White House Overhauls Customs Rules to Boost Importer Accountability

White House Overhauls Customs Rules to Boost Importer Accountability

On June 3, 2026, President Trump signed an executive order aimed at significantly strengthening U.S. customs enforcement. Titled “Strengthening Customs Enforcement,” this directive mandates a broad rewrite of existing customs rules, placing greater emphasis on the accountability of importers of record. The changes are designed to address what the administration identified as systemic inefficiencies, loopholes, and outdated processes that allow for the evasion of federal law. These issues have contributed to problems ranging from unpaid duties and product safety concerns to intellectual property theft and the import of goods linked to forced labor.

The executive order directs the Department of Homeland Security (DHS) to revise importer eligibility rules, introduce new filing limitations for foreign importers of record, and propose legislative recommendations. These measures are intended to create a more robust and secure trade environment for the United States.

Tightening Standards for Importers of Record

A central focus of the executive order is the importer of record, the entity legally responsible for customs entries and duties. Within 180 days, DHS must update regulations to ensure that an importer of record maintains minimum tangible domestic assets, bonding, or both, as determined by U.S. Customs and Border Protection (CBP). This requirement aims to ensure that importers have a vested interest and physical presence within the U.S., making them more accessible for enforcement actions.

Furthermore, CBP will now require that an importer of record be formally designated and reported for all formal entries under 19 U.S.C. 1484 and informal entries under regulations tied to 19 U.S.C. 1498. The order also introduces new data demands for importers, including anticipated import volumes, the year the business was organized, disclosures of ownership and beneficial ownership, business affiliation details, and domestic asset information. This increased transparency is intended to provide CBP with a clearer picture of who is importing goods into the country and their financial standing.

New Requirements for Foreign Importers

Foreign importers of record will face stricter conditions under the new rules. The executive order directs the Homeland Security secretary to change rules so that a foreign importer of record cannot file informal entries under regulations related to 19 U.S.C. 1498. This is particularly aimed at low-value articles, where foreign importers often handle high volumes and may have less familiarity with U.S. customs law, leading to potential compliance issues.

Formal entries by foreign importers will also be subject to new conditions. A foreign importer will not be able to rely on a continuous bond to meet entry requirements unless CBP grants permission after confirming that revenue will be fully protected and compliance is assured. Additionally, foreign importers may need to obtain validation through CBP’s Customs Trade Partnership Against Terrorism (CTPAT) program or use a CTPAT-validated and licensed customs broker to file entries. These measures are designed to mitigate the risks associated with foreign entities that may find it easier to evade customs debts when their assets and personnel are located overseas.

Establishing a “Good Standing” Standard

Within 180 days, DHS must establish a “good standing” standard for all importers of record. CBP will define this standard based on factors such as compliance history, the timely payment of customs liabilities, and other relevant aspects concerning the importer and its affiliates. The order provides a clear example of who would fail this test: importers found to have illegally imported substances like fentanyl, nitazene, or other illicit contraband, including precursor chemicals. Such importers will not be considered in “good standing” with CBP.

Importers who are not in good standing will face significant consequences, including being barred from accessing the U.S. market. They will be prohibited from importing goods into the United States or conducting activities directly related to importation, such as appointing a customs broker to act on their behalf. This new standard aims to ensure that only compliant and trustworthy entities are permitted to engage in import activities.

Enhancing Vetting and Disclosure Requirements

The executive order also mandates updates to CBP’s importer registry within 180 days. The agency will remove inactive importers of record, confirm that active importers meet disclosure and regulatory rules, and create risk-based tiers based on compliance history, past enforcement actions, and audit results. Furthermore, enhanced vetting, including recurrent vetting, will be established for individuals and entities involved in import activities. This includes foreign importers of record, their affiliates, customs brokers, custodians of bonded merchandise, and freight forwarders.

Disclosure rules will be expanded beyond just importer identity. DHS will establish heightened import disclosure and certification requirements, including certifications related to the Countering America’s Adversaries through Sanctions Act and other supply chain laws identified by CBP in conjunction with other agencies. Importers will be required to disclose certain foreign tax and global business identifiers and provide more detailed production-level information about the goods they are importing. This includes manufacturer product identifiers, such as model or style numbers, and specifications like composition, grade, or size. Criminal fines and civil penalties will be enforced for violations of these disclosure rules.

Prioritizing Enforcement and Streamlining Seizures

The order instructs the Secretary of Homeland Security and the Attorney General to prioritize federal enforcement efforts related to goods produced by forced labor, as well as imports involving misclassification, undervaluation, and illegal transshipment. A separate requirement, to be established within 90 days, will compel foreign exporters to submit documentation or information they had to file with their own customs administration before exporting goods to the United States.

Enforcement measures will also be bolstered through various means. The Secretary of Homeland Security is directed to maximize customs enforcement within applicable law. This includes enforcing liquidated damages claims against bonds, restricting in-bond utilization, increasing audits, and imposing maximum penalties on brokers who fail to conduct due diligence, repeatedly represent noncompliant clients, or do not cooperate with CBP requests. Penalty relief will also be narrowed, with DHS revising mitigation standards to set a minimum penalty floor of at least 50 percent of the assessed penalty, except in exceptional circumstances affecting national security. A minimum liquidated damages floor will be established, and mitigation for repeat offenders will be eliminated.

Rules for seizure and disposal of non-compliant imports will also be expedited. Within 90 days, DHS must take steps to speed up and improve these processes by reducing regulatory burdens for voluntary abandonment, increasing bond requirements for high-risk shipments, authorizing third-party disposal, and utilizing authority under 19 U.S.C. 1612.

Transparency and Accountability Measures

Transparency requirements are also being introduced alongside the enforcement push. Within 90 days, DHS will establish standards for periodic review and expiration of confidentiality requests, where appropriate, and will issue annual enforcement transparency reports. The order also clarifies who qualifies as a U.S. importer of record, defining it as a U.S. citizen, lawful permanent resident, or an entity organized under U.S. law that is located in the U.S. and controlled by U.S. citizens or lawful permanent residents, or an entity that owns substantial U.S. real property.

The order emphasizes that an entity cannot qualify as being located in the United States based solely on its legal structure. Future guidance will focus on preventing shell companies, sham transactions, or artificial corporate structuring. An entity must demonstrate its principal place of business is in the United States, possess a physical presence where substantial business activity occurs, and have sufficient tangible assets within the country. Finally, within one year, the Homeland Security secretary must submit a report to the president measuring the effectiveness of the executive order, ensuring continuous improvement in customs enforcement.