Senate BillS 3808Foreign Trade and International Finance
Fighting Trade Cheats Act of 2026
INTRO FEB 9· LAST ACTION FEB 9
READING
7MIN
COSPONSORS
4BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it seeks to make trade fairer for American businesses and workers. Currently, some companies might gain an unfair advantage by misrepresenting imported goods to pay lower taxes or avoid certain regulations. This practice, known as customs fraud, can make it harder for U.S. companies to compete on price, potentially leading to job losses or reduced profits for domestic industries.
If this bill becomes law, it would significantly increase the risks for companies attempting customs fraud through much higher financial penalties and import bans, making it less attractive to cheat. It also empowers U.S. businesses to take direct legal action, which means more accountability for those who cheat. Without this bill, the existing penalties and enforcement mechanisms might not be strong enough to deter fraudulent behavior, allowing unfair competition to persist and potentially harm the U.S. economy and its workforce.
KEY PROVISIONS
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PROVISION 01
Triples the civil penalties for fraudulent customs violations and significantly increases penalties for grossly negligent violations.
This makes customs fraud much more financially risky for companies.
PROVISION 02
Imposes import bans of 5 years for fraudulent violations and 2 years for grossly negligent violations, extending to affiliated companies.
This creates a strong non-monetary deterrent by directly impacting a company's ability to do business in the U.S.
PROVISION 03
Creates a legal presumption that a purchaser knows of customs violations if they buy from multiple affiliated suppliers previously found guilty of fraud or gross negligence.
This helps U.S. Customs and Border Protection or courts hold buyers accountable for continued business with known 'trade cheats.'
PROVISION 04
Allows U.S. manufacturers, unions, and trade associations (interested parties) to sue companies for customs fraud or gross negligence if they are financially harmed.
This provides a new and powerful tool for domestic industries to seek justice and protect themselves from unfair trade practices.
PROVISION 05
If an 'interested party' wins a private enforcement action, they can recover three times their actual damages, plus attorney's fees, and potentially stop future illegal imports.
This provision provides substantial financial incentive for affected U.S. businesses to pursue legal action.
This bill matters because it seeks to make trade fairer for American businesses and workers. Currently, some companies might gain an unfair advantage by misrepresenting imported goods to pay lower taxes or avoid certain regulations. This practice, known as customs fraud, can make it harder for U.S. companies to compete on price, potentially leading to job losses or reduced profits for domestic industries.
If this bill becomes law, it would significantly increase the risks for companies attempting customs fraud through much higher financial penalties and import bans, making it less attractive to cheat. It also empowers U.S. businesses to take direct legal action, which means more accountability for those who cheat. Without this bill, the existing penalties and enforcement mechanisms might not be strong enough to deter fraudulent behavior, allowing unfair competition to persist and potentially harm the U.S. economy and its workforce.
KEY PROVISIONS
AI-extracted
high
Triples the civil penalties for fraudulent customs violations and significantly increases penalties for grossly negligent violations.
This makes customs fraud much more financially risky for companies.
high
Imposes import bans of 5 years for fraudulent violations and 2 years for grossly negligent violations, extending to affiliated companies.
This creates a strong non-monetary deterrent by directly impacting a company's ability to do business in the U.S.
med
Creates a legal presumption that a purchaser knows of customs violations if they buy from multiple affiliated suppliers previously found guilty of fraud or gross negligence.
This helps U.S. Customs and Border Protection or courts hold buyers accountable for continued business with known 'trade cheats.'
high
Allows U.S. manufacturers, unions, and trade associations (interested parties) to sue companies for customs fraud or gross negligence if they are financially harmed.
This provides a new and powerful tool for domestic industries to seek justice and protect themselves from unfair trade practices.
med
If an 'interested party' wins a private enforcement action, they can recover three times their actual damages, plus attorney's fees, and potentially stop future illegal imports.
This provision provides substantial financial incentive for affected U.S. businesses to pursue legal action.
Any person committing a fraudulent violation of customs laws (Section 592(a))
administrative
5-year prohibition from importing merchandise into the U.S.
Any person committing a fraudulent violation of customs laws (Section 592(a)) AND their affiliated persons
civil
lesser of (I) three times the domestic value of the merchandise OR (II) 10 times the lawful duties/taxes for grossly negligent violations. If merchandise is not subject to duty, three times the domestic value.
Any person committing a grossly negligent violation of customs laws (Section 592(a))
administrative
2-year prohibition from importing merchandise into the U.S.
Any person committing a grossly negligent violation of customs laws (Section 592(a)) AND their affiliated persons
civil
compensatory damages equal to injury plus an additional penalty equal to three times the compensatory damages, plus costs and reasonable attorney's fees.
Any person that causes injury to an interested party through a fraudulent or grossly negligent violation of Section 592(a), or aids or abets such a person.
GLOSSARY
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Customs Fraud
Intentionally providing false information or making false statements to U.S. Customs and Border Protection regarding imported goods, often to avoid paying duties or taxes.
Grossly Negligent Violation
Failing to exercise a reasonable degree of care in fulfilling customs obligations, demonstrating a reckless disregard for accuracy, resulting in incorrect information provided to U.S. Customs and Border Protection.
Tariff Act of 1930
A foundational U.S. law that sets out rules and procedures for the collection of duties on imported goods, and for customs enforcement.
Affiliated Person
A company or individual connected to another, often through common ownership or control, such that one can influence the actions of the other.
Domestic Value
The price at which imported goods are offered for sale, usually in the principal market of the United States.
Interested Party
A U.S. manufacturer, producer, wholesaler, a union representing workers in that industry, or a trade association, whose business or financial interests are affected by the import of certain goods.
Injunction
ACTION TIMELINE
2 EVENTS
FEB 9
Introduced in Senate
INTROREFERRAL
FEB 9
Read twice and referred to the Committee on Finance.
