Barnes & Thornburg | New Year, Renewed Enforcement: Tariffs, Trade Compliance, and DOJ Actions to Watch in 2026

As we enter 2026, recent developments in U.S. trade enforcement confirm that civil and criminal enforcement of tariff, duty, and customs compliance remains a top priority for the DOJ, U.S. Customs and Border Protection and other agencies. Companies engaged in importing, sourcing and supply chain activities continue to face meaningful risk of enforcement action when tariff and duty obligations are not met.

In this alert, we highlight several recent DOJ actions affecting tariffs and trade compliance and outline key considerations for the year ahead.

Recent DOJ Actions Affecting Tariffs and Trade Compliance

Criminal Charges Against Indonesian Jewelry Company

In late 2025, the U.S. Attorney’s Office for the District of New Jersey charged an Indonesian jewelry manufacturer, one of its co-owners, and two employees with conspiracy to evade more than $86 million in U.S. customs duties and tariffs on over $1.2 billion in imported jewelry. The complaint alleges that the defendants engaged in multiple schemes to avoid duties, including routing Indonesian-origin jewelry through Jordan to falsely claim preferential treatment and falsely declaring jewelry as U.S. made. The charges include conspiracy to commit wire fraud and carry significant potential penalties for both individuals and corporate defendants.

This prosecution reinforces that false country of origin claims and tariff evasion continue to be treated as serious criminal offenses.

Plastic Resin Distributor Trade Fraud Resolution

In December 2025, the DOJ resolved a criminal trade fraud investigation involving a plastic resin distributor that failed to pay Section 301 tariffs on Chinese-origin plastic resin. The DOJ declined to prosecute the company under its Corporate Enforcement and Voluntary Self Disclosure Policy after the company voluntarily disclosed the misconduct, fully cooperated, and implemented remediation measures. The company’s subsidiaries previously paid $6.8 million to resolve related civil liability under the FCA. In a related matter, the company’s former chief operating officer agreed to plead guilty to conspiracy to smuggle goods based on his role in directing false country of origin declarations.

This resolution highlights both the continued focus on individual accountability and the potential benefits of timely voluntary self-disclosure and cooperation.

Ceratizit USA LLC False Claims Act Settlement

Also in December 2025, Ceratizit USA LLC agreed to pay $54.4 million to resolve allegations that it knowingly evaded duties on tungsten carbide products imported from China. According to the U.S. government, the company misrepresented the country of origin of Chinese-made products that were transshipped through Taiwan, misclassified products under the Harmonized Tariff Schedule, and failed to properly mark products with their country of origin. The settlement resolves a civil FCA case brought by a whistleblower under the FCA’s qui tam provisions.

This settlement underscores the financial exposure associated with inaccurate origin declarations, misclassification and marking violations.

Enforcement Trends to Watch in 2026

Taken together, these matters reflect several enforcement themes likely to continue in 2026:

• Increased scrutiny of country of origin claims and transshipment practices
• Parallel civil and criminal enforcement, including FCA actions
• Individual liability for executives and employees involved in trade fraud
• Continued reliance on whistleblowers to identify potential customs fraud
• Coordination among DOJ, CBP and Homeland Security Investigations through the Trade Fraud Task Force

Key Compliance Considerations

Companies engaged in international trade should consider reviewing country of origin determinations, tariff classifications and duty calculations; assessing supply chain routing and transshipment practices; strengthening internal controls and audit programs; and evaluating whistleblower and investigation readiness.

Conclusion

The start of the New Year is an opportune time for companies to reassess trade compliance frameworks in light of an increasingly active enforcement environment. Recent DOJ actions make it clear that tariff and customs compliance failures can result in significant civil penalties and criminal exposure.