On June 3, 2026, the White House issued an executive order titled Strengthening Customs Enforcement. The order directs the U.S. Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to revise rules governing the importer of record (IOR) population. Customs brokers, freight forwarders, and other parties involved in the importation process also fall within its scope.
Principal provisions include higher bonding and tangible domestic asset requirements, along with a prohibition on foreign IORs filing informal entries. Additionally, the order establishes new disclosure and certification rules and a minimum penalty floor of 50 percent on mitigated violations. Most provisions require subsequent rulemaking by DHS and CBP.
According to the accompanying White House fact sheet, the changes are intended to align U.S. customs policy with practices in trading partner jurisdictions that restrict foreign entities from acting as importers of record without a verified domestic partner.
IMPORTER OF RECORD REQUIREMENTS
Within 180 days, DHS must revise IOR eligibility rules. Required revisions include:
- A minimum level of tangible domestic assets, bonding, or both, maintained at all times by each importer of record, as determined by CBP
- An increase in the minimum required bond coverage for importers of record
- Designation and reporting of an IOR, backed by a bond or sufficient tangible domestic assets, for every formal entry and every informal entry
- Additional data submissions, including anticipated import volumes, year organized, ownership and beneficial ownership disclosures, business affiliation disclosures, domestic asset disclosures, and other data deemed necessary by CBP
Within the same 180-day window, CBP must update the IOR registry. Updates include removal of inactive accounts and confirmation of compliance among active ones. Furthermore, CBP must create risk-based tiers reflecting compliance history, enforcement actions, and audit results.
RESTRICTIONS ON FOREIGN IMPORTERS OF RECORD
The order directs the Secretary to “promptly” prohibit foreign importers of record from filing informal entries. For formal entries, foreign IORs face additional conditions:
- Continuous bonds may not be used to meet bond requirements, except where CBP permits after a showing that revenue will be protected and compliance assured
- The foreign IOR must hold validation under the Customs Trade Partnership Against Terrorism (CTPAT) program, where eligible, or use a CTPAT-validated and licensed customs broker to file entries
Section 10 defines a U.S. IOR as a U.S. citizen, lawful permanent resident, or qualifying U.S.-organized entity. A qualifying entity must be located in the United States. Additionally, it must maintain controlling beneficial owners who are U.S. citizens or lawful permanent residents at all times. Alternatively, an entity may qualify by owning a significant amount of U.S. real property, as determined by the Secretary.
A foreign IOR is any IOR that does not meet the U.S. IOR definition. To qualify as “located in the United States,” an entity must satisfy each of the following criteria:
- A principal place of business in the United States
- A physical presence with significant business activity in the United States
- Sufficient tangible U.S. assets relative to operational scale
The Secretary will issue further guidance to prevent shell companies and sham structures from qualifying as U.S. importers of record.
GOOD STANDING REQUIREMENT FOR IMPORTERS AND ENHANCED VETTING
Within 180 days, CBP must require all importers of record to maintain “good standing.” The standard is defined by reference to compliance history and payment of customs liabilities by the IOR and its affiliates. Notably, an IOR found to have imported fentanyl, nitazene, other illicit substances, contraband, or precursor chemicals will not qualify as in good standing. An IOR not in good standing may neither import goods nor designate a customs broker to act as IOR on its behalf.
Within the same window, CBP must establish enhanced and recurring vetting procedures. Specifically, vetting will apply to foreign importers, affiliates of IORs, customs brokers, custodians of bonded merchandise, and freight forwarders.
IMPORTER DISCLOSURE AND CERTIFICATION REQUIREMENTS
The order directs CBP to establish heightened import disclosure and certification requirements, including:
- Certifications of compliance with supply chain laws, including the Countering America’s Adversaries Through Sanctions Act (CAATSA), and additional laws designated by CBP in consultation with relevant agencies
- Disclosure of foreign tax and global business identifiers
- Detailed supply chain and production information, including the manufacturer’s product identifier (e.g., model or style number) and key specifications (e.g., composition, grade, size)
Within 90 days, CBP must additionally require importers to submit any documentation provided by the foreign exporter to its own customs administration prior to export to the United States. This new layer of trade compliance will affect virtually every cross-border shipment.
ENFORCEMENT AND PENALTIES FOR IMPORTERS AND BROKERS
Within 90 days, CBP must revise mitigation standards. Required revisions include:
- A minimum penalty floor of not less than 50 percent of the assessed penalty, absent exceptional circumstances materially affecting national security
- A minimum liquidated damages floor
- Elimination of mitigation for repeat offenders
Furthermore, the order directs CBP to undertake the following enforcement actions against noncompliant importers and brokers:
- Enforce liquidated damages claims against bonds for noncompliance
- Restrict in-bond utilization
- Increase audits
- Impose maximum penalties on brokers that fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to respond in a timely manner to CBP requests for information
The Secretary and the Attorney General are directed to prioritize enforcement against forced labor importations, misclassification, undervaluation, and illegal transshipment. Priority enforcement also includes investigations conducted pursuant to the Enforce and Protect Act (EAPA).
