Overview
We live in a global economy with goods shipped around the world. The shipment of goods into and out of the United States is subject to various customs laws, and the violation of customs laws may give rise to a False Claims Act case, which imposes significant fines and penalties on the violator.
Like all False Claims Act cases, a whistleblower who comes forward to report customs fraud may be entitled to a share of the government’s financial recovery. Our customs fraud lawyers have represented whistleblowers in cases involving customs fraud involving misclassification of imported goods, transshipment, and marking violations.
Customs fraud often includes misrepresentations about the quantity or nature of goods imported into the United States, so that the importer pays less in customs duties. Other types of customs fraud include: false declarations to the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) to avoid paying anti-dumping and customs duties, fraudulent invoicing, or under-representing the weight of shipments.
The federal government has been pursuing allegations of customs fraud under the False Claims Act with increasing vigilance.
“The nation’s customs laws are designed to protect domestic manufacturers from unfair competition abroad,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
What Forms of Customs Fraud Can Give Rise to a False Claims Act Case?
The shipment of goods into and out of the United States is subject to various customs laws, and the violation of customs laws may give rise to a FCA case. Common examples of customs fraud include:
- Undervaluation of goods to reduce duties.
- Misclassification of goods to avoid tariffs.
- Smuggling goods into or out of the country.
- Falsifying import or export documents.
- Evading quotas or embargoes.
Any company that imports or exports goods into or out of the United States can commit customs fraud. Whistleblowers in these cases are typically employees or former employees of the importer or exporter.
While FCA customs fraud cases cover a wide range of misconduct, it’s also important to understand what misconduct would be unlikely to lead to a successful FCA case. A good-faith disagreement over the proper valuation or classification of goods, where there is a reasonable basis for the importer’s position, is not customs fraud. Additionally honest mistakes and isolated compliance issues that are not indicative of a systemic scheme typically do not form the basis for FCA cases.
Protection for Reporting Customs Fraud
Reporting fraud requires courage, and whistleblowers deserve robust protection for reporting customs fraud. The False Claims Act provides comprehensive safeguards for individuals who come forward with information about customs violations.
Legal Protections Include:
- Anti-retaliation provisions that prohibit employers from firing, demoting, or harassing whistleblowers
- Confidentiality measures to protect the whistleblower's identity during investigations
- Employment safeguards, including potential reinstatement and back pay if retaliation occurs
- Right to legal representation by experienced customs fraud whistleblower lawyers
Our customs fraud lawyers ensure you understand these protections and work diligently to enforce them if violations occur. We maintain strict confidentiality and provide guidance on how to document and report customs fraud safely while minimizing personal risk.
Why Choose Our Customs Fraud Whistleblower Lawyers
Goldberg Kohn's customs fraud lawyers bring specialized experience in customs and international trade law combined with deep knowledge of whistleblower protections:
- Customs expertise: Understanding of CBP regulations, tariff classifications, and import/export requirements
- Proven track record: Success in customs fraud cases involving major importers and manufacturers
- Comprehensive protection: Full protection for reporting customs fraud from initial consultation through case resolution
- Confidential process: Secure handling of sensitive customs fraud information and whistleblower identity
When you work with our customs fraud whistleblower lawyers, you gain advocates who understand both the technical aspects of customs violations and the legal protections available to those who report them.
Contact the Customs Fraud Lawyers at Goldberg Kohn
If you suspect customs fraud, or would like to discuss a possible False Claims Act case, contact us online to schedule a free, confidential appointment with one of our experienced customs fraud whistleblower lawyers.