CBP Uncovers Over $400 Million in Duty Evasion

CBP Trade RSS

Filed August 15th, 2025

Detected March 1st, 2026

Summary

U.S. Customs and Border Protection (CBP) announced two major trade enforcement actions under the Enforce and Protect Act (EAPA), uncovering over $400 million in unpaid trade duties. The largest case involved 23 U.S. importers and identified over $250 million in owed revenue from goods transshipped through third countries.

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What changed

CBP has announced significant trade enforcement successes under the Enforce and Protect Act (EAPA), uncovering more than $400 million in unpaid duties from duty evasion schemes. The largest investigation, involving 23 U.S. importers and a network of shell companies, identified over $250 million in owed revenue from goods illegally transshipped through Indonesia, South Korea, and Vietnam to evade antidumping and countervailing duties (AD/CVD). This marks the largest EAPA case in CBP's history, exposing companies that undercut American industries and workers.

Regulated entities, particularly importers and exporters, should be aware of CBP's intensified enforcement under EAPA. Companies involved in international trade, especially those dealing with goods subject to AD/CVD, must ensure their supply chains are compliant and that goods are not being illegally transshipped to disguise their origin. Failure to comply can result in significant financial penalties, including the recovery of unpaid duties. CBP encourages the reporting of suspected trade violations through its online portal.

What to do next

Review supply chain compliance for potential duty evasion schemes.
Ensure accurate declaration of goods' origin to avoid illegal transshipment.
Report suspected trade violations to CBP.

Penalties

Recovery of unpaid trade duties exceeding $400 million, with over $250 million identified in the largest case.

Source document (simplified)

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CBP uncovers more than $400 million in duty evasion by bad actors who undercut American workers

CBP uncovers more than $400 million in duty evasion by bad actors who undercut American workers

Release Date Fri, 08/15/2025 CBP investigated its largest EAPA case ever, worth more than $250 million in revenue

WASHINGTON – U.S. Customs and Border Protection (CBP) today announced two major trade enforcement wins under the Enforce and Protect Act (EAPA), which authorizes CBP to investigate and stop duty evasion schemes like illegal transshipment. These wins delivered a decisive blow to bad actors using unfair trade practices to undercut American workers and industries.

From January 20 to August 8, 2025, CBP uncovered more than $400 million in unpaid trade duties through EAPA investigations — a key tool to stop illegal transshipment and other schemes designed to cheat the system. In that same period, CBP identified 89 cases with reasonable suspicion of duty evasion.

“CBP’s EAPA program is a critical component of our trade enforcement efforts. We’re working tirelessly to prevent evasion and ensure a level playing field for U.S. companies,” said Rodney Scott, CBP Commissioner. “Our mission, under the leadership of President Trump, is to support economic fairness, protect domestic industry, and uphold the integrity of U.S. supply chains.”

EAPA exposes companies that dodge antidumping and countervailing duties (AD/CVD) — trade measures that prevent foreign producers from flooding U.S. markets with goods sold below fair value or propped up by unfair subsidies. Companies often try and circumnavigate duties by using illegal transshipment, routing goods through third countries to disguise origin and sidestep duties.

CBP’s also investigated the largest EAPA case in its history — a sweeping investigation into 23 U.S. importers and a network of Chinese shell companies funneling goods through Indonesia, South Korea, and Vietnam. Uncovered on May 29, 2025, the scheme identified more than $250 million in revenue owed — a figure expected to rise as the probe expands.

“Never before has CBP identified this many importers evading AD/CVD in a single consolidated EAPA investigation,” said Susan S. Thomas, acting Executive Assistant Commissioner for CBP’s Office of Trade. “The revenue identified for collection exceeds $250 million, but this figure may increase as we uncover additional importers in the scheme.”

CBP’s enforcement teams carried out port inspections, analyzed trade data, and conducted on-the-ground verifications in Indonesia and Taiwan. Every importer investigated was found in violation, more companies were exposed, and new evasion tactics uncovered.

CBP will continue to pursue EAPA violators, dismantle transshipment networks, and safeguard U.S. supply chains. Results of this and other EAPA investigations are available on the EAPA website. Additionally, the public can report suspected trade violations at eallegations.cbp.gov.

For more on CBP’s trade enforcement work, visit CBP.gov/Trade and follow @CBPTradeGov on X.

For more on CBP’s trade enforcement work, visit **** CBP.gov/Trade and follow @CBPTradeGov on X.

U.S. Customs and Border Protection (CBP) is America's frontline: the nation's largest law enforcement organization and the world's first unified border management agency. The 67,000+ men and women of CBP protect America on the ground, in the air, and on the seas. We enforce safe, lawful travel and trade and ensure our country's economic prosperity. We enhance the nation's security through innovation, intelligence, collaboration, and trust.