs fraud, was recently introduced in the Senate.
The Fighting Trade Cheats Act of 2023, introduced by Sens. Sherrod Brown (D-Ohio) and Thom Tillis (R-N.C.), would:
- Increase civil penalties for fraudulent and grossly negligent violations of United States customs laws.
- Allow private companies to sue foreign producers that harm American companies.
- Exclude persons that have committed fraudulent or grossly negligent violations of United States customs laws from participation in the importer of record program.
The bill was introduced in the Senate Finance Committee.
Increased civil penalties
The bill would increase civil penalties for fraudulent and grossly negligent violations of United States customs laws. Currently, the maximum civil penalty for a fraudulent violation is $10,000. The bill would increase this penalty to $50,000 for the first violation and $100,000 for any subsequent violations. The maximum civil penalty for a grossly negligent violation would be increased from $5,000 to $25,000 for the first violation and $50,000 for any subsequent violations.
Private enforcement
The bill would allow private companies to sue foreign producers that harm American companies through customs fraud. Currently, only the United States government can sue for customs fraud. The bill would allow private companies to sue foreign producers for damages if they can prove that the foreign producer’s actions caused them to lose money.
Exclusion from the importer of record program
The bill would exclude persons that have committed fraudulent or grossly negligent violations of United States customs laws from participation in the importer of record program. The Importer of Record program is a program that allows businesses to file customs declarations on behalf of other businesses. The bill would prevent businesses that have been convicted of customs fraud from participating in this program.
Conclusion
The Fighting Trade Cheats Act of 2023 is a bill that would increase civil penalties for, and improve enforcement with respect to, customs fraud, and for other purposes. The bill would make it more difficult for foreign companies to cheat the system and would help to protect American jobs and businesses.
