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119-s-3808119th CongressWALLET

Fighting Trade Cheats Act of 2026

Sponsored By: Senator Britt, Katie Boyd [R-AL]

Introduced

Summary

Tougher enforcement on customs fraud. This bill would raise civil penalties, create a private right of action for triple damages, and bar repeat offenders from the importer-of-record program.

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  • U.S. manufacturers, producers, wholesalers, and unions could sue importers for fraudulent or grossly negligent violations to recover their losses plus triple damages, costs, and reasonable attorneys' fees, and to seek injunctions.
  • Importers and affiliated persons would face higher penalties and tighter rules, including a 5-year ban for fraudulent violations, a 2-year ban for grossly negligent violations, a new penalty formula using 3x domestic value with a 10x cap, and a presumption of knowledge for some purchasers.
  • The importer-of-record program would exclude those found to commit fraud or gross negligence. Customs and Border Protection could revoke importer numbers and deem related entities to stop shell companies based on similar goods, common exporters or shippers, and past import volumes.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 3 costs, 0 mixed.

New private lawsuits for domestic firms

If enacted, certain U.S. businesses, unions, and trade groups would be able to sue in federal court when imports were brought into the U.S. by fraud or gross negligence. A successful plaintiff would recover compensatory damages plus an additional penalty equal to three times those damages (so total recovery equals four times compensatory damages). Plaintiffs could also get injunctions to stop further importation of the violating goods and recover costs and reasonable attorney fees. The United States could join those cases as a full party and could request filings and discovery; if the U.S. asks for discovery materials, it would need to agree to reimburse reasonable costs.

Importer program exclusion rules

If enacted, people or firms that CBP or a court determines committed a fraudulent or grossly negligent customs violation would be ineligible for the importer-of-record program. Their affiliated persons would also be ineligible. The Secretary would have to revoke an importer-of-record number if the person becomes ineligible. CBP could treat firms as affiliated using declared information like similar imported goods, common exporters or shippers, and past import volumes to stop use of shell companies.

Higher penalties and import bans

If enacted, the bill would raise civil penalties and add multi-year import bans for people found to commit fraud or gross negligence on customs filings. For fraudulent violations, penalties would be set at three times the domestic value and the violator and their affiliates would be barred from importing for five years after a final judgment. For grossly negligent violations, penalty calculations would use three times the domestic value in the lesser-of test with a statutory cap referenced as ten times, and violators and affiliates could be barred from importing for two years after a final judgment. U.S. Customs and Border Protection could deem firms affiliated using declared shipment, exporter/shipper, and historical import volume information.

Presumed knowledge for buyers

If enacted, the bill would create a legal presumption that a purchaser knew about fraud or gross negligence when they buy goods from two or more affiliated sellers after those sellers were determined to have violated customs law. The presumption would apply to purchases from the second or later affiliated seller. The bill uses the definition of 'affiliated person' found in existing law (section 771(33)).

Sponsors & CoSponsors

Sponsor

Britt, Katie Boyd [R-AL]

AL • R

Cosponsors

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 2/9/2026

  • Sen. Tillis, Thomas [R-NC]

    NC • R

    Sponsored 2/9/2026

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 2/9/2026

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 7/29/2026

Roll Call Votes

No roll call votes available for this bill.

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