Executive Order “Strengthening Customs Enforcement” Signals Sweeping U.S. Import Reform

President Trump issued an Executive Order (EO) on June 3, 2026, titled “Strengthening Customs Enforcement,” calling for the most comprehensive reform of U.S. Customs and Border Protection (CBP) import requirements in more than a decade. While the most significant impacts will fall on foreign entities importing goods into the U.S., all importers should anticipate heightened scrutiny and expanded enforcement once implementing agency actions and legislation are finalized. 

The EO directs agencies to implement changes within 90 to 180 days, depending on the specific measure.

Importer of Record Requirements

The EO instructs the Secretary of the U.S. Department of Homeland Security (DHS) and the Commissioner of CBP to revise importer eligibility rules to restrict imports by foreign entities or entities with a history of noncompliance with customs and trade laws. 

Under the EO, a U.S. importer of record would be required to:

• Maintain minimum tangible domestic assets, bonding, or both;
• Be designated and reported to CBP for all entries;
• Provide CBP with additional data and identification information, including:
  • Anticipated import volumes;
  • Year organized;
  • Ownership and beneficial ownership;
  • Business affiliation; and
  • Domestic asset disclosures; and
• Maintain “good standing” with CBP based on compliance history and payment of customs liabilities by the importer and its affiliates.

The EO also imposes new restrictions on foreign entities which: 

• Are prohibited from filing informal entries; 
• May not rely on continuous bonds for formal entries without CBP approval; and 
• Must be validated in CBP’s Customs Trade Partnership Against Terrorism (CTPAT) or use a CTPAT-validated and licensed customs broker to file entries. 

A “foreign entity” includes entities not organized under U.S. law, not located in the U.S., lacking U.S. citizen or lawful permanent resident beneficial owners, or lacking significant U.S. real property. 

To qualify as a U.S.-located entity, an entity must have:

• Its principal place of business in the U.S.;
• A physical presence where significant business activity is conducted in the U.S.; and
• Sufficient U.S. tangible assets, considering the company’s size and scale and whether it functions as an instrumentality of a foreign manufacturer that does not have a substantial U.S. presence.

The definitions of a foreign entity and U.S. entity are subject to future regulatory guidance and interpretation. 

The EO explicitly aims to prevent “entities from using shell companies, sham transactions, or artificial corporate or organizational structuring” to qualify as a U.S. importer. It also requires DHS and CBP to:

• Review and “clean” the importer registry, remove inactive importers and create risk-based tiers of importers based on compliance history, prior enforcement actions, and audit results; and 
• Enhance and increase vetting of all individuals and entities involved in U.S. import activities (e.g., importers, customs brokers, bonded merchandise custodians, freight forwarders).

Import Enforcement

The EO directs DHS, CBP, and the Attorney General to implement a broad set of enforcement-focused actions, including:

• Heightened import disclosure and certification requirements, such as:
  • Certification of compliance with critical supply chain requirements;
  • Disclosure of foreign tax and global business identifiers;
  • Detailed supply chain and production information, including manufacturer product identifiers (e.g., mode/style number) or key specifications (e.g., composition, grade, or size); and
  • Submission of documentation provided to foreign customs authorities;
• Increased enforcement of liquidated damages claims;
• Restrictions on in-bond importations;
• Expanded audits;
• Maximum penalties for customs brokers that fail to conduct due diligence, repeatedly represent non-compliant clients, or fail to cooperate with CBP;
• Prioritization of enforcement of federal law involving forced labor, tariff misclassification, undervaluation, and illegal transshipment;
• Minimum penalty floors, including at least 50% of the assessed penalty, absent exceptional circumstances, as well as minimum liquidated damages thresholds;
• Elimination of customs penalty mitigation for repeat offenders; and
• Accelerated seizure and disposal of noncompliant imports.

The EO also requires legislative recommendations within 45 days to further strengthen customs enforcement. 

Practical Considerations for Importers

Importers, customs brokers, freight forwarders, and other supply chain participants should begin assessing the potential impact of the EO immediately. Key considerations include:

• Foreign and nonresident importers should expect significant barriers to continuing import operations under current structures;
• Entities using informal entry procedures should prepare alternative supply chain solutions;
• All importers should evaluate their overall U.S. import compliance history to assess the risk of:
  • Being deemed not in “good standing” (and therefore prohibited from importing); or 
  • Being placed in a high-risk importer tier where they may be subject to increased scrutiny; and
• Supply chain partners should prepare for increased audits and enforcement.

Given the EO’s aggressive timelines and broad scope, companies should begin planning now to mitigate operational disruption and compliance risk.