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On June 3, 2026, President Trump issued an Executive Order directing the Department of Homeland Security and U.S. Customs and Border Protection (“CBP”) to implement within the next 3 to 6 months new requirements designed to maximize customs enforcement in the United States. Noting that customs reform is “long overdue” and that current mechanisms and processes have allowed “malign actors” to evade the law, the Order focuses primarily on (1) new importer of record (“IOR”) requirements, and (2) prioritizing and strengthening enforcement tools. Although there are no immediate changes to the law, the President’s directives will place heavy burdens on all IORs, restrict entry options for foreign IORs and increase bond and penalty amounts in the future.
Given the short time frame for agency implementation, we recommend that importers act swiftly to evaluate their existing importer profiles, affiliates, supply chains and compliance programs in anticipation of the changes below, and to avoid disruptions to import operations, penalties or other enforcement actions.
Importer Requirements
The Trump administration is ramping up the vetting process for both foreign and domestic IORs, as well as other entities involved in the import process. The new requirements will focus on importer eligibility and the securing of customs revenue. Below are some of the key changes to come:
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Know your importer – IORs will need to provide CBP with more data and information, to include identification, import volumes, actual and beneficial ownership, business affiliations and domestic assets. They will also need to maintain“good standing” with CBP based on their compliance history or risk losing import privileges. The President cited illegal importation of fentanyl, fentanyl precursors and other illicit substances as a basis to lose good standing. Finally, the IOR registry will be updated to ensure IORs are compliant and IORs will be assigned into risk-based tiers based on their compliance history.
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Secure the revenue – CBP will require IORs to have minimum levels of domestic assets, bonding, or both, and will increase the minimum bond amount required to import into the United States.
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Formal entry only – To address high volumes of low value imports from foreign entities, non-resident or “foreign” IORs will not be allowed to file informal entries. Formal entry will be required and non-resident IORs will need to be certified in the Customs-Trade Partnership Against Terrorism (“CTPAT”) or use a CTPAT validated broker. Additionally, non-resident IORs will not be permitted to use a continuous bond unless they can prove that the revenue is protected and compliance is assured.
Disclosures and Certifications
The ability to import into the United States will soon require various disclosures and certifications. Failure to comply with these requirements will result in civil and criminal penalties. The President has directed that these requirements, once implemented by CBP, include the following:
- Certifying compliance with the Countering America’s Adversaries through Sanctions Act (“CAATSA”) and other laws to be determined by CBP
- Disclosing foreign tax and global business identifiers
- Disclosing detailed information about an imported product’s supply chain and production methods
- Submission of any documentation or information that a foreign exporter was required to submit to the foreign customs administration to export to the United States
Enforcement Tools
While customs enforcement activity has been elevated for years, the President has mandated the prioritization of even more stringent enforcement actions by CBP, to include the following:
- Bolstering conditions for participation in CTPAT
- Enforcing liquidated damages claims
- Restricting in-bond utilization
- Increasing audits
- Imposing maximum penalties on brokers that repeatedly represent noncompliant clients, fail to conduct due diligence or fail to cooperate timely with CBP requests
- Prioritization of enforcement as to forced labor, misclassification, undervaluation, illegal transshipment and the Enforce and Protect Act (“EAPA”) (evasion of antidumping and countervailing duties)
- Within 90 days, all mitigation standards must be revised to establish a minimum penalty not less than 50% of the original penalty, minimum liquidated damages amounts and the elimination of mitigation for repeat offenders
The President also noted separately that within 90 days, the Secretary of the Department of Homeland Security must expedite and enhance seizures and streamline the disposal of non-compliant imports by eliminating regulatory burdens onvoluntary abandonment, increasing bond requirements for “high-risk” shipments, authorizing third-party disposals and increasing utilization of statutory seizure and summary sale authority under 19 U.S.C. § 1612.
The President has directed that the Secretary, in consultation with the head of other relevant agencies, make recommendations for legislation to strengthen customs enforcement and, in one year, submit to him a report on the effectiveness of the measures taken pursuant to the Executive Order.
Please let us know if you have questions about how to prepare for the forthcoming changes outlined above.
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