Joint DOJ-DHS Tariff Fraud Whistleblower Program

April 1, 2026

DOJ & DHS Announce Joint Tariff Fraud Whistleblower Program

Nick Oberheiden Oberheiden P.C. + Follow Contact LinkedIn Facebook X Send Embed

The U.S. Department of Justice (DOJ) and the U.S. Department of Homeland Security (DHS) recently announced the launch of a new initiative focused on targeting tariff evasion and other fraudulent efforts to avoid customs duties at the U.S. border. In the announcement, the DOJ and DHS encourage whistleblowers to come forward and report customs fraud through either the DOJ Criminal Division’s Corporate Whistleblower Program or qui tam lawsuits under the False Claims Act.

During the second Trump administration, the federal government is prioritizing efforts to target companies and individuals suspected of attempting to evade tariffs and otherwise violate U.S. customs laws. The DOJ is pursuing both civil and criminal enforcement action in federal court—and prosecutors are not hesitating to seek criminal penalties when warranted.

“Combating customs fraud and tariff evasion is currently among the federal government’s top law enforcement priorities. The DOJ and DHS have established a new cross-agency task force focused specifically on targeting these offenses, and they are incentivizing whistleblowers with financial rewards.” – Dr. Nick Oberheiden, Founding Attorney of Oberheiden P.C.

Financial rewards are available to eligible whistleblowers in cases initiated under the DOJ whistleblower program and in False Claims Act lawsuits. In certain circumstances, whistleblowers may be eligible to come forward (and seek financial rewards) through other means as well. Along with federal customs laws, tariff fraud can implicate various federal criminal statutes as well—and whistleblowers can receive awards for properly disclosing federal violations to any government agencies that administer whistleblower award programs.

DOJ-DHS Cross-Agency Trade Fraud Task Force to Target Fraud Involving Tariffs and Customs Duties

Late last year, the DOJ issued a press release announcing the formation of a new cross-agency Trade Fraud Task Force with DHS. As the DOJ explained in its press release:

“The Task Force will augment the existing coordination mechanisms within the Department of Justice and leverage expertise from both the Civil and Criminal Divisions, as well as the Department of Homeland Security, to aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy.”

Citing Executive Order 14243, which President Trump signed to, “enhanc[e] the Government’s ability to detect overpayments and fraud,” the DOJ’s press release states that the new cross-agency task force will, “work closely with its law enforcement partners at the Department of Homeland Security, specifically U.S. Customs and Border Protection and Homeland Security Investigations, to identify and combat trade fraud that threatens our economic and national security interests.”

With regard to trade fraud and tariff evasion specifically, the DOJ-DHS task force is targeting all forms of fraud aimed at facilitating the illegal importation of foreign goods and services. These trade enforcement efforts are intended to protect domestic industries against unfair international trade and unfair advantages gained through fraudulent efforts to reduce duties owed. Some examples of offenses that the DOJ, DHS, and U.S. Customs Officials intend to target through government investigations, civil enforcement proceedings, and criminal prosecutions include:

False Country of Origin Designations

Companies frequently use false country of origin designations in an attempt to avoid U.S. tariffs or to pay a reduced tariff rate. Such efforts clearly violate both U.S. trade policy and federal law, and intentional fraud schemes involving false country of origin designations can expose both domestic and foreign parties to prosecution in U.S. federal court.

False Statements to U.S. Customs Agents

Making false statements to U.S. customs agents or other domestic public officials can warrant civil or criminal enforcement action depending on the circumstances involved. The DOJ and DHS are putting renewed focus on this form of fraud during the second Trump administration, and we are seeing increased enforcement activity by the DOJ’s Civil and Criminal Divisions.

Underpayment of Tariffs and Customs Duties

Underpayment of tariffs or customs duties through any means is a serious federal offense. The DOJ and DHS are encouraging whistleblowers to report any efforts to underpay tariffs or customs duties, and whistleblowers who report such misconduct through the appropriate means can receive a portion of the government’s recovery in the event of a successful enforcement action.

Nonpayment of Tariffs and Customs Duties

Along with underpayment of tariffs and customs duties, the DOJ and DHS are aggressively targeting nonpayment of tariffs and customs duties as well. Here too, when whistleblowers expose wrongdoing on the government’s behalf, they are entitled to a percentage of the net proceeds forfeited in the event that the DOJ pursues a successful enforcement action or the party involved agrees to resolve allegations of wrongdoing via settlement.

