Federal Tariff Evasion Defense Lawyer
With the implementation of new tariffs this year, the Department of Justice (DOJ) and other federal agencies have increased their enforcement focus.
This aggressive stance means that individuals and businesses suspected of customs violations, particularly tariff evasion, face a heightened risk of investigation and prosecution.
This risk is exacerbated by the fact that tariff rates are subject to frequent change (sometimes by the day).
If you are facing allegations of tariff evasion, securing representation from a federal criminal defense attorney with experience in trade-related crimes is a critical step toward protecting your rights and future.
Tariff evasion occurs when an importer illegally avoids paying customs duties and tariffs owed on imported goods.
Federal authorities, including Customs and Border Protection (CBP) and Homeland Security Investigations (HSI), employ sophisticated methods to detect these schemes. An investigation can expose an individual or company to significant criminal liability.
Key Takeaways
- The Department of Justice (DOJ) is enhancing its efforts to prevent tariff evasion by creating a new Cross-Agency Trade Fraud Task Force, leveraging advanced data analytics, and expanding the use of criminal statutes like the False Claims Act (FCA) and laws targeting false statements.
- These measures target importers who falsify the origin or value of goods to evade paying duties.
- The DOJ's Market Integrity and Major Frauds (MIMF) Unit, part of the Criminal Division's Fraud Section, was specifically deployed to address tariff evasion schemes.
- At the American Conference Institute's 42nd Annual Conference on FCPA and Global Anti-Corruption in Washington, DC, a DOJ official revealed new procedures for the Task Force, which the DOJ and Homeland Security lead. These updates refine its methods for generating leads, conducting investigations, and prosecuting criminal tariff evasion.
- The Senior Counsel of the Criminal Division highlighted that the Task Force plans to leverage the DOJ Health Care Fraud Unit's data-driven approach to spot leads indicating potential violations of US tariff laws.
- Possible criminal charges for tariff evasion include violations of 18 USC § 542, which involves entering goods through false statements, and 18 USC § 545, related to smuggling goods into the U.S. Both offenses carry severe penalties.
Common Criminal Charges for Tariff Evasion
The U.S. government is stepping up its efforts in customs enforcement, with the Department of Justice (DOJ) spearheading a more assertive campaign to combat tariff evasion.
Suspected tariff evasion can lead to several federal criminal charges, each carrying severe consequences. The specific statutes invoked depend on the nature of the alleged misconduct.
- Entry of Goods Falsely Classified (18 U.S.C. § 541): This statute makes it a crime to knowingly introduce imported merchandise into the U.S. by means of any false invoice, declaration, or practice. This includes misclassifying goods under an incorrect Harmonized Tariff Schedule (HTS) code to pay a lower duty rate. A conviction under this law can result in imprisonment for up to two years and substantial fines.
- Entry of Goods by Means of False Statements (18 U.S.C. § 542): This law addresses the act of entering or attempting to enter imported goods into U.S. commerce through fraudulent or false invoices, declarations, or other statements. This can involve undervaluing merchandise to reduce the dutiable amount. Similar to § 541, a violation is a felony punishable by up to two years in prison and fines.
- Smuggling Goods into the United States (18 U.S.C. § 545): This is a more serious offense that involves fraudulently or knowingly importing merchandise contrary to law. It covers actions intended to defraud the United States of lawful duties. A conviction can lead to imprisonment for up to 20 years.
- Conspiracy to Defraud the United States (18 U.S.C. § 371): The government frequently uses this charge in tariff evasion cases. It applies when two or more people conspire to commit an offense against the U.S. or to defraud it in any manner. If the object of the conspiracy is to evade tariffs, prosecutors can charge all involved parties under this statute, which carries a penalty of up to five years in prison.
- Wire Fraud (18 U.S.C. § 1343) and Mail Fraud (18 U.S.C. § 1341): If fraudulent communications related to the importation scheme are transmitted via wire, radio, or television, or sent through the U.S. mail, prosecutors may add these charges. Each count carries a maximum sentence of 20 years' imprisonment.
Common Defenses in Tariff Evasion Cases
Complying with current tariff structures can be complicated, and federal prosecutors tend to pursue violations aggressively.
If you're suspected of tariff evasion, hiring the right defense attorney can make a huge difference in whether your case is resolved favorably.
An experienced federal defense attorney can analyze the specifics of your case and build a robust defense strategy. While every case is unique, some common defenses may be employed to challenge the government's allegations:
- Lack of Intent: Most federal fraud statutes, including those related to tariff evasion, require the government to prove that the defendant acted "knowingly" or "willfully." A skilled attorney may argue that any errors in customs declarations were unintentional mistakes resulting from negligence or a misunderstanding of complex customs regulations, rather than a deliberate attempt to defraud the government.
- Good Faith: A defense can be built around the argument that you acted in good faith, relying on the advice of experts such as customs brokers, supply chain consultants, or attorneys. If you can demonstrate that you took reasonable steps to comply with the law, it can negate the element of fraudulent intent.
- Challenging the Evidence: The prosecution's case often relies on a complex trail of documents, emails, and financial records. A defense attorney can scrutinize this evidence for inconsistencies, inaccuracies, or procedural violations. If evidence was obtained illegally, it may be suppressed and excluded from court.
- Value and Classification Disputes: There can be legitimate disagreements over the proper valuation or classification of imported goods. An attorney can present evidence, including expert testimony, to show that your classification or valuation was a reasonable interpretation of the law, even if CBP disagreed with it.
To schedule a case review, contact our federal criminal defense law firm at Eisner Gorin LLP.
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