This bill, titled the "Fighting Trade Cheats Act of 2026," aims to strengthen enforcement against customs fraud by significantly increasing civil penalties for fraudulent and grossly negligent violations of the Tariff Act of 1930. For fraudulent violations, the penalty is raised to three times the domestic value of the merchandise, and offenders, along with their affiliated persons, face a five-year prohibition from importing merchandise into the United States. A presumption of knowledge is also established for purchasers dealing with multiple affiliated violators.

For grossly negligent violations, penalties are increased to three times the domestic value or 10 times the loss of duty or fee, alongside a two-year import prohibition for the violator and their affiliated persons. Furthermore, the bill introduces a new private right of action, allowing an interested party—such as a U.S. manufacturer, union, or trade association—to bring a civil action against persons causing injury through fraudulent or grossly negligent customs violations. Successful plaintiffs can recover compensatory damages, an additional penalty of three times those damages, equitable relief, and attorney's fees.

The legislation also amends the Trade Facilitation and Trade Enforcement Act of 2015 to exclude persons who have committed fraudulent or grossly negligent customs violations, as well as their affiliated persons, from participating in the importer of record program. This exclusion also applies to persons whose importer of record numbers are subsequently revoked if they are found to have committed such violations. The definition of "affiliated person" is expanded for this section to prevent evasion, considering factors like similar imported merchandise, common exporters, and historical import volumes.