Anti-Dumping Duty and Countervailing Duty Violations

Anti-dumping duties and countervailing duties are designed to help “level the playing field for U.S. manufacturers” by ensuring that underpriced foreign goods do not enter the supply chain. Evading these duties is a top enforcement priority for the DOJ and DHS as well, and whistleblowers can report these violations through False Claims Act cases or under the DOJ Criminal Division’s Corporate Whistleblower Reward Pilot Program.

DOJ Encourages Whistleblowers to Come Forward with Information About Suspected Tariff and Customs Fraud Cases

As mentioned above, coming forward under the False Claims Act or the DOJ Criminal Division’s Corporate Whistleblower Reward Pilot Program are the two primary means for whistleblowers to expose tariff and customs fraud to the federal government. But, depending on the circumstances, whistleblowers may have other options as well:

Coming Forward Under the DOJ Criminal Division’s Corporate Whistleblower Program

The DOJ Criminal Division administers a whistleblower reward program focused on corporate enforcement. Along with complaints involving allegations of money laundering, procurement fraud, violations of federal immigration laws, and other forms of corporate misconduct, the Criminal Division also accepts whistleblower complaints involving customs fraud and tariff evasion.

Under the Criminal Division’s Corporate Whistleblower Reward Pilot Program, eligible whistleblowers can receive up to 30% of the first $100 million recovered in successful enforcement proceedings, and up to 5% of the next $400 million recovered. Like other federal whistleblowers, those who come forward under the Criminal Division’s whistleblower program are entitled to strict confidentiality and anti-retaliation protections as well.

Coming Forward Under the False Claims Act

The False Claims Act prohibits domestic and foreign companies from submitting “false or fraudulent” claims for payment to the federal government. It also prohibits “reverse false claims,” which involve underpaying amounts owed.

This includes underpayment (or nonpayment) of tariffs and customs duties. To come forward under the False Claims Act, tariff fraud whistleblowers must file qui tam lawsuits in federal court. As a result, working with an experienced whistleblower attorney is strongly recommended. Successful qui tam cases can lead to treble damages and steep monetary penalties, and eligible whistleblowers are entitled to receive between 15% and 30% of the amount recovered.

Other Potential Options for Coming Forward as a Whistleblower

Along with coming forward under the DOJ Criminal Division’s Corporate Whistleblower Program and the False Claims Act, whistleblowers have a variety of other potential options for coming forward as well. While most cases of customs fraud and tariff evasion will involve one of these two options, other potential options for coming forward as a corporate whistleblower include:

U.S. Commodity Futures Trading Commission (CFTC) Whistleblower Program

The U.S. Commodity Futures Trading Commission (CFTC) accepts whistleblower complaints under the Dodd-Frank Act. This includes complaints involving corporate misrepresentations and omissions, anti-money laundering (AML) violations, and other forms of corporate misconduct.

U.S. Securities and Exchange Commission (SEC) Whistleblower Program

The U.S. Securities and Exchange Commission (SEC) also accepts whistleblower complaints involving various forms of corporate misconduct. For example, if a prospective whistleblower has information about an importer misleading investors about its revenue or costs, an SEC whistleblower complaint may be warranted.

U.S. Treasury Department Whistleblower Programs

The Internal Revenue Service (IRS) and Financial Crimes Enforcement Network (FinCEN) administer whistleblower reward programs focused on uncovering tax evasion, tax fraud, and anti-money laundering (AML) violations. In many cases, companies that have engaged in tariff or customs duty evasion will have committed tax crimes and/or AML violations as well.

Whistleblowers Can Assist with Civil and Criminal Enforcement

Under the False Claims Act, Dodd-Frank Act, and all other pertinent federal statutes, whistleblowers can assist with both civil and criminal enforcement. While voluntary self-disclosure and other proactive measures can mitigate companies’ liability in some cases, whistleblowers may be able to report any violations that are not currently known to the federal government. Whether an eligible whistleblower’s complaint leads to a successful civil or criminal enforcement action, the whistleblower is entitled to a percentage of the funds recovered.

Prospective Whistleblowers Are Eligible for a Free, Confidential Consultation and Contingency-Fee Representation

For individuals who have questions about serving as a customs duty or tariff fraud whistleblower, consulting with an experienced whistleblower attorney is the first step in the process. While hiring an attorney isn’t required, it is strongly recommended for various reasons. An experienced whistleblower attorney will be able to assess your eligibility to come forward; and, if you are eligible to come forward, your attorney will be able to communicate directly with the appropriate federal authorities on your behalf throughout the process.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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