SEIZURE AND DISPOSAL OF NON-COMPLIANT IMPORTS
Within 90 days, CBP must take action, to the maximum extent permitted by law, to expedite the seizure and disposal of non-compliant imports. Required actions include:
- Reducing or eliminating regulatory burdens on voluntary abandonment
- Increasing bond requirements for high-risk shipments
- Authorizing third-party disposal
- Utilizing authorities for summary forfeiture and sale
TRANSPARENCY
Within 90 days, and in consultation with relevant agency heads, CBP must enhance customs transparency. Required measures include periodic review and expiration of confidentiality requests, along with the publication of annual enforcement transparency reports. Furthermore, each measure must align with applicable law, national security considerations, and other limits on the disclosure of sensitive information.
LEGISLATIVE RECOMMENDATIONS AND REPORTING
The order directs the Secretary to submit legislative recommendations to the President within 45 days. Additionally, the Secretary will consult with the Director of the Office of Management and Budget and other relevant agency heads. The Senior Counselor for Trade and Manufacturing will then transmit the recommendations to the President.
Furthermore, the Secretary must submit an effectiveness report to the President within one year. The United States Trade Representative, the Assistant to the President for Economic Policy, and the Senior Counselor for Trade and Manufacturing will transmit the report.
IMPLEMENTATION TIMELINE
The order sets staggered deadlines for required agency action affecting every importer category:
| TIMELINE | REQUIRED ACTION |
| Promptly | Prohibit foreign importers of record from filing informal entries; impose new conditions on foreign IOR formal entries. |
| Within 45 days | Submit legislative recommendations to the President. |
| Within 90 days | Revise mitigation standards, including a 50 percent penalty floor; require foreign exporter documentation; expedite seizure and disposal; implement transparency measures. |
| Within 180 days | Revise IOR eligibility rules; establish a “good standing” requirement; update the IOR registry; establish enhanced vetting procedures. |
| Within 1 year | Submit an effectiveness report to the President. |
FREQUENTLY ASKED QUESTIONS
When does the executive order take effect?
Most provisions require DHS or CBP rulemaking, with deadlines ranging from 90 to 180 days. Certain directives apply “promptly,” which may indicate faster implementation through policy or guidance updates. According to the White House fact sheet, affected parties will generally have an opportunity to engage through the standard rulemaking process.
How does the order define a foreign importer of record?
A foreign importer of record is any IOR that does not meet the U.S. IOR definition. Specifically, this includes any individual who is not a U.S. citizen or lawful permanent resident. It also includes any entity that is not organized under U.S. law, is not located in the United States, or does not maintain controlling U.S. beneficial owners at all times. Additionally, the order treats an entity as foreign if it does not own a significant amount of U.S. real property, as determined by the Secretary.
Can foreign importers continue to file formal entries?
Yes, subject to new conditions. Foreign importers of record generally may not rely on continuous bonds, except where CBP permits after a revenue and compliance showing. Furthermore, the foreign IOR must hold CTPAT validation, where eligible, or use a CTPAT-validated and licensed customs broker.
What is the minimum penalty floor?
CBP must establish a mitigation floor of not less than 50 percent of the assessed penalty, absent exceptional circumstances materially affecting national security. Additionally, the order requires a minimum liquidated damages floor and eliminates mitigation for repeat offenders.
How does the order affect customs brokers and freight forwarders?
Customs brokers, freight forwarders, custodians of bonded merchandise, and IOR affiliates are subject to enhanced and recurring vetting procedures. Furthermore, the order directs CBP to impose maximum penalties on brokers that fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to respond to CBP requests for information in a timely manner.
What new product data must importers provide at entry?
Specifically, new disclosures include manufacturer product identifiers, such as model or style numbers, and key product specifications, such as composition, grade, and size. Additionally, the order requires foreign tax and global business identifiers and certifications of compliance with supply chain laws, including CAATSA and 18 U.S.C. 545.
Does the order modify de minimis treatment?
No. The order addresses IORs, bonding, vetting, disclosures, and enforcement. The accompanying fact sheet references prior actions on de minimis and notes statutory changes scheduled to take effect July 1, 2027. However, the June 3, 2026 order itself does not directly modify de minimis treatment.
ORIGINAL SOURCES
- White House Executive Order, Strengthening Customs Enforcement (June 3, 2026): gov/presidential-actions/2026/06/strengthening-customs-enforcement
- White House Fact Sheet, President Donald J. Trump Strengthens Customs Enforcement (June 3, 2026): gov/fact-sheets/2026/06/fact-sheet-president-donald-j-trump-strengthens-customs-enforcement
- CBP, Customs Trade Partnership Against Terrorism (CTPAT): gov/border-security/ports-entry/cargo-security/ctpat
- CBP, Enforce and Protect Act (EAPA): gov/trade/trade-enforcement/tftea/enforce-and-protect-act-eapa
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