“Non-compliance is a business risk no longer worth taking. We are resolved to police the entire supply chain.”
— Assistant Attorney General Colin M. McDonald

Today, the Department of Justice announced what it described as the largest trade fraud enforcement action in DOJ history, together with sweeping new Trade Fraud Task Force enforcement initiatives.  I had the privilege of being personally invited to attend the briefing, thereby gaining the unique opportunity to hear firsthand the DOJ’s enforcement priorities and strategic direction.

One message was unmistakable: supply chain integrity has become a board-level issue. Trade fraud, forced labor, tariff evasion, country-of-origin misrepresentations, customs valuation, and related misconduct are no longer viewed as isolated customs compliance matters—they increasingly represent enterprise risks with potentially significant legal, financial, operational, and reputational consequences.

Just as importantly, these risks are not confined to importers of record. Companies throughout the value chain—including manufacturers, distributors, retailers, healthcare organizations, technology companies, private equity sponsors, investors, lenders, licensors, and customers—may face meaningful legal, financial, contractual, and reputational exposure if trade fraud or forced labor risks are embedded within their supply chains or those of their suppliers, acquisition targets, distributors, or other business partners.

Companies should expect heightened scrutiny of areas such as:

• Customs valuation
• Country-of-origin representations
• Tariff evasion and transshipment
• Forced labor compliance
• Supply chain integrity
• Related False Claims Act and criminal enforcement

Today’s announcement confirms that these issues also may trigger enterprise-wide implications involving governance, enterprise risk management, regulatory compliance, financial reporting, taxation, internal controls, contractual relationships, mergers and acquisitions, disclosures, and corporate reputation.  In addition, they may generate collateral interest from agencies such as the Securities and Exchange Commission, the Internal Revenue Service, the Department of Commerce, U.S. Customs and Border Protection, and other domestic and international regulators, as well as shareholders, lenders, auditors, customers, and commercial counterparties.

To help clients and counsel prepare, our Global Investigations & Dispute Resolution team has developed the Executive Perspectives series, offering practical frameworks for:

• Part I — Prevention & Mitigation: Strengthening governance, supplier oversight, internal controls, and enterprise trade fraud and forced labor risk management.

• Part II — Detection: Using forensic analytics, reporting channels, targeted monitoring, and data-driven testing to identify issues earlier and more effectively.

• Part III — Response & Investigation: Preserving privilege, conducting independent investigations, assessing legal and financial exposure, evaluating potential self-disclosure, and supporting effective remediation.

As these matters become increasingly complex and data-intensive, many organizations are pairing experienced legal counsel with independent multidisciplinary advisors to establish the facts rapidly, preserve privilege, analyze large volumes of trade, customs, procurement, logistics, operational, and financial data, assess legal and financial exposure across multiple regulatory regimes, strengthen governance and compliance programs, support disclosure and self-reporting decisions, validate remediation efforts, and provide objective analyses that can withstand regulatory scrutiny.

Our team regularly advises General Counsel, outside counsel, audit committees, boards of directors, compliance leaders, and internal audit functions—providing independent, multidisciplinary advice that complements legal strategy with objective financial, operational, investigative, and data-driven analyses. We bring together forensic accountants, Licensed Private Investigators, data analytics professionals, technical accounting specialists, former regulators, and other subject matter experts to help clients make informed, defensible decisions before, during, and after high-stakes regulatory matters.

Whether your organization imports products directly, relies on suppliers or distributors, invests in businesses with global supply chains, acquires companies with international operations, or simply seeks greater confidence in its governance, risk management, and compliance framework, we would welcome the opportunity to advise your General Counsel, outside counsel, board, and management team regarding prevention, detection, investigation, remediation, and regulatory response.