Fighting Trade Cheats Act of 2025
Fighting Trade Cheats Act of 2025
Plain Language Summary
# Fighting Trade Cheats Act of 2025 - Summary **What It Does:** This bill would crack down on companies and individuals who cheat U.S. customs laws—such as by smuggling goods, misrepresenting product origins, or evading tariffs. It increases financial penalties for fraudulent violations from the current level to three times the value of the illegally imported goods. It also strengthens penalties for "grossly negligent" violations (serious mistakes or recklessness). Additionally, anyone caught committing fraud would be banned from importing goods into the U.S.
for five years. **Who It Affects:** This bill primarily targets importers, customs brokers, and shipping companies engaged in fraudulent trade practices. It could indirectly affect consumers if enforcement costs get passed along as higher prices, though the bill aims to protect legitimate businesses and consumers from unfair competition. **Current Status:** The bill (HR 1284) was introduced by Rep. Mike Bost (R-IL) in the 119th Congress and is currently in committee, meaning it hasn't been voted on by the full House yet. It remains in the early legislative stage.
CRS Official Summary
Fighting Trade Cheats Act of 2025This bill increases penalties for, and establishes additional enforcement mechanisms related to, fraudulent and grossly negligent violations of U.S. customs laws.Specifically, the bill increases the maximum civil penalty for a fraudulent violation to three times the domestic value of the merchandise. (Currently, the maximum penalty is the domestic value of the merchandise.) It prohibits a person who commits a fraudulent violation from importing merchandise into the United States for a five-year period.Additionally, the bill increases the maximum civil penalty for a grossly negligent violation to the lesser of (1) 3 times the domestic value of the merchandise; or (2) 10 times the lawful duties, taxes, and fees. (Currently, the maximum penalty is the lesser of the domestic value of the merchandise or four times the lawful duties, taxes, and fees.) It prohibits a person who commits a grossly negligent violation from importing merchandise into the United States for a two-year period.Further, the bill applies these importation bans to an affiliated person (e.g., a family member or employee) of the person who committed the fraudulent or grossly negligent violation.The bill establishes a private right of action for an interested party (e.g., a manufacturer) affected by customs fraud or grossly negligent violations.The bill prohibits any person (or an affiliated person) who commits a fraudulent or grossly negligent violation from participating in the U.S. Customs and Border Protection's Importer of Record program, and further requires revocation of their importer of record numbers.
Latest Action
Referred to the House Committee on Ways and Means.