The Shifting US Trade Enforcement Environment

The U.S. government has intensified its focus on trade enforcement, tariff compliance, and the integrity of importer data — advancing a broader policy agenda that blends economic competitiveness with national security and raising expectations for accurate product classification, origin declarations and defensible recordkeeping. In line with this agenda, CBP has increased post-entry audits and detentions, while the Department of Justice (DOJ) is increasingly applying civil enforcement tools, most notably the False Claims Act (FCA), to import-related filings. This evolving enforcement posture is transforming traditional compliance gaps into areas of material legal and financial risk.

Persistent Challenges in Trade Compliance Operations

Despite increased enforcement activity, many importers remain behind the curve in managing trade compliance risks. The misclassification of goods under the Harmonized Tariff Schedule (HTS) is a frequent corporate challenge, often resulting from outdated systems or limited product-specific expertise. Misclassification can lead to both overpayment and underpayment of duties, the latter carrying regulatory and reputational exposure.

Documentation gaps and inconsistencies are also prevalent. Missing commercial invoices, packing lists or certificates of origin, along with mismatches between these records, can raise red flags during CBP reviews or internal audits. In the absence of centralized oversight over how data flows through procurement, logistics and customs brokerage, companies may inadvertently submit filings that conflict with internal purchase orders, cost sheets or supplier records. Many organizations continue to rely on manual processes for filing and recordkeeping, increasing the risk of errors and limiting scalability.

A lack of visibility into suppliers and subcontractors further complicates a company’s ability to verify country-of-origin claims, especially when a company globally sources raw materials or components. This blind spot is especially problematic in today’s volatile trade environment, where policy changes can quickly affect tariff treatment, sanctions exposure or market access. Some companies also miss opportunities to leverage Free Trade Agreements (FTAs) effectively. Those unaware of qualifying opportunities, or that lack the documentation and systems to support FTA claims, often miss out on substantial duty savings and broader supply chain benefits.

When Trade Declarations Trigger Legal Risk

Operational shortcomings are common, and their consequences can be significant. DOJ has used the FCA to pursue importers that allegedly submitted false declarations related to origin, valuation or classification. Even when a customs broker submits the entry, the importer of record retains liability. DOJ has asserted that failing to correct known discrepancies, or disregarding patterns of misfiling, may constitute “reckless disregard,” satisfying the FCA’s knowledge standard.

DOJ often scrutinizes documentation issues, such as repeated use of HTS codes with lower duty rates unsupported by technical specifications, declared countries of origin that conflict with supplier or production documentation, and material discrepancies between ACE filings and internal company records.

Building a Proactive Trade Compliance Framework

Effectively managing trade compliance risk requires a structured approach to detecting and addressing potential issues. Conducting regular internal audits or engaging a third-party advisor can help identify high-risk patterns, root causes and underlying control gaps. One essential step is reconciling ACE filings with underlying supporting documentation, including invoices, supplier records, purchase orders and internal systems.

Once companies identify deficiencies, they should promptly correct them. Organizations should immediately quantify potential exposure, evaluate the strength of existing controls, and maintain clear records of any remediation efforts. Remediation can include revising internal procedures, enhancing personnel training, establishing documentation requirements for suppliers, and centralizing oversight of customs brokers. In many cases, the strategic use of automation and data analytics can reduce manual errors and improve consistency across compliance lifecycles. 

Trade Governance Should Be a Strategic Priority

Government enforcement is becoming increasingly aggressive. Import compliance, once viewed as a back-office function, is now a strategic function that brings substantial regulatory and reputational risk. Organizations that invest in governance, transparency and targeted automation — along with periodic trade compliance reviews, health checks and horizon scans — will be better positioned to adapt to regulatory change and to defend their practices when challenged.

Leading organizations take a proactive posture by identifying risk early, addressing gaps with discipline, and aligning with evolving regulatory expectations.

How A&M Can Help

A&M’s integrated team of trade compliance, investigations and data analytics experts helps organizations evolve their trade compliance programs into forward-looking frameworks that address both operational risks and legal exposure. We assist clients in navigating the complexities of tariff regulations, customs and FCA enforcement, and international trade policies, transforming risk into informed action and complexity into clarity. Our approach ensures that import and export processes are aligned with evolving regulatory requirements, minimizing exposure to penalties and disruptions.

A&M’s Investigations team, led by former prosecutors from the Civil Fraud and Criminal Fraud sections as well as experts in National Security and Trade, specializes in tackling complex False Claims Act issues involving trade and tariff matters. We provide comprehensive strategic support throughout investigations, compliance reviews and litigation, empowering clients to effectively navigate shifting federal enforcement priorities, including heightened scrutiny of customs declarations, valuation accuracy and tariff classifications. Leveraging extensive experience across all industry verticals, we stay ahead of enforcement developments to help clients respond proactively to FCA inquiries and mitigate future risks related to trade compliance and fraud.