CBP and Commerce Recover $1 Billion in Duty Evasion Enforcement

In 2026, the U.S. Department of Commerce and U.S. Customs and Border Protection (CBP) escalated their enforcement measures under the Enforce and Protect Act (EAPA), marking a milestone achievement in trade compliance efforts. This year's intensive enforcement actions culminated in the first-ever duty evasion filing focusing on imports of carbon and alloy steel threaded rods from India, revealing substantial evasion of antidumping duties. The resulting investigation has uncovered more than $1 billion in additional duties owed to the United States, emphasizing a robust dedication to ensuring compliance with trade laws.

Since its inception, the EAPA has served as a pivotal tool for CBP in the fight against trade fraud, including the evasion of antidumping and countervailing duties imposed to protect domestic industries. The recent figures indicate a 300% increase in enforcement activity compared to previous annual averages, signaling a transformation in how the U.S. enforces compliance against importers attempting to sidestep duty obligations. This increase not only reflects a commitment to transparency and fair trade practices, but also a response to pressures from American manufacturers advocating for a fair marketplace.

The investigation, designated EAPA Case 8210, targeted 14 specific importers accused of misrepresenting their product origins to benefit from lower duty rates. This manipulation of trade regulations has far-reaching implications for market fairness. The department discovered that these companies incorrectly claimed eligibility for a zero percent all-others duty rate rather than adhering to the duty rates designated for their specific producers or exporters. Consequently, measures have been implemented to ensure that these violators are compelled to pay the full duty rates applicable to their merchandise, which is crucial for safeguarding the competitive advantages of American businesses.

The collaborative efforts between Commerce and CBP represent a significant procurement opportunity for consulting firms and contractors specializing in regulatory compliance, especially those focusing on trade law and enforcement technologies. As the U.S. continues to ramp up its commitment to combat trade fraud, procurement professionals engaging in import/export operations will need to prepare for an increasingly complex compliance landscape. Engaging with CBP resources, such as the Office of Trade and the Office of Field Operations, will be essential for companies aiming to stay ahead of regulatory changes and enforcement priorities.

Rodney S. Scott, CBP Commissioner, emphasized the program's alignment with the country’s trade policy, stating, "CBP’s EAPA program supports the America First Trade Policy, which focuses on protecting American businesses and workers." This statement reflects the administration’s ongoing efforts to uphold domestic economic interests by ensuring that foreign competitors adhere to U.S. trade laws.

Furthermore, participation in the e-Allegations portal established by CBP allows both businesses and the general public to report suspected trade violations. This level of engagement from the public not only enhances monitoring efforts but also showcases the government’s reliance on collective accountability in a fair trading environment. Businesses should consider utilizing these resources to familiarize themselves with potential compliance pitfalls and proactively address them ahead of enforcement actions.

The implications of this increased vigilance by CBP and the Commerce Department extend beyond mere regulatory compliance; they signal a landscape ripe with opportunities for services that aid companies in navigating these complexities effectively. With the heightened enforcement, businesses must prioritize their adherence to trade laws to avert investigations and penalties.