False Claims, Real Consequences: What Every Importer Needs to Know About Customs’ FCA Enforcement
In the latest episode of Five Questions, Five Answers, host Birgit Matthiesen is joined by ArentFox Schiff colleagues Jackson David Toof and Mario A. Torrico for a conversation on the False Claims Act (FCA), its origins, and its continued importance as a tool to combat fraud against the federal government.
The discussion examines how US Customs and Border Protection (CBP) and the US Department of Justice (DOJ) are increasingly using the FCA to pursue customs fraud and trade violations, the significant business and reputational risks companies face, and the compliance missteps that commonly lead to enforcement actions. It also highlights the importance of proactive compliance strategies for managing FCA exposure.
Takeaways
The FCA is a long-standing and powerful enforcement tool.
FCA enforcement by CBP and the DOJ is increasing sharply.
FCA violations pose serious financial and reputational risks for importers.
Compliance exposure most often arises from classification, valuation, and country‑of‑origin errors.
Proactive compliance programs offer both risk reduction and competitive advantage.
