Fighting Trade Cheats Act of 2026

This bill would increase the maximum civil penalties for fraudulent and grossly negligent customs violations, raising the potential fines to three times the domestic value of the merchandise. It proposes to ban individuals and their affiliates from importing goods into the United States for five years following a fraudulent violation or two years following a grossly negligent violation. Additionally, the legislation would establish a private right of action for parties affected by customs fraud and prohibit violators from participating in the Importer of Record program.

This bill affects individuals and entities that commit fraudulent or grossly negligent violations of U.S. customs laws, as well as their affiliated persons such as family members or employees. U.S. Customs and Border Protection is impacted through requirements to revoke importer of record numbers and manage participation in the Importer of Record program. Additionally, interested parties such as domestic manufacturers are affected by the establishment of a private right of action to seek recourse for customs fraud.

• Increased civil penalties for customs fraud and gross negligence. The bill raises the maximum civil penalty for fraudulent violations to three times the domestic value of the merchandise and increases penalties for grossly negligent violations to the lesser of three times the domestic value or ten times the applicable duties and taxes.
• Importation bans for violators and affiliates. Individuals or entities found to have committed fraudulent violations are prohibited from importing merchandise for five years, while those committing grossly negligent violations face a two-year ban; these prohibitions also apply to affiliated persons such as family members or employees.
• Exclusion from the Importer of Record program. The bill bars violators and their affiliates from participating in U.S. Customs and Border Protection's Importer of Record program and requires the revocation of their importer of record numbers.
• Private right of action for affected parties. The legislation establishes a legal mechanism allowing interested parties, such as domestic manufacturers, to pursue private civil action if they are affected by customs fraud or grossly negligent violations.

This bill amends the Tariff Act of 1930 to increase maximum civil penalties for fraudulent and grossly negligent customs violations and modifies enforcement protocols within U.S. Customs and Border Protection's Importer of Record program.

The bill aims to strengthen the enforcement of U.S. customs laws by increasing financial penalties and establishing stricter prohibitions for entities that engage in fraudulent or grossly negligent trade practices. It seeks to deter customs fraud through multi-year importation bans for violators and their affiliates, while providing affected parties with a private right of action to seek legal redress.