Summary of S. 3808 - Fighting Trade Cheats Act of 2026

Overview

The Fighting Trade Cheats Act of 2026 is a bill introduced in the U.S. Senate that aims to increase civil penalties and improve enforcement against customs fraud. The key provisions of the bill are:

Key Provisions

1. Increasing Civil Penalties for Customs Fraud:

   • Triples the maximum civil penalty for fraudulent customs violations from the domestic value of the merchandise to three times the domestic value.
   • Imposes additional penalties, including a 5-year import ban, for persons found to have committed fraudulent customs violations.
   • Increases civil penalties for grossly negligent customs violations, raising the maximum penalty from 40% of the domestic value to three times the domestic value.
   • Includes provisions to prohibit affiliated persons of those who commit fraudulent or grossly negligent violations from importing merchandise for set periods.

2. Private Enforcement Action for Customs Fraud:

   • Allows "interested parties" whose business, property, or financial interests are injured by fraudulent or grossly negligent customs violations to file civil lawsuits against the violators.
   • Provides for compensatory damages plus triple damages, as well as equitable relief such as import injunctions.
   • Allows the U.S. government to intervene in these private lawsuits as a matter of right.

Impact

The bill is intended to deter and penalize customs fraud more severely, in order to protect U.S. businesses and workers from unfair trade practices. The increased civil penalties and private right of action are aimed at enhancing enforcement of customs laws and providing recourse for injured parties.

Timeline

The bill was introduced in the Senate on February 9, 2026 and has been referred to the Committee on Finance for consideration.