Customs Busts $400M Duty-Evasion Ring Tied to China and Global Network
U.S. Customs and Border Protection (CBP) has dismantled a massive duty-evasion operation designed to circumvent President Trump’s tariffs, uncovering more than $400 million in unpaid trade duties — with that number expected to climb as investigations continue, FOX Business has learned.
The bust was carried out under the Enforce and Protect Act (EAPA), a key enforcement tool used to detect and halt illegal transshipments, false origin claims, and other schemes intended to defraud the U.S. government.
“CBP’s EAPA program is a critical component of our trade enforcement efforts. We’re working tirelessly to prevent evasion and ensure a level playing field for U.S. companies,” said CBP Commissioner Rodney Scott. “Our mission, under the leadership of President Trump, is to support economic fairness, protect domestic industry, and uphold the integrity of U.S. supply chains.”
A source said investigators deployed personnel to mattress factories in Taiwan and Indonesia — only to find no production taking place at all.
The investigation revealed that over half of the unpaid duties — roughly $250 million — came from a network of 23 Chinese shell companies. These companies repackaged goods to appear as though they originated from other Asian nations such as South Korea, Indonesia, and Vietnam, all in an effort to dodge U.S. anti-dumping and countervailing duties (AD/CVD).
“Never before has CBP identified this many importers evading AD/CVD in a single consolidated EAPA investigation,” said Susan S. Thomas, acting Executive Assistant Commissioner for CBP’s Office of Trade. “The revenue identified for collection exceeds $250 million, but this figure may increase as we uncover additional importers in the scheme.”
The operation has already triggered 89 additional cases flagged for suspicion of duty evasion, with CBP warning that monetary recovery will likely exceed $400 million once the full extent of the fraud is uncovered.
CBP says its crackdown sends a clear message: tariff evasion will not be tolerated, and those attempting to cheat U.S. trade laws will face aggressive enforcement.
Photo credit: Gage Skidmore via Flickr










