DOJ’s Trade Fraud Task Force Shift Signals Major Enforcement Changes — What You Should Know

DOJ’s Trade Fraud Task Force Shift Signals Major Enforcement Changes — What You Should Know

The Department of Justice (DOJ) just turned up the heat on trade-related compliance. In a keynote address at a key international trade conference, Cody Matthew Herche, the newly appointed Head of the DOJ’s Trade Fraud Task Force (TFTF), made it clear that the government’s approach to trade fraud enforcement is undergoing a significant strategic shift — one that has direct implications for companies with global supply chains, compliance officers, legal teams, and international trade stakeholders. 

From Administrative Oversight to Aggressive Enforcement

Historically, trade compliance was often treated as an administrative checklist — focused on accurate paperwork and tariff classifications. Herche announced that those days are over. The DOJ now views trade fraud as a core national and economic security concern and is prioritizing both civil and criminal enforcement tools to tackle misconduct. 

That includes:

• Proactive criminal investigations under statutes such as 18 U.S.C. §§ 541, 542, and 545;
  
  
• Increased emphasis on individual accountability, not just corporate settlements;
  
  
• Data-driven case generation using analytics to spot anomalies in import data;
  
  
• Deeper interagency cooperation with agencies such as the FDA, EPA, and CPSC.
  
  

These changes show a DOJ that is far more willing to pursue rigorous enforcement actions, including against executives and individuals responsible for trade decisions. 

Enforcement Trends You Should Track

1. Criminal Enforcement Is No Longer Rare

Herche underscored a “decisive shift” toward criminal cases, signaling that criminal exposure is rising for customs and tariff violations. Prior high-profile indictments (including smuggling and false entry charges) show this trend is already underway. 

2. Supply Chain Risk = Compliance Risk

Common schemes now squarely under scrutiny include:

• Misrepresenting country of origin or using transshipment to evade duties;
  
  
• Misclassification of products using manipulated HTS codes;
  
  
• Double-invoicing to mislead customs authorities;
  
  
• Forged safety or environmental certificates that bypass regulatory checks.
  
  

3. Interagency Approach Means Broader Exposure

The DOJ is working closely with Customs and Border Protection, Homeland Security Investigations, and other regulatory agencies to build enforcement cases. This means compliance gaps in any part of the supply chain — not just customs paperwork — can bring government scrutiny. 

4. Whistleblower and Civil Tools Still in Play

While criminal enforcement is rising, civil statutes like the False Claims Act remain central to the government’s strategy and have already produced record recoveries. Industry insiders and competitors may increasingly become sources of referral intelligence for prosecutors. 

Break It Down for Me

For companies operating with international suppliers, customs brokers, or complex import processes, the message from DOJ leadership is clear:

✅ Do not wait for a government inquiry before assessing your compliance frameworks.

✅ Strengthen internal controls and documentation across duty classification, valuation, and safety certification processes.

✅ Investigate red flags internally — unexplained cost shifts, sudden changes in country of origin, or inconsistent customs documentation.

✅ Consider voluntary disclosure where errors are found, as DOJ cooperation can influence outcomes favorably. 

The new enforcement climate emphasizes proactive risk management, not reactive defense. Compliance teams must think beyond traditional trade compliance checklists to integrate cross-functional risk controls and continuous monitoring. 

‍

FRDM can help. Schedule call with a subject matter expert.

‍