- within Compliance topic(s)
On June 3, 2026, the White House issued an Executive Order (“Strengthening Customs Enforcement”) that directs the U.S. Department of Homeland Security (“DHS”) and U.S. Customs and Border Protection (“CBP”) to take a series of actions intended to combat customs fraud, transshipment, forced labor imports, duty evasion, and other trade-related violations. While many of the directives will require future rulemaking or policy changes before becoming effective, the Order signals a significant increase in customs enforcement and scrutiny of foreign importers.
Key directives include:
1. Increased scrutiny of foreign importers of record
The Order identifies foreign importers of record as an enforcement concern and directs CBP to develop enhanced requirements for foreign entities importing goods into the United States. These requirements may include:
- Increased bond requirements;
- Additional disclosures regarding ownership and business operations;
- Disclosure of affiliations and beneficial ownership;
- Information regarding anticipated import volumes and U.S. assets.
2. Restrictions on informal entry procedures
The Order directs CBP to revise regulations so that foreign importers of record are no longer eligible to use informal entry procedures and instead must utilize formal entry processes.
3. Creation of an importer “good standing” requirement
CBP is directed to establish standards under which importers must remain in good standing to continue importing merchandise into the United States. Importers that fail to meet those standards could face restrictions on import activity.
4. Enhanced enforcement against customs fraud
The Order emphasizes enforcement against:
- Transshipment schemes;
- Country-of-origin evasion;
- Undervaluation;
- Misclassification;
- Forced labor imports;
- Other customs violations.
5. More stringent penalty policies
CBP is directed to revise penalty mitigation practices and establish a minimum mitigation threshold under which importers generally would remain responsible for at least 50 percent of assessed penalties absent exceptional circumstances.
6. Additional legislative proposals
DHS must submit recommendations to the President within 45 days regarding further legislative changes that could strengthen customs enforcement authorities.
Practical Implications
The Executive Order does not itself impose immediate new compliance obligations on importers. Instead, it directs DHS and CBP to develop regulations, procedures, and policies implementing the Administration’s enforcement objectives. However, the Order clearly signals increased scrutiny of foreign importers of record and suggests that companies importing into the United States through non-U.S. entities should closely monitor forthcoming regulatory developments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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