Customs and Tariff Fraud: $45B in Estimated Annual Evasion

CBP and ICE estimate $45 billion in annual tariff evasion, with transshipment through third countries as the primary method at 38% of cases. Section 301 tariff evasion grew 240% since 2018 as importers reroute Chinese goods through Vietnam, Malaysia, and Thailand.

Steel and aluminum evasion accounts for $8.7 billion annually. CBP collected $1.1 billion in additional duties from enforcement in FY2023, a small fraction of the estimated total evasion. De minimis loophole abuse grew 340% since 2020.

Analysis based on CBP Trade Statistics, ICE HSI enforcement data, GAO-23-105608, and ITC reports.