The $1 Billion EAPA Milestone: CBP's Duty Evasion Crackdown and What It Means for Every Importer

CBP just hit a number that should get every importer's attention: more than $1 billion in uncovered duty evasion under a single program in a single year. If you're importing goods subject to antidumping or countervailing duties — or buying from suppliers who might be routing through third countries — the enforcement net just got a lot tighter.

Here's a number that should keep trade compliance teams up at night: $549.5 million. That's what Perfectus Aluminum agreed to pay in May 2026 to settle False Claims Act allegations that it knowingly evaded antidumping and countervailing duties on aluminum extrusions from China. It's the largest trade-related FCA settlement in U.S. history. And it came with a criminal conviction, a $1.836 billion restitution order, and the forfeiture of entire warehouses full of aluminum.

Perfectus wasn't some fly-by-night operation. They had warehouses. They had logistics. They had a system — and CBP dismantled it. The settlement didn't happen in isolation. It's part of a coordinated enforcement surge that, as of July 29, 2026, has pushed the Enforce and Protect Act program past $1 billion in uncovered duties for the first time in its 10-year history.

That's 300% above the program's annual average. The message from Washington is clear: duty evasion is no longer a cost of doing business. It's a target.

What Is EAPA and Why Does It Matter Now?

The Enforce and Protect Act (EAPA) was signed into law in February 2016 as part of the Trade Facilitation and Enforcement Act. It gives CBP the authority to investigate allegations that importers are evading antidumping (AD) and countervailing duty (CVD) orders through schemes like illegal transshipment, misclassification, and undervaluation.

Before EAPA, combating duty evasion was slow and fragmented. An affected domestic manufacturer had to rely on Commerce Department reviews that could take years. EAPA created a dedicated, fast-track process: CBP must decide whether to initiate an investigation within 15 business days of receiving an allegation, and must reach a determination within 300 calendar days.

The program launched in September 2016 with its first allegation filed just one month after regulations took effect. In the years since, CBP has launched over 500 investigations and conducted 60+ foreign on-site visits. But 2026 has been different — dramatically different.

The 2026 Enforcement Surge: By the Numbers

CBP's July 29, 2026 announcement wasn't just a press release. It was a statement of intent. Here's what the numbers look like:

The 14 notices of determination in 2026 cover a strikingly diverse range of products: solar cells, tow-behind lawn groomers, lumber, pipes, xanthan gum, metal lockers, and wooden furniture. This isn't about one industry — it's systemic enforcement across sectors.

The Trade Fraud Task Force: A New Enforcement Architecture

The numbers don't exist in a vacuum. They reflect a fundamental shift in how the U.S. government approaches trade fraud enforcement.

In August 2025, DOJ and DHS launched the Trade Fraud Task Force (TFTF) — a joint initiative that brings together prosecutors, investigators, and customs officers under a single enforcement umbrella. In less than one year of operation, the Task Force surpassed $1 billion in combined civil and criminal recoveries, penalties, forfeitures, and charged losses.

Then, on July 14, 2026, DOJ and DHS published something unprecedented: A Resource Guide to Trade Fraud Enforcement. Think of it as the trade compliance equivalent of the DOJ's FCPA Resource Guide — a detailed roadmap that tells companies exactly what the government expects, how it investigates, and what factors it considers when deciding whether to prosecute.

The Guide covers:

• Duties of candor — what CBP and DOJ expect in terms of voluntary self-disclosure
• Civil and criminal resolution frameworks — how penalties are calculated
• Compliance program expectations — what "adequate" compliance looks like
• Whistleblower provisions — how qui tam actions work under the FCA
• Real-world enforcement examples — case studies from recent actions

As Mayer Brown noted in their analysis, DOJ is signaling that it "no longer views customs and trade compliance as a narrow matter of administrative filings, but rather considers it a frontline economic and national security priority."

How EAPA Investigations Actually Work

Understanding the mechanics of an EAPA investigation is critical for any importer dealing with AD/CVD goods. Here's the timeline:

1. Allegation filed — An "interested party" (domestic manufacturer, trade association, or even a competitor) files an allegation through CBP's EAPA portal. Another federal agency like Commerce can also initiate.

2. 15-day screening — CBP reviews the allegation and decides whether to initiate a formal investigation. The bar is "reasonable suspicion."

3. Interim measures (within 90 days) — If CBP finds reasonable suspicion during investigation, it can impose interim measures: requiring single-transaction bonds, cash deposits, or suspension of liquidation on the subject entries.

4. Investigation (up to 300 days) — CBP investigates the allegation, which can include foreign on-site visits, document requests, and analysis of import data.

5. Determination — CBP issues a final determination of evasion or no evasion. If evasion is found, all unliquidated entries are subject to the applicable AD/CVD rates, plus potential penalties.

The critical point: interim measures can be imposed at just 90 days. That means an importer can face cash deposit requirements or suspended liquidation months before a final determination. Your cash flow can get hit before you've even had a full hearing.

