Fighting Trade Cheats Act of 2025

Stronger financial penalties for trade cheaters: Section 2 increases the civil fines for fraudulent and grossly negligent customs violations, making rule-breakers pay much steeper penalties up to several times the domestic value of the merchandise. This helps protect honest domestic workers and businesses from unfair competition.

Import bans on bad actors: Section 2 stops anyone who commits fraud from importing merchandise into the United States for five years, and stops those guilty of gross negligence for two years. This penalty also applies to their affiliated persons, which keeps dishonest traders out of our markets.

Empowering domestic workers and businesses to sue: Section 3 creates a private right of action under a new section 592B, allowing American manufacturers, wholesalers, and labor unions to take direct legal action in federal court against those who injure them through customs fraud. Successful plaintiffs can recover three times their compensatory damages plus attorney fees.

Kicking fraudsters out of the importer of record program: Section 4 amends the Trade Facilitation and Trade Enforcement Act of 2015 to ban any person who commits customs fraud or gross negligence—along with their shell companies and affiliated persons—from participating in the importer of record program. This stops repeat offenders from hiding behind new business names.