On May 12, 2025, Matthew Galeotti, the Head of the U.S. Department of Justice’s Criminal Division, sent a memo to all criminal division personnel highlighting the focus areas of the division for white-collar crime.

The memo included a list of “high-impact areas” that the division will prioritize investigating and prosecuting. Trade and customs fraud, including tariff evasion, was second on the list.

The DOJ also revised its Corporate Whistleblower Awards Pilot Program and added “trade, tariff, and customs fraud by corporations” to the priority list.

Galeotti noted that unchecked fraud in U.S. markets robs hardworking Americans, harms the public, and that efficient enforcement promotes American economic and national security interests.

This memo signals a significant shift in the priorities of the DOJ’s criminal division. Historically, trade violations were not a top criminal priority and were instead handled by CBP and the DOJ’s Civil Division. Relatively few trade law violation cases have risen to the level of criminal prosecution.

What Importers Should Do

Now more than ever it is critical for importers to examine their import compliance programs and ensure that adequate procedures are in place to correctly enter goods into the United States.

Invest in Compliance

CBP expects importers to use “reasonable care” in reporting HTS, value, country of origin, free trade agreement preference, etc. This is a subjective standard; however, CBP provides plentiful resources to guide importers. Working with a customs attorney, importers should develop robust compliance programs that minimize the risk of trade law violations and demonstrate reasonable care.

Due Diligence

Importers should proactively conduct extensive due diligence in their supply chains to ensure they are able to detect, report, and remedy any noncompliance with customs requirements. Relying on the word of a supplier or the due diligence of a broker is not enough.

Develop or Revisit Voluntary Prior Disclosure (PD) Policies

When an importer voluntarily discloses a customs violation, they can benefit significantly from reduced penalties. PD policies create a clear plan of action if an importer discovers a violation. Timely disclosure can make the difference between benefiting from a mitigated penalty or not. It is also critical to work with a customs attorney when submitting a PD to ensure the proper information is provided and to maximize the mitigation benefit.

Diaz Trade Law can assist importers in developing compliance plans and guide importers in the event of a customs investigation. Contact us at 305-456-3830 or info@diaztradelaw.com.

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