H.R. 1284 — Fighting Trade Cheats Act of 2025

This section establishes the short title of the Act as the “Fighting Trade Cheats Act of 2025.”

This section increases civil penalties for fraudulent and grossly negligent customs violations under section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) by (1) creating a rebuttable presumption that a purchaser knew of a violation when buying merchandise from a second or subsequent affiliated person after U.S. Customs and Border Protection or a court has found two or more affiliated persons liable for fraud or gross negligence, and (2) raising monetary penalties and adding import bans. For fraudulent violations, the section increases the penalty from the domestic value of the merchandise to three times the domestic value and prohibits the violator from importing merchandise into the United States for 5 years beginning on the date of entry of a final judgment; affiliated persons are subject to the same 5-year ban. For grossly negligent violations, the section increases the penalty from the lesser of the domestic value or 4 times the lawful duties, taxes, and fees to the lesser of three times the domestic value or 10 times the lawful duties, taxes, and fees, and increases the alternative penalty from 40 percent of the lawful duties, taxes, and fees to three times that amount; it also prohibits the violator from importing merchandise for 2 years beginning on the date of entry of a final judgment, with the same 2-year ban applying to affiliated persons.

This section establishes a private right of action for an interested party injured by a fraudulent or grossly negligent violation of customs fraud provisions under 19 U.S.C. § 1592(a). It authorizes the injured party to sue in any U.S. district court in the district where the injury occurred, without regard to the amount in controversy, against the violator or any person that aids or abets the violation. This section requires a prevailing interested party to recover compensatory damages equal to the amount of the injury plus treble damages equal to 3 times the compensatory damages, as well as equitable relief, including an injunction against further importation of the merchandise involved, and the costs of the action, including reasonable attorney’s fees. It also permits the United States to intervene as of right and requires the plaintiff, upon reasonable request, to provide the government with the complaint, supporting memoranda, and, if the government agrees to reimburse costs, discovery materials. This section subjects any court order issued under the new private enforcement provision to presidential nullification authority under section 203 of the International Emergency Economic Powers Act (50 U.S.C. § 1702). It defines an “interested party” as a U.S. manufacturer, producer, or wholesaler of like or competing merchandise, a certified or recognized union or group of workers representing such an industry, or a trade or business association whose majority of members manufacture, produce, or wholesale like or competing merchandise in the United States.

This section excludes from the importer of record program any person determined by U.S. Customs and Border Protection or a court of competent jurisdiction to have committed a fraudulent or grossly negligent violation of section 592(a) of the Tariff Act of 1930 (19 U.S.C. 1592(a)), and any affiliated person of such a violator. It directs the Secretary of Homeland Security to revoke the importer of record number assigned to any such person if the Secretary later determines the person is ineligible. As background, the importer of record program identifies the party responsible for ensuring imported merchandise complies with U.S. customs laws and for paying applicable duties, taxes, and fees. The section defines “affiliated person” by reference to section 771(33) of the Tariff Act of 1930 (19 U.S.C. 1677(33)) and authorizes U.S. Customs and Border Protection to deem a person affiliated based on information suggesting a formal or ongoing relationship, including similarities in imported merchandise, common exporters and shippers, and historical import volumes, in order to prevent commercial fraud, protect revenue, and deter shell companies used to evade customs and trade laws.