The U.S. Customs and Border Protection (CBP) is a federal law enforcement agency charged with regulating and facilitating international trade and is charged with collecting import duties, and enforcing U.S. regulations, including trade, customs, and immigration. When companies seek to import goods into the U.S. they typically have to pay a government imposed charged called a duty.  Companies that engage in conduct designed to avoid paying custom duties and charges, is coming a fraud against the federal government.  The False Claims Act now presents a new approach to combating customs violations that are difficult for federal customs agents to catch.  Common customs fraud cases that have been the subject of False Claims Act liability all have in common is a scheme to prevent or reduce the amount of customs duties paid to the federal government.  Following are common types of customs fraud that are the subject of False Claims Act liability.

1. Undervaluation of goods upon entry into a customs territory

These types of customs fraud seek to underpay the government for customs duties by under reporting the stated weight of the imported goods to avoid customs duties.  Another customs fraud is understating the value of the good imported and maintaining separate books, one for the customs agents and another for the business. 

2. Inaccurate country of origin marking

These types of customs fraud seek to avoid paying customs duties imposed to prevent dumping on the United States market.  Common types of fraud are mislabeling the origin of apparel or food products.

3. Misclassification of goods

These types of customs fraud deal with the misclassification of the type of product to avoid customs duties.

4. Failure to pay anti-dumping or countervailing duties

These types of customs fraud deal with importers manipulating the origin of the product by shipping the goods through another country and claiming that other country as the origin of the products to avoid antidumping and customs duties.

If you believe someone has knowingly committed customs fraud and you would like to learn more about or would like to bring a whistleblower lawsuit, the qui tam lawyers at Keller Grover LLP can help you. These whistleblower lawyers understand qui tam litigation, including the whistleblower protection provisions, and strive to achieve the best possible results for their clients.