CBP Hosts a Platform for Gathering Forced Labor Claims from Competitors and the Public, with Cash Rewards for some Whistleblowers
The US Custom and Border Protection’s e-Allegations program hosts a whistleblower platform for anyone to report suspected commercial trade violations. The goal is to protect U.S. economic security, ensure fair competition, and prevent unsafe goods or products made with forced labor from entering U.S. commerce.
Common violations reported through the portal include:
Intellectual Property Rights infringement (counterfeits)
Misclassification and undervaluation of merchandise
Forced labor violations
Health and safety risks
Trade agreement violations and illegal transshipment
For an e-Allegation to trigger enforcement (such as increased bonding, targeted inspections, or audits), tips must include actionable intelligence including violator names and addresses and supporting documents such as product photographs, invoices, shipping manifests, packing lists, and screenshots of marketing materials.
Once an allegation is filed, CBP keeps the progress of the investigation confidential as required by law, so the portal will only show whether a case "Open" or "Closed."
However, under the Customs moiety statute, an informant can receive an award of up to 25% of the net recovery (duties, fines, penalties, or forfeitures), up to $250,000, if a DHS Form 4623 is submitted in connection with the e-Allegation.
For massive, systemic customs fraud, whistleblowers can turn to the False Claims Act. By filing a qui tam lawsuit under seal in federal court, whistleblowers can receive 15% to 30% of the government's total recovery—with no cap. A customs fraud whistleblower attorney should be consulted before using the e-Allegations portal in these cases.
Supply Chain Whistleblowing Is Only Starting
The EU will soon launch analogous whistleblower platforms to accompany the EU Deforestation Regulation, the EU Forced Labor Regulation, and corporate due diligence required by CSDDD and CSRD. By taking the time to compile thorough, documented, and substantiated evidence, you can directly assist U.S. Customs in removing illicit actors from the market—ensuring that those who invest in compliance remain competitive.
For more information about protecting your supply chain from fraud, waste or abuse, get in touch with the experts at Sourcemap: https://www.sourcemap.com/company/request-a-demo
