Executive Order to Strengthen Customs Enforcement

On June 3, 2026, the White House issued President Trump’s executive order titled “Strengthening Customs Enforcement” (“the Order”), calling for comprehensive reform, agency actions, and legislation. The Order directs the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to impose tighter requirements on importers, heighten focus on foreign importers, enhance overall importer oversight and accountability, increase enforcement and apply greater penalties for non-compliance.

While the directives within the Order will require further development or future rulemaking before becoming effective, the Order clearly signals forthcoming requirements for importers and the continuation of an increasingly rigorous enforcement environment.

Key Directives

The Order directs DHS and CBP to develop policies, procedures, and regulations addressing several areas, including:

1. Tightened Importer of Record (IOR) Requirements

The Order calls for actions to ensure that IORs are correctly identified and held accountable for duties owed. More specifically, the Order calls for strengthened IOR eligibility, disclosure and certification policies, including requirements that IORs:

• Maintain a minimum level of tangible domestic assets, a minimum level of bond coverage, or both
• Provide detailed information about the IOR, including anticipated import volumes, ownership and beneficial ownership information, business affiliations, domestic assets, and any other data that CBP deems necessary
• Provide detailed information about the IOR’s supply chains, manufacturers, production methods, among other information about imported goods
• Disclose certain foreign tax and global business identifiers
• Certify compliance with critical supply chain requirements
• Establish and maintain “good standing” with CBP including compliance with U.S. customs and trade laws and payment of required customs liabilities

Importers that fail to meet these and other forthcoming requirements may be restricted from importing into the United States.

2. Heightened Scrutiny and Restrictions on Foreign IORs

The Order calls out concerns that foreign IORs can more easily evade duties and customs obligations because of substantial barriers when the U.S. seeks enforcement overseas. The Order intentionally distinguishes a “U.S. IOR” from a “foreign IOR” and calls for heightened restrictions on foreign IORs, including:

• Prohibiting a foreign IOR from filing an informal entry under 19 U.S.C §1498
• Limiting a foreign IOR’s use of continuous bonds unless CBP determines that revenue to the U.S. is protected and compliance is assured
• Requiring foreign IORs to be validated in CBP’s Customs Trade Partnership Against Terrorism (CTPAT) where eligible or use a CTPAT-validated and licensed customs broker to file entries with CBP

These changes may have significant impacts on any importer that uses a foreign entity as the importer of record.

3. Expanded Vetting, Registration, and Risk Ranking

To further enhance importer oversight, the Order calls for additional actions including:

• Enhanced vetting procedures covering foreign IORs, affiliates of IORs, customs brokers, custodians of bonded merchandise, and freight forwarders
• Updating the IOR registry by removing inactive IORs and confirming that active IORs are compliant with all applicable regulations and disclosures
• Creating risk-based tiers for IORs based on compliance history, enforcement actions, audit results, among other factors
• Enforcing the forthcoming “good standing” requirements

4. Increased Enforcement and Penalties

The Order calls for increased enforcement and any action deemed necessary to combat:

• Customs fraud
• Duty evasion
• Illegal transshipment
• Misclassification
• Undervaluation
• False country-of-origin
• Forced labor imports
• Importation of unlawful and dangerous goods

Additionally, the Order directs DHS and CBP to establish a 50% minimum penalty floor limiting CBP’s discretion to reduce the assessed penalties on importers who violate customs laws. The Order also calls for a minimum liquidated damages floor and the elimination of mitigation for repeat offenders.

Practical Steps Importers Can Take Now

The Order itself does not establish immediate requirements for importers, but it does clearly signal the types of new requirements that are forthcoming. Most of the directives within the Order are within a 45-, 90-, or 180-day timeframe.

Proactive steps that importers can take now include:

• Determining whether the importer of record would be considered a “U.S. IOR” or a “foreign IOR” defined under the Order
• Reviewing bond coverage and measure domestic assets in anticipation of forthcoming minimum requirements
• Validating and preparing to demonstrate business and beneficial ownership structure, business affiliates, related parties, business registration among related information that CBP may request.
• Validating and preparing to demonstrate supply chain information including foreign suppliers, manufacturers, production methods, among other information pertaining to imported goods
• Reviewing vetting and due diligence of customs brokers used
• Conducting a compliance risk assessment including exposure to potential risk areas such as classification, valuation, country-of-origin, transshipment, among other scrutinized activities

Citrin Cooperman’s Financial Investigations and Regulatory Enforcement Practice works with importers navigating customs compliance, trade enforcement exposure, and regulatory risk. As the