Congress·In Committee·H.R. 1284

New Bill Proposes Triple Fines and 5-Year Import Bans for Companies That Cheat Trade Laws

Fighting Trade Cheats Act of 2025

about 1 year ago·View on Congress.gov

Part of: Congress Proposes Triple Fines and Import Bans to Combat Customs Fraud

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

This bill targets companies that lie on customs forms to avoid paying taxes or duties on goods brought into the U.S. It triples the current fines for fraud and gross negligence, making it much more expensive for businesses to cheat the system.
Companies caught committing fraud would be banned from importing any goods into the United States for five years. Those found "grossly negligent" would face a two-year ban. These bans also apply to partner companies to stop fraudsters from simply opening a new business under a different name to keep importing.
For the first time, American manufacturers, workers, and unions could sue trade cheaters directly in federal court. If they win, they can collect three times the amount of money they lost, plus have their legal fees paid by the company that broke the rules.
The bill makes it harder for "shell companies" to hide. If a person buys from multiple companies that have already been caught cheating, the law will assume they knew about the fraud. It also kicks these bad actors out of the official government program used to track and approve importers.

Economy FinanceLabor Employment

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Feb 13, 2025House

Referred to the House Committee on Ways and Means.

Feb 13, 2025

Introduced in House

Related News

4 articles

International Trade Today·about 1 month ago

Fighting Trade Cheats Act Reintroduced in Senate

A bill that would increase the penalty for trade fraud and create a right of private action to sue on customs fraud and gross negligence was reintroduced this week. Sens. Katie Britt and Tammy Baldwin are the lead sponsors. A House companion bill was introduced last year.

Alabama Political Reporter·almost 3 years ago

Sen. Britt co-sponsors bill to crack down on trade cheats, support American manufacturers

Senator Katie Britt joined Senator Tammy Baldwin in co-sponsoring the Fighting Trade Cheats Act. The bill targets companies dumping foreign goods and allows private companies to sue foreign producers that harm American businesses through customs fraud.

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Vernon Reporter·about 1 year ago

Sen. Baldwin raises alarm on impact of Trump tariffs to Wisconsin agriculture, manufacturing, and families

Senator Baldwin identified the Fighting Trade Cheats Act as key bipartisan legislation to empower private companies to hold bad actors accountable. The plan aims to rebuild American manufacturing and level the playing field for workers against non-market practices from China.

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