S. 3808 — Fighting Trade Cheats Act of 2026

This section amends civil penalties for fraudulent, grossly negligent, or negligent violations of customs entry laws (19 U.S.C. 1592) by (1) establishing a presumption of knowledge—and thus aiding or abetting liability—for any person purchasing merchandise from two or more affiliated persons (as defined in 19 U.S.C. 1677(33)) after the affiliates are found by U.S. Customs and Border Protection or a court to have committed fraud or gross negligence; (2) increasing the maximum penalty for fraudulent violations to three times the domestic value of the merchandise (from the domestic value); (3) increasing the maximum penalty for grossly negligent violations to the lesser of three times the domestic value or 10 times the revenue loss (from the lesser of the domestic value or four times the revenue loss), or to three times the dutiable value if there was no revenue loss (from 40 percent of the dutiable value); and (4) prohibiting importers who commit fraudulent violations, and their affiliates, from importing merchandise for five years from final judgment, and those who commit grossly negligent violations, and their affiliates, for two years from final judgment.

This section establishes a private right of civil action in U.S. district court—without regard to the amount in controversy—for an "interested party" (i.e., a U.S. manufacturer, producer, or wholesaler of like or competing merchandise; a representative union or group of workers in such an industry; or a trade association whose majority members engage in such activities) injured in its business, property, or financial interest by a fraudulent or grossly negligent violation of customs entry penalty provisions under section 592(a) (i.e., false or incomplete statements, omissions, or other acts in connection with merchandise importation). Successful plaintiffs recover treble compensatory damages (i.e., three times the injury amount), appropriate equitable relief (e.g., injunctions against further importation of the violating merchandise), and costs including reasonable attorney's fees. The United States may intervene in such actions as of right with full party rights. Plaintiffs must provide the government, upon reasonable request, with copies of complaints, supporting briefs, and (if costs are reimbursed) discovery materials obtained in the case.

This section establishes exclusions from the importer of record program—under which U.S. Customs and Border Protection (CBP) assigns a single importer number to approved participants to facilitate customs entries—for (1) any person determined by CBP or a court 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)), which prohibits entry of merchandise through material false statements or omissions; and (2) any affiliated person of such a person. It further directs CBP to revoke importer of record numbers upon such a subsequent determination and defines affiliated persons by reference to 19 U.S.C. 1677(33), including deeming based on declared information (e.g., similarities in merchandise classification, exporters, shippers, or import volumes) to prevent evasion.