General Fraud
Overview
The Homeland Security Investigations (HSI) Commercial Fraud Unit (CFU) oversees the general fraud program, focusing on fraud investigations related to merchandise importation. These investigations often involve false documents, misleading statements, or fraudulent practices to manipulate the import process.
Focus
Common violations include evading trade controls and restrictions meant to protect domestic industries and the national economy from harmful trade practices and risky imports that could pose a public health and safety threat. A major factor in these cases is the potential loss of revenue to the U.S. government. Often, these fraud cases are part of larger criminal activities, including money laundering, human trafficking, and financial fraud. HSI collaborates with U.S. Customs and Border Protection and other government agencies to tackle these issues.
Here are some typical schemes HSI investigates:
- False Valuation: Importers understate the value of goods to pay less duty than they rightfully owe.
- Misclassification: Goods are falsely classified under a category that carries a lower duty rate to reduce the duty paid.
- Marking: As required by law, imported goods must display their country of origin. To evade duties, bypass sanctions, or improve marketability, some importers use fraudulent country of origin markings.
- Broker Compliance: Under the Customs Modernization Act of 1993, customs brokers must ensure accurate entry of merchandise and follow procedures that comply with regulations. HSI also looks into brokers who fail to meet these legal requirements and commit offenses.
Removable "Made in" label attached on clothing tag
HSI's general fraud investigations aim to uncover and stop these fraudulent activities, ensuring fair trade practices and protecting the economy.