Tariff Enforcement Tightens

A new era of tariff enforcement is underway. Triggered by a sharp increase in US import duties, customs authorities in the US, UK, and EU are intensifying scrutiny of import practices.

The risks of non-compliance — from financial penalties to criminal liability — have never been higher for importers, and proactive management of tariff obligations is essential to safeguard operations and reputation.

Global regulators are increasingly adopting a zero-tolerance approach to tariff evasion practices. Enforcement is no longer limited to administrative fines: it now includes tax fraud charges, False Claims Act litigation, and corporate criminal liability. High-profile investigations and settlements have underscored the serious consequences businesses face if compliance controls fail.

Recent cases illustrate the scale and seriousness of regulatory action. In February 2025, a UK-based company agreed to pay over £3.2 million in a compound settlement with HMRC for exporting military-listed goods without the necessary licences. In December 2024, a major sports brand’s headquarters in Germany were raided by prosecutors and customs investigators as part of a probe into suspected tax evasion exceeding €1.1 billion, relating to customs duties and import VAT in Germany and Austria.

Following the introduction of new US tariffs in April 2025, companies are facing significantly increased duty exposure, with cumulative rates exceeding 50% for some countries. As a result, authorities are prioritising investigations into common evasion practices, including:

– Misstating product classification
– Incorrect country-of-origin declarations
– Underreporting shipment values

Both the False Claims Act (US) and the EU’s Directive on Administrative Cooperation (DAC6) create expanded obligations for importers to investigate and correct compliance failures — even where errors originate with suppliers or intermediaries. Under DAC6, any arrangement that obscures the jurisdiction, value, or nature of goods could trigger reporting requirements and expose businesses to significant penalties.

In the UK, the Criminal Finances Act further raises the stakes. It introduces corporate offences for failing to prevent the facilitation of domestic or foreign tax evasion, with strict liability unless companies can demonstrate that “reasonable procedures” were in place.

How We Protect You

Our trusted advisors manage customs risk on behalf of importers by:
– Ensuring accurate documentation across the supply chain
– Avoiding costly missteps in classification, origin, and valuation
– Conducting compliance reviews of supply chains, documentation, and third-party partners
– Establishing strong audit trails, reporting, and trade compliance frameworks

Partnering with PSP Worldwide Logistics is the difference between shipping with regulatory confidence and costly investigation. EMAIL Michelle Redman, our customs expert, today to start a conversation and protect your business.