Fighting Trade Cheats Act of 2026

Increased Penalties for Fraud and Negligence: The bill increases the financial penalties for fraudulent violations to three times the domestic value and increases penalties for grossly negligent violations (Section 2). This could serve as a stronger deterrent against trade cheating.

Import Prohibitions: Individuals or entities that commit fraudulent violations are prohibited from importing merchandise for five years, while those guilty of gross negligence are prohibited for two years (Section 2). These prohibitions also extend to affiliated persons.

Private Right of Action for Injured Parties: "Interested parties"—such as US manufacturers, producers, wholesalers, or unions—can bring civil actions against those who cause injury through customs fraud or gross negligence (Section 3).

Enhanced Legal Relief: Parties bringing a private action can recover compensatory damages, an additional penalty of three times the amount of those damages, and the costs of the legal action, including attorney's fees (Section 3).

Protection Against Shell Companies: The bill allows persons to be deemed "affiliated" based on information like similar merchandise or common shippers to prevent the use of shell companies to evade laws (Section 4).

New Legal Presumptions: The bill creates a presumption that a person has knowledge of a violation if they purchase merchandise from an affiliated person who has already been determined to have committed fraud or gross negligence (Section 2).

Import Bans for Affiliates: The bill extends import prohibitions and the exclusion from the importer of record program to "affiliated persons," which could impact businesses that have a formal or ongoing relationship with a violator (Section 2 and Section 4).

Exclusion from Importer of Record Program: Persons determined to have committed fraudulent or grossly negligent violations, as well as their affiliates, are ineligible to participate in the importer of record program (Section 4).