On July 14, 2026, the U.S. Department of Justice announced the creation of the Global Trade & Commerce Enforcement Section (GTCES) within its National Fraud Enforcement Division. The new section is charged with investigating and prosecuting criminal customs, import, trade, sanctions, and related fraud offenses. For companies engaged in importing, exporting, or any form of cross-border commerce, the launch of GTCES signals a substantial escalation in the government's willingness to pursue criminal, rather than solely civil or administrative, remedies for trade violations.
In tandem with the launch, DOJ and the Department of Homeland Security jointly issued A Resource Guide to Trade Fraud Enforcement, described as the first comprehensive framework of its kind. The guide provides companies with clearer expectations regarding cross-border trade compliance, enforcement priorities, and the conduct that may draw federal scrutiny. While the resource does not create new legal obligations, it consolidates existing enforcement principles and offers valuable insight into how prosecutors and investigators are likely to evaluate corporate conduct, cooperation, and remediation in the trade context.
The financial stakes are already significant. According to DOJ, the trade fraud task force has surpassed $1 billion in recoveries, penalties, and forfeitures in less than a year. This figure underscores both the government's aggressive enforcement posture and the elevated financial exposure facing businesses that fail to maintain rigorous compliance programs. Common risk areas include tariff misclassification, undervaluation, transshipment to evade duties, false country-of-origin declarations, and violations of U.S. sanctions and export controls.
In light of these developments, companies should promptly reassess their trade compliance frameworks. Practical steps include revisiting customs classification and valuation practices, auditing country-of-origin determinations, strengthening sanctions and export control screening, and reviewing internal controls over recordkeeping, broker relationships, and supply chain due diligence. Companies should also ensure that internal reporting channels and voluntary disclosure protocols are functioning effectively, as early identification and remediation of issues may materially influence enforcement outcomes.
The formation of GTCES and the accompanying guidance mark a clear inflection point in federal trade enforcement, and businesses with cross-border operations should treat proactive compliance review as a near-term priority.
This alert is provided for general informational purposes only and does not constitute legal advice. Clients with specific questions about their trade compliance obligations or potential exposure should consult counsel for tailored guidance.