S. 3808

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3808 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 3808

To amend the Tariff Act of 1930 to increase civil penalties for, and 
improve enforcement with respect to, customs fraud, and for other 
purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 9, 2026

Mrs. Britt (for herself, Ms. Baldwin, Mr. Tillis, and Mr. Fetterman) 
introduced the following bill; which was read twice and referred to the 
Committee on Finance

_______________________________________________________________________

A BILL

To amend the Tariff Act of 1930 to increase civil penalties for, and 
improve enforcement with respect to, customs fraud, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fighting Trade Cheats Act of 2026''.

SEC. 2. INCREASE IN CIVIL PENALTIES FOR FRAUDULENT AND GROSSLY 
NEGLIGENT VIOLATIONS OF UNITED STATES CUSTOMS LAWS.

Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (2) as paragraph 
(3); and
(B) by inserting after paragraph (1) the following:
``(2) Presumption.--
``(A) In general.--For purposes of paragraph 
(1)(B), if a person purchases merchandise from two or 
more affiliated persons after such persons are 
determined by U.S. Customs and Border Protection or a 
court of competent jurisdiction to have violated 
subsection (a) by means of fraud or gross negligence, 
there shall be a presumption that the purchaser had 
knowledge of such violation with respect to purchases 
from the second or subsequent such affiliated person.
``(B) Affiliated person defined.--In subparagraph 
(A), the term `affiliated person' has the meaning given 
that term in section 771(33).''; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``A fraudulent violation'' 
and inserting the following:
``(A) In general.--A fraudulent violation'';
(ii) in subparagraph (A) (as so 
designated), by inserting before ``the domestic 
value'' the following: ``three times''; and
(iii) by adding at the end the following:
``(B) Additional penalties.--A person--
``(i) that commits a fraudulent violation 
of subsection (a) shall be prohibited from 
importing merchandise into the United States 
during a period of five years beginning on the 
date of entry of a final judgment with respect 
to such violation; and
``(ii) that is an affiliated person of a 
person described in clause (i) shall be 
prohibited from importing merchandise into the 
United States during the period described in 
such clause.
``(C) Affiliated person defined.--In subparagraph 
(B)(ii), the term `affiliated person' has the meaning 
given that term in section 771(33).''; and
(B) in paragraph (2)--
(i) by striking ``A grossly negligent 
violation'' and inserting the following:
``(A) In general.--A grossly negligent violation'';
(ii) by striking ``(A) the lesser of--'' 
and inserting the following:
``(i) the lesser of--'';
(iii) by striking ``(i) the domestic 
value'' and inserting the following:
``(I) three times the domestic 
value'';
(iv) by striking ``(ii) four times'' and 
inserting the following:
``(II) 10 times'';
(v) by striking ``(B) if the violation'' 
and inserting the following:
``(ii) if the violation'';
(vi) in clause (ii) of subparagraph (A) (as 
so redesignated), by striking ``40 percent of'' 
and inserting ``three times''; and
(vii) by adding at the end the following:
``(B) Additional penalties.--A person--
``(i) that commits a grossly negligent 
violation of subsection (a) shall be prohibited 
from importing merchandise into the United 
States during a period of two years beginning 
on the date of entry of a final judgment with 
respect to such violation; and
``(ii) that is an affiliated person of a 
person described in clause (i) shall be 
prohibited from importing merchandise into the 
United States during the period described in 
such clause.
``(C) Affiliated person defined.--In subparagraph 
(B)(ii), the term `affiliated person' has the meaning 
given that term in section 771(33).''.

SEC. 3. PRIVATE ENFORCEMENT ACTION FOR CUSTOMS FRAUD.

The Tariff Act of 1930 is amended by inserting after section 592A 
(19 U.S.C. 1592a) the following:

``SEC. 592B. PRIVATE ENFORCEMENT ACTION FOR CUSTOMS FRAUD.

``(a) Civil Action.--An interested party the business, property, or 
other financial interest of which is injured by a fraudulent or grossly 
negligent violation of section 592(a) may bring a civil action against 
any person that causes such injury, or any person that aids or abets 
that person in violating section 592(a), in any United States District 
Court located in a district in which the interested party has suffered 
injury, without regard to the amount in controversy.
``(b) Relief.--Upon proof by an interested party in a civil action 
brought under subsection (a) that the business, property, or other 
financial interest of the interested party has been injured by a 
fraudulent or grossly negligent violation of section 592(a), the 
interested party shall--
``(1)(A) recover compensatory damages equal to the amount 
of such injury plus an additional penalty equal to three times 
the amount of compensatory damages; and
``(B) be granted such equitable relief as may be 
appropriate, which may include an injunction against further 
importation into the United States of the merchandise imported 
into the United States in violation of section 592(a); and
``(2) recover the costs of bringing the civil action, 
including reasonable attorney's fees.
``(c) Intervention by the United States.--
``(1) In general.--The court shall permit the United States 
to intervene in an civil action brought under subsection (a), 
as a matter of right. The United States shall have all the 
rights of a party.
``(2) Sharing of information.--Upon a reasonable request by 
the United States Government, any interested party that brings 
a civil action under subsection (a) shall provide to the United 
States Government--
``(A) a copy of the complaint;
``(B) any memoranda of law or briefing filed with a 
court in support of the complaint as of the date of the 
request; and
``(C) if the United States Government agrees to 
reimburse the interested party for all reasonable costs 
and expenses associated with responding to the request, 
any information obtained by the interested party 
through discovery processes in the civil action as of 
the date of the request.
``(d) Interested Party Defined.--
``(1) In general.--In this section, the term `interested 
party' means--
``(A) a manufacturer, producer, or wholesaler in 
the United States of like merchandise or competing 
merchandise;
``(B) a certified union or recognized union or 
group of workers that is representative of an industry 
engaged in the manufacture, production, or wholesale in 
the United States of like merchandise or competing 
merchandise; or
``(C) a trade or business association a majority of 
the members of which manufacture, produce, or wholesale 
like merchandise or competing merchandise in the United 
States.
``(2) Competing merchandise.--For purposes of paragraph 
(1), the term `competing merchandise' means merchandise that 
competes with or is a substitute for merchandise being imported 
into the United States in violation of section 592(a).
``(3) Like merchandise.--For purposes of paragraph (1), the 
term `like merchandise' means merchandise that is like, or in 
the absence of like, most similar in characteristics and uses 
with, merchandise being imported into the United States in 
violation of section 592(a).''.

SEC. 4. EXCLUSION OF PERSONS THAT HAVE COMMITTED FRAUDULENT OR GROSSLY 
NEGLIGENT VIOLATIONS OF UNITED STATES CUSTOMS LAWS FROM 
PARTICIPATION IN THE IMPORTER OF RECORD PROGRAM.

Section 114 of the Trade Facilitation and Trade Enforcement Act of 
2015 (19 U.S.C. 4320) is amended--
(1) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Exclusion.--
``(1) In general.--The following persons shall be 
ineligible to participate in the importer of record program:
``(A) 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)).
``(B) Any person that is an affiliated person of a 
person described in subparagraph (A).
``(2) Revocation.--The Secretary shall revoke the importer 
of record number assigned to any person under the importer of 
record program if the Secretary subsequently determines that 
the person is a person described in subparagraph (A) or (B) of 
paragraph (1).
``(3) Affiliated person defined.--
``(A) In general.--For purposes paragraph (1)(B), 
the term `affiliated person' has the meaning given that 
term in section 771(33) of the Tariff Act of 1930 (19 
U.S.C. 1677(33)).
``(B) Deemed affiliated persons.--In order to 
prevent commercial fraud, protect the revenue, and help 
prevent the use of shell companies by importers that 
seek to evade the customs and trade laws of the United 
States, a person may be deemed to be an affiliated 
person for purposes of paragraph (1)(B) based upon 
information declared to U.S. Customs and Border 
Protection suggesting a formal or ongoing relationship 
between that person and a person described in paragraph 
(1)(A), including similarities in imported merchandise 
(including article classification upon importation), 
common declared exporters and shippers, and historical 
import volumes.''.
<all>