DDP Shell Companies and Trade Fraud Risks

🚨 Know What’s Behind the Quote: The DDP Shell Game

Some deals look too good to be true, and they are. A growing number of freight forwarders are offering “sweet” DDP quotes by routing freight through U.S. shell companies. These entities register as the Importer of Record, use low-cost bonds to delay duty payments, and disappear before bills are due.

📌 Here’s how it works:

• Shell companies (often in Delaware or New Mexico) are set up with minimal disclosure
• A $50,000 bond is used to import goods with $250,000+ in tariff liability
• The shell entity becomes the Importer of Record, not you
• Goods clear customs and are delivered
• Tariffs go unpaid, the shell dissolves, and enforcement risk rises

👀 The result?

• CBP and DOJ are launching aggressive enforcement under the new Trade Fraud Task Force
• Importers can face audits, seizure of goods, and reputational harm
• Sureties and legitimate IORs may be left cleaning up the damage

🛑 If you’re not sure who is listed as the Importer of Record on your shipments, or how your DDP partner is paying duties, it’s time to find out.

📣In August 2025, the DOJ announced a $12.4 million False Claims Act settlement against a Texas-based company and its president for evading China tariffs. This follows the creation of a Trade Fraud Task Force targeting shell schemes, misclassification, transshipment, and other customs fraud.

✅ We help importers stay compliant, protect their supply chain, and avoid surprises.

✅ Have questions about these changes?

Let us review your shipments, HTS codes, and strategy for potential savings.

I am here and ready to help. Complete our Quick Quote Request form today and we’ll get back to you with a custom strategy to maximize your savings.

📞 Call 833 782 7628 Ext. 1
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