Enforce and Protect Act (EAPA) Webinar

EAPA Enforcement Surge

EAPA has become a frontline tool in U.S. trade enforcement, especially as geopolitical frictions drive up tariffs and scrutiny on imports. In 2025, investigations revealed massive evasion schemes, including a record case involving Chinese goods rerouted through Indonesia, South Korea, and Vietnam to dodge antidumping and countervailing duties. This surge stems from new policies targeting transshipment, where goods are falsely declared as originating from non-sanctioned countries to avoid higher duties.

Domestic industries, particularly in steel, chemicals, and solar, are the primary beneficiaries. EAPA empowers them to file allegations against suspected evaders, leading to swift CBP actions like suspending liquidations and demanding cash deposits. For instance, U.S. steel producers have seen relief from dumped imports, with associations like the Committee on Pipe and Tube Imports pushing for legislative enhancements to close loopholes. However, this has ripple effects: legitimate importers face delays and increased bonding requirements, disrupting supply chains and raising costs.

The real-world stakes are high. Evaders risk retroactive duties plus interest, civil penalties up to twice the lost revenue, and even criminal charges under the False Claims Act. In one 2025 settlement, a company paid $54 million for misrepresenting tungsten carbide origins to evade Section 301 duties. Deadlines are tight—CBP must act within 90 days on interim measures—leaving little room for error. Non-compliance can lead to seized shipments and blacklisted suppliers, as seen in cases where entire networks of shell companies were dismantled.

Less obvious tensions arise from EAPA's whistleblower dynamic. While it levels the playing field, allegations can stem from competitive rivalries, burdening innocent parties with investigations. Trade-offs include stronger U.S. revenue collection—over $250 million from a single probe—but at the expense of higher compliance costs for global firms. As e-commerce and de minimis exemptions tighten, EAPA's scope may expand beyond AD/CVD to forced labor and other violations, amplifying its impact on international trade flows.