On June 3, 2026, President Donald J. Trump issued the Executive Order “Strengthening Customs Enforcement,” directing the U.S. Department of Homeland Security (DHS) and the U.S. Customs and Border Protection (CBP) to enhance enforcement of customs laws and to revise a wide range of customs regulations and procedures. The Order is a directive to the agencies; it does not itself impose new requirements. But it sets aggressive timelines for rulemaking that will reshape importer-of-record (IOR) rules, entry procedures, disclosure obligations, and penalties.
Key changes
Importer-of-record eligibility. DHS must revise IOR eligibility regulations, guidance, and policies within 180 days. The Order requires, among other things, that IORs maintain a minimum level of tangible domestic assets and/or bonding (with increased minimum bond coverage); that an IOR be designated and reported to CBP for both formal and informal entries; and that IORs disclose substantially more information, including anticipated import volumes, year organized, ownership and beneficial ownership, business affiliations, and domestic assets.
Distinction between U.S. and foreign IORs. The Order distinguishes between “U.S. IOR(s)” and “foreign IOR(s),” turning on citizenship or residency; place of organization; U.S. location; controlling beneficial ownership; and U.S. real property. The Order directs DHS to issue guidance on what it means to be “located in the United States,” aimed at preventing the use of shell companies, sham transactions, or artificial structuring to qualify as a U.S. IOR.
New restrictions on foreign IORs. The Order directs DHS to act promptly (with no fixed 180-day deadline) to (1) prohibit foreign IORs from filing informal entries; (2) for formal entries, to bar foreign IORs from relying on continuous bonds unless CBP specifically approves them; and (3) to require foreign IORs either to be CTPAT-validated (where eligible) or to use a CTPAT-validated and licensed customs broker.
IOR registry overhaul and risk-based tiers. DHS must (1) update the IOR registry within 180 days by removing inactive IORs; (2) confirm that active IORs are compliant; and (3) create risk-based tiers based on compliance history, enforcement actions, and audit results.
“Good standing” requirement. DHS must require all IORs to maintain “good standing” within 180 days, with CBP defining the standard based on the IOR’s and its affiliates’ compliance and payment history, among other factors. IORs that are not in good standing, including those found to have illegally imported fentanyl, “nitazene,” or other illicit substances or precursors, may not import into the United States or designate a broker to act as IOR on their behalf.
Enhanced and recurrent vetting. DHS must establish enhanced vetting within 180 days for all parties involved in importing, including foreign IORs; affiliates of IORs; customs brokers; custodians of bonded merchandise; and freight forwarders.
Expanded disclosure and certification. DHS must establish heightened import disclosure and certification requirements, including certifications of compliance with supply-chain statutes (such as CAATSA and 18 U.S.C. 545); disclosure of certain foreign tax and global business identifiers; and detailed supply-chain and production information (e.g., manufacturer product identifiers, composition, grade, or size). DHS must separately require submission, within 90 days, of any documentation a foreign exporter was required to file with its own customs administration before exporting to the United States.
Expanded disclosure and documentation. CBP is directed to require that importers provide more detailed ownership, affiliate, product, and supply-chain information. DHS must move within 90 days to require foreign export documentation submitted before shipment to the United States.
Higher penalties and greater broker exposure. DHS must (1) revise mitigation standards within 90 days to establish a minimum penalty floor of not less than 50% of the assessed penalty (absent exceptional circumstances materially affecting national security); (2) establish a minimum liquidated-damages floor; and (3) eliminate mitigation for repeat offenders. The Order directs maximum penalties against brokers who fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to cooperate with CBP information requests.
Streamlined seizure and disposal. DHS must take steps within 90 days to expedite seizure and disposal of non-compliant imports, including authorizing third-party disposal and increasing bond requirements for high-risk shipments.
Enforcement priorities and legislation. DHS and the Attorney General must prioritize enforcement involving forced-labor goods, misclassification, undervaluation, and illegal transshipment, including Enforce and Protect Act investigations (AD/CVD evasion). DHS must submit recommendations to the President for legislation to strengthen customs enforcement within 45 days.
Executive Authority
The Order directs agency rulemaking rather than imposing immediate requirements, so it raises legal and practical questions about how far the executive branch can go in unilaterally rewriting longstanding IOR and entry procedures. The Order anticipates this, invoking authorities such as 19 U.S.C. 66, 1484, 1498, 1623, 1624, and 4320, committing to implementation “consistent with applicable law, including the Administrative Procedure Act”; and directing a 45-day legislative proposal.
The Order arrives amid a heightened tariff environment. Recent initiated, proposed, and final actions under Sections 232 and 301, together with this Order, raise the stakes for noncompliance. In practical terms, import compliance may be moving beyond the traditional “reasonable care” standard toward an expectation of traceability, verification, and consistency across supplier, export, and import records.
Immediate Considerations
The Order directs agency rulemaking rather than imposing immediate requirements. But importers should begin reviewing their importer-of-record structures, supply-chain documentation, and broker relationships now, so they are positioned to respond as DHS and CBP issue new rules. Companies should begin to assess:
Whether any current arrangement could be treated as a “foreign IOR” structure under the Order's definitions, including its preliminary “located in the United States” criteria (subject to forthcoming DHS guidance);
Whether ownership, beneficial ownership, and affiliate information is complete and defensible, and whether tangible domestic assets and bonding would meet the heightened minimums CBP is expected to establish;
Whether foreign export records align with U.S. entry data, in anticipation of the pre-shipment foreign-documentation requirement as it develops; and
Whether broker relationships and CTPAT status would position the company for the anticipated formal- and informal-entry restrictions on foreign IORs.
Please contact us should you wish to discuss how this Executive Order may affect your imports, importer-of-record structure, customs compliance program, or customs broker relationships.
This alert is provided for general informational purposes and does not constitute legal advice.