Trump Administration Issues New Executive Order on Strengthening Customs Enforcement

On June 3, 2026, the Trump administration issued an executive order directing US Department of Homeland Security (DHS) and US Customs and Border Protection (CBP) to take measures to reduce systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes that have enabled customs noncompliance. The executive order identifies issues such as undervaluing imports, withholding critical information about importers of record (IORs) and goods, avoiding duty payments, and transshipment schemes. These measures will impose new compliance requirements on all IORs, additional compliance requirements on foreign IORs, and increase enforcement activities and penalties for noncompliance.  

Increased Scrutiny Over Importers of Record 

Within 180 days, CBP is directed to issue regulations requiring all IORs to meet enhanced eligibility and reporting standards. These include requirements to:  

• Maintain a minimum level of tangible domestic assets, bonding, or both as determined by CBP.
• Increase the minimum bond coverage for an IOR.
• Be formally designated and reported to CBP and required to submit a bond and/or sufficient tangible domestic asset for all formal and informal entries.
• Provide expanded disclosures including anticipated import volumes, year of organization, ownership and beneficial ownership information, business affiliations, domestic assets, and any other data that CBP deems necessary.
• Maintain "good standing" with CBP, based on a history of compliance with US customs and trade laws and payment of required customs liabilities. IORs found not to be in good standing will not be allowed to import into the Untied States or conduct other activities directly related to the importation of goods, including designating a customs broker to act as IOR on their behalf.
• Update the IOR registry and create risk-based tiers for IORs based on factors including compliance history, enforcement actions, and audit results.

Additional Requirements for Foreign Importers

The executive order imposes further restrictions on foreign importers to address issues faced by CBP in enforcing laws against foreign acts. A "foreign IOR" is defined as an entity that is not organized under the laws of the US; is not located in the US; does not have, at all times, controlling beneficial owners who are US citizens or lawful permanent residents; or does not own a significant amount of real property in the US. CBP is directed to issue further guidance on the distinction between a foreign IOR and a US IOR. But at a minimum, to be located in the US, an entity must have (1) its principal place of business in the US, (2) a physical presence where significant business activity is conducted in the US, and (3) sufficient domestic assets/real property.

The executive order directs CBP to issue guidance requiring foreign IORs to comply with additional restrictions, including that:

• A foreign IOR may no longer file informal entries.
• A foreign IOR may no longer use continuous bonds, unless it can demonstrate that the revenue would be fully protected and CBP could be assured of compliance with the laws, regulations, and instructions enforced by CBP.
• A foreign IOR must be validated under CBP’s Customs Trade Partnership Against Terrorism (CTPAT) or use a CTPAT-validated broker.

Import Disclosure and Certification Requirements

Within 90 days, CBP is directed to begin implementing enhanced import disclosure and certification requirements that apply to all importers. These will require importers to:

• Certify compliance with critical supply chain requirements, including relevant sanctions laws;
• Disclose certain foreign tax and global business identifiers; and
• Provide detailed information about the imported goods’ supply chain and production methods, such as the manufacturer’s product identifier or key specifications.

Enforcement and Penalties

The order directs CBP, within 90 days, to take steps to bolster enforcement of customs laws and related programs, including participation in the CTPAT Program. These actions should include:

• Enforcing liquidated damages claims against bonds for noncompliance;
• Restricting in-bond utilization;
• Increasing audits; and
• Imposing maximum penalties for brokers who fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to cooperate in a timely manner with requests for information by CBP.

The order also directs CBP to revise mitigation standards to establish a minimum penalty floor of not less than 50 percent of the assessed penalty, establish a minimum liquidated damages floor, and eliminate mitigation for repeat offenders.

Key Implications for Importers

Importers, customs brokers, and foreign manufacturers should prepare for a more rigorous customs compliance environment. In particular, companies will need to evaluate whether they will be designated as a foreign IOR and assess their ability to meet enhanced eligibility, disclosure, and "good standing" requirements. They should also prepare for increased audits and enforcement actions. These enhanced requirements and increased attention to enforcement means that importers should develop and maintain more rigorous customs compliance programs. 

Although the executive order does not immediately change customs regulations, companies should closely monitor CBP developments and prepare to comply with these new requirements. Key deadlines are as follows:

• Within 45 days, CBP must submit legislative recommendations to the president on strengthening customs enforcement;
• Within 90 days, CBP must begin implementing enhanced disclosure requirements, revise enforcement penalty provisions, and require foreign exporters to submit all outstanding documentation;
• Within 180 days, CBP must revise importer eligibility standards, establish enhanced vetting procedures, implement the "good standing" framework, apply foreign IOR restrictions and bonding changes, and update the IOR registry consistent with this order; and
• In one year, CBP must submit an implementation report to the president.

Steptoe's International Trade team is closely monitoring these changing customs compliance requirements. If you need support evaluating what these developments mean for your business, our team is ready to help.