The Perfectus Case: Anatomy of a $549.5 Million Takedown

The Perfectus Aluminum case deserves special attention because it shows exactly how aggressive enforcement has become — and how multiple enforcement tracks now converge on the same conduct.

The scheme: Perfectus imported aluminum extrusions from China while allegedly submitting false customs forms to CBP to evade AD/CVD duties. The HTS codes for aluminum extrusions (primarily under 7604 and 7608) carry antidumping duty rates that can exceed 300% for certain Chinese producers.

The enforcement tracks:

• Criminal prosecution — Convictions in the Central District of California, resulting in a $1.836 billion restitution order
• Civil FCA action — $549.5 million settlement announced May 12, 2026
• Forfeiture proceedings — Warehouses and aluminum "pallets" seized
• EAPA investigation — Underlying duty evasion uncovered

The whistleblower angle: The FCA's qui tam provisions mean that competitors, industry associations, or even former employees can file sealed complaints and share in any recovery. The Perfectus case demonstrates that whistleblowers in the trade space can trigger investigations worth hundreds of millions.

As K&L Gates warned in their analysis: the government is sending "a clear message that trade fraud is not a cost of doing business."

Who's at Risk: It's Not Just the Bad Actors

If you're thinking "we don't evade duties, so this doesn't apply to us," think again. The enforcement surge creates risk for legitimate importers in several ways:

Supply chain liability. If your overseas supplier is routing goods through a third country to avoid AD/CVD orders, you — the importer of record — are on the hook. "Willful blindness" is enough to establish liability. Boise Cascade learned this the hard way with a $6.3 million criminal fine in April 2026 for Lacey Act violations involving "willful blindness toward illegally imported birch plywood."

Increased scrutiny on everyone. When CBP ramps up EAPA investigations, it pulls more entry data, conducts more audits, and flags more shipments for review. Even compliant importers may see increased exam rates and longer clearance times for products in targeted categories.

Competitor-driven allegations. EAPA's "interested party" filing mechanism means your competitors can trigger an investigation. If a domestic manufacturer believes imports are undercutting them through duty evasion, they have a fast-track mechanism to bring CBP to your door.

Products currently under EAPA scrutiny in 2026:

• Solar cells and modules
• Lumber and wood products
• Steel and aluminum pipes
• Xanthan gum
• Metal lockers and shelving
• Wooden furniture
• Tow-behind lawn groomers

Five Steps Every Importer Should Take Now

The enforcement landscape has changed. Here's how to respond:

1. Audit your AD/CVD exposure — Map every product you import that's subject to an antidumping or countervailing duty order. Check Commerce's current orders list. If you're importing from a country that's frequently used as a transshipment point (Vietnam, Thailand, Malaysia, Mexico), flag those entries for extra scrutiny.

2. Verify your supply chain origin — Don't rely on supplier certificates alone. The Resource Guide makes clear that "willful blindness" won't protect you. Conduct periodic on-site visits or engage third-party auditors to verify that manufacturing actually occurs where your supplier claims.

3. Review your classification practices — Misclassification is one of the three evasion methods EAPA targets. If your HTS codes place you just outside an AD/CVD order's scope, make sure your classification is defensible with binding rulings or detailed analysis — not just broker convenience.

4. Implement a voluntary self-disclosure protocol — The Resource Guide emphasizes that voluntary self-disclosure is a significant mitigating factor. If you discover a problem, having a protocol in place to report it quickly can be the difference between a penalty reduction and a criminal referral.

5. Monitor EAPA filings in your product space — CBP publishes Federal Register notices when it initiates EAPA investigations. If an investigation targets your product category, you may be swept up even if you're not the named party. Set up alerts for your HTS chapters.

What's Coming Next

The enforcement trajectory is only steepening. Here's what to watch:

• More EAPA investigations — CBP has scheduled EAPA outreach webinars for August 12 and September 24, 2026, suggesting continued expansion of the program
• FCA qui tam activity — The Perfectus settlement will encourage more whistleblower filings; expect competitors and former employees to see dollar signs
• Resource Guide implementation — DOJ and DHS will use the July 2026 Guide as a benchmark for evaluating corporate compliance; companies without documented programs will face harsher treatment
• Expanded product scope — The diversity of 2026 targets (from solar cells to xanthan gum) signals that no product category is safe from scrutiny
• International coordination — On-site visits to five countries in 2026 show CBP is building foreign verification capabilities that will make transshipment schemes harder to sustain

The Compliance Imperative

A billion dollars in uncovered evasion isn't just a headline — it's a signal that the enforcement infrastructure has finally caught up with the scale of the problem. For a decade, EAPA was a tool with potential. In 2026, it became a weapon.

The importers who thrive in this environment won't be the ones who find clever workarounds. They'll be the ones with clean supply chains, defensible classifications, and compliance programs that match what the Resource Guide now explicitly demands. Tools like TariffLens can help you map your AD/CVD exposure and flag classification risks before CBP does — but the first step is taking this shift seriously.

This article is for informational purposes only and does not constitute legal, tax, or customs advice. Consult a licensed customs broker or trade attorney for guidance specific to your situation.