On June 3, 2026, President Donald Trump signed an Executive Order, “Strengthening Customs Enforcement,” (Order) directing the U.S. Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to implement comprehensive reforms targeting importers of record, customs brokers, and international supply chains.
Key Provisions
Importer of Record Requirements. Within 180 days, the DHS Secretary must take steps to revise importer eligibility regulations, guidance, and policies to require importers of record (IORs) to maintain minimum tangible domestic assets, increased bond coverage, or both; provide expanded data to CBP, including ownership, beneficial ownership, business affiliations, year organized, domestic asset disclosures, and anticipated import volumes; and maintain “good standing” based on compliance history and payment of customs liabilities. IORs that lose their good standing will be prohibited from importing into the United States or otherwise conducting activities directly related to importation, including designating a customs broker to act as an IOR on their behalf.
Heightened Restrictions on Foreign IORs. The Order prohibits foreign IORs from filing informal entries and imposes additional requirements for formal entry. Foreign IORs may not rely on continuous bonds unless CBP approves an exception after determining that the revenue will be fully protected and compliance assured. Foreign IORs must also be validated in CBP’s Customs Trade Partnership Against Terrorism (CTPAT), if eligible, or use a CTPAT-validated and CTPAT-licensed customs broker.
The Order defines “U.S. IOR” narrowly. For individuals, a U.S. IOR must be a U.S. citizen or lawful permanent resident. For an entity generally, it must be organized under U.S. law, located in the United States, and have controlling beneficial ownership by a U.S. citizen or lawful permanent resident; alternatively, an entity may qualify if it owns a significant amount of U.S. real property, as determined by the DHS. The DHS is also directed to provide further guidance on what it means for an entity to be “located in the United States,” with a focus on preventing shell companies, sham transactions, and artificial structures from qualifying as U.S. IORs. At a minimum, an entity must have its principal place of business in the United States, a physical presence where significant business activity is conducted in the United States, and sufficient tangible assets located in the United States.
Disclosure and Certification. CBP will establish heightened import disclosure and certification requirements, including certification of compliance with the Countering America’s Adversaries Through Sanctions Act and 18 U.S.C. § 545, disclosure of foreign tax and global business identifiers, and detailed supply chain and production-method information. Within 90 days, the DHS must also take steps to establish a requirement mandating submission of any documentation or information that the foreign exporter is required to submit to the foreign customs administration before export to the United States.
Enforcement and Penalties. The Order directs the DHS to strengthen customs enforcement, by enforcing liquidated damages claims against bonds, restricting in-bond utilization, increasing audits, and imposing maximum penalties on customs brokers who fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to cooperate in a timely manner with CBP information requests. Within 90 days, the DHS must also take steps to revise mitigation standards, including establishing a minimum penalty floor of not less than 50% of the assessed penalty (absent exceptional circumstances that materially impact national security), establishing a minimum liquidated-damages floor, and eliminating mitigation for repeat offenders.
Streamlined Seizure and Disposal. CBP is directed to expedite and enhance the seizure and disposal of non-compliant imports, including by reducing or eliminating regulatory burdens to voluntary abandonment, increasing bond requirements for high-risk shipments, authorizing third-party disposal, and utilizing authorities under 19 U.S.C. § 1612.
Transparency. The Order also directs the DHS to enhance transparency in customs enforcement, by establishing requirements for periodic review and expiration of confidentiality requests, as appropriate, and publishing annual enforcement transparency reports.
Practical Takeaways
These reforms generally will not take effect immediately. The DHS and CBP are expected to engage with affected stakeholders through the standard rulemaking process, providing importers, customs brokers, and other parties an opportunity to comment and adjust operations. However, certain aspects of the Order direct the DHS to act promptly through changes to regulations, policies, or guidance, which will require affected parties to respond now.
Importers and their counsel should evaluate corporate structures, bonding arrangements, beneficial ownership, domestic assets, and compliance history. Foreign-owned importers should assess whether they may qualify as U.S. IORs under the Order’s narrow definition or whether they may be treated as foreign IORs subject to materially higher compliance burdens.
Customs brokers should also prepare for heightened due diligence obligations and increased enforcement exposure, particularly when representing clients with prior compliance issues or insufficient transparency.
The Order further directs the DHS Secretary to submit recommendations for legislation to the President within 45 days, signaling that additional statutory changes may follow.
For more information, please review this White House fact sheet and CBP press release.