Responding to a Trade Violations Civil Investigative Demand (CID)
So your probably sitting there with this Civil Investigative Demand from DOJ or CBP about customs fraud and your entire import business is collapsing. Maybe you transshipped goods to avoid tariffs. Maybe there’s issues with country of origin declarations. Or maybe your just caught up in there latest antidumping enforcement sweep. Look, we get it. Your ABSOLUTELY PETRIFIED. And you should be! Because a Florida couple got 57 MONTHS in federal prison and importers are paying TENS OF MILLIONS in settlements!
What Makes Trade Violations Investigations So Terrifying?
Let me explain the customs nightmare your facing. DOJ has shifted entire fraud units to focus on tariff evasion – its now one of there TOP 10 enforcement priorities!
The False Claims Act applies to ANY customs fraud! Every entry form, every invoice, every country of origin certificate becomes a potential false claim! Undervalue goods by 10%? FALSE CLAIM! Wrong HTS classification? Fraud! Transship through Vietnam to avoid China tariffs? CRIMINAL CONSPIRACY! We’ve seen legitimate importers destroyed for paperwork errors!
Here’s what’s really scary – treble damages plus penalties can reach $62 MILLION! Repwire faces $11 million in duties PLUS $62 million in penalties for aluminum wire imports! One shipment classification error can bankrupt your company!
How Crushing Are Customs Fraud Penalties?
Hold onto your import license because these numbers will destroy everything!
Allied Stone paid $12.4 MILLION for quartz imports! Precision Cable paid $10 million for undervaluing by 70%! That flooring company? $8.1 million! These aren’t huge multinationals – there regular importers crushed by DOJ!
Criminal penalties are DEVASTATING – customs fraud carries up to 20 years prison! Each false entry is separate count! Conspiracy adds 5 years! Money laundering another 20 years! The Florida couple got 57 months AND $42 million forfeiture!
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(212) 300-5196What About Antidumping and Countervailing Duties?
AD/CVD violations are particularly CATASTROPHIC! CBP enforces over 500 AD/CVD orders covering everything from steel to solar panels!
Didn’t know your product had AD/CVD order? TOO BAD! Rate changed retroactively? You owe millions! Supplier lied about origin? YOUR liable! We’ve seen importers owe 300% duties on goods they sold years ago at a loss!
The EAPA investigations are brutal – CBP has 300 days to destroy you! They presume guilt! Interim measures freeze your imports immediately! No due process! Your business dies while “investigation” drags on!
Todd Spodek
Lead Attorney & Founder
Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.
What Triggers Trade Violations Investigations?
Your probably wondering “How did CBP find out?” Let me tell you what puts importers in DOJ’s crosshairs:
Your company received a Civil Investigative Demand from the Department of Justice requesting five years of import records, invoices, and communications with your overseas suppliers related to alleged customs fraud on Chinese-manufactured steel products. You suspect a former employee may have filed false country-of-origin declarations to avoid antidumping duties, and you have 30 days to respond.
Should I turn over everything the CID demands, or can I push back on the scope of what DOJ is requesting?
You absolutely have the right to negotiate the scope of a CID under 31 U.S.C. § 3733, and you should exercise that right strategically before producing a single document. A CID is a civil tool, but the information you provide can be referred to criminal enforcement under the False Claims Act (31 U.S.C. § 3729) or even trigger criminal customs fraud charges under 18 U.S.C. § 542. We would immediately file a petition to modify or set aside overly broad requests, assert applicable privileges including attorney-client and work product protections, and ensure that any production does not inadvertently waive your Fifth Amendment rights if individual liability is at stake. The key is responding cooperatively enough to avoid a court enforcement action while protecting you from the very real possibility that this civil investigation becomes a criminal prosecution.
This is general information only. Contact us for advice specific to your situation.
Whistleblowers get 15-30% of recoveries! Competitor knows your supply chain? They’re filing qui tam lawsuit! Freight forwarder has documents? There talking to lawyers! Even your customs broker might report you for reward!
EAPA allegations from domestic manufacturers! They monitor every import! See price too low? File EAPA allegation! Can’t compete? Claim your evading duties! We’ve seen successful importers destroyed by failing competitors weaponizing EAPA!
