Take a look inside a high-risk inspection warehouse in California. It reveals how Customs and Border Protection enforces tariffs, prevents duty evasion, and intercepts dangerous goods at America’s ports.

Long Beach

The U.S. Customs and Border Protection (CBP) is responsible for collecting tariffs on goods entering the country, making it the second highest revenue-generating agency after the IRS. Most tariff collections are handled electronically, with brokers submitting cargo details that determine the applicable tariffs. However, if discrepancies are detected, shipments are flagged for high-risk inspection at CBP warehouses. Common methods of duty evasion include undervaluation, misclassification, and transshipment. In addition to collecting tariffs, CBP also works to prevent the import of counterfeit goods, unsafe products, and dangerous drugs. Since the beginning of the Trump administration, there have been 34 executive orders related to tariffs.

Inside look at how the U.S. collects billions in tariffs

We are getting a rare look at how the tariff collection process works. Max Gordon takes us inside an inspection warehouse in California. When goods come to our ports from overseas, it's up to Customs and Border Protection to collect those tariffs and make sure they're paid to the federal government. In fact, behind the IRS, CBP is the second highest revenue-generating agency. And in the first eight months of this year, CBP has collected $170 billion in tariffs. Largely, the tariff collection process happens electronically. Brokers submit information like country of origin and type of cargo, and tariffs are collected from importers based off of that info. But if something seems off, the cargo is flagged and comes to one of CBP's several massive warehouses at the ports for what's known as a high-risk inspection. So duty evasion happens in different ways. There's undervaluation, where they're telling us, hey, this good is only worth $1,000 when really it could be worth $10,000. So with that, they could be paying less duty when they assign less value to it. There's also misclassification, where they're assigning a different tax code that does not belong. Most of the time, people want to assign it to a duty-free tax code, when in fact it could be 6% or 7% more. Then there's a practice called transshipment, where a product originates in one country but is labeled as coming from another country with a lower tariff. CBP also prevents the illegal importation of certain goods into the U.S. That can range from counterfeit luxury items like this suspicious pallet opened in front of us that was filled with fake designer handbags, to goods that can harm U.S. agriculture, which are detected by dogs, to dangerous products that don't adhere to safety regulations, to deadly drugs like fentanyl. I can go right back to my very own family and think about the impact it's had, right, and protect young kids going to school. You don't want them to, you know, exposed to, you know, things like fentanyl, the challenges that are out there today. Since President Trump took office, there have been 34 tariff-related executive orders. In San Pedro, California, Max Gordon, Fox 32 Chicago.

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Tel Aviv-Yafo

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Kyiv

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Pyongyang

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Cairo

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Mexico City

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Chicago

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Global Tariffs

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Riyadh

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Santa Clara

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Breakdown