Fighting Trade Cheats Act of 2026
Fighting Trade Cheats Act of 2026
Plain Language Summary
# Fighting Trade Cheats Act of 2026 - Summary **What It Does:** This bill would crack down on companies and individuals who violate U.S. customs laws through fraud or negligence. It increases financial penalties for these violations and creates import bans for offenders. Specifically, it triples the maximum financial penalties for fraudulent customs violations (from the current value of the goods up to three times that value) and increases penalties for grossly negligent violations. The bill would also ban anyone committing fraud from importing goods into the U.S.
for five years. **Who It Affects:** The bill primarily targets importers, customs brokers, and businesses involved in international trade who deliberately mislead customs officials or act with severe carelessness regarding trade regulations. Consumers could potentially be affected indirectly if enforcement leads to higher import costs. It also gives U.S. Customs and Border Protection stronger enforcement tools. **Current Status:** The bill was introduced by Senator Katie Britt (R-AL) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full Senate. It has not advanced beyond the initial review stage.
CRS Official Summary
Fighting Trade Cheats Act of 2026This 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
Read twice and referred to the Committee on Finance.