Fighting Trade Cheats Act of 2025

This bill, known as the "Fighting Trade Cheats Act of 2025," aims to strengthen enforcement against customs fraud and gross negligence by amending the Tariff Act of 1930. It significantly increases the civil monetary penalties for such violations, raising fines to three times the domestic value for fraudulent acts and up to ten times the loss of revenue for grossly negligent acts. Furthermore, it introduces a presumption of knowledge for purchasers who repeatedly buy merchandise from affiliated persons previously found to have committed customs violations. Beyond monetary penalties, the bill imposes additional sanctions, including a five-year prohibition on importing merchandise for fraudulent violators and a two-year prohibition for grossly negligent violators, extending these bans to their affiliated persons. A major new provision creates a private right of action , allowing an "interested party" – such as a domestic manufacturer, union, or trade association – to bring a civil lawsuit against those who commit customs fraud or gross negligence and cause injury. Such parties can recover compensatory damages, an additional penalty of three times those damages, attorney's fees, and seek injunctions against further illegal imports. To further deter illicit trade, the bill mandates the exclusion of persons who commit fraudulent or grossly negligent customs violations, along with their affiliated entities, from participating in the Importer of Record program . This exclusion also applies to persons deemed affiliated based on factors like similar imported merchandise or common exporters, aiming to prevent the use of shell companies to evade customs laws. These comprehensive changes are designed to enhance the integrity of U.S. customs processes and protect domestic industries from unfair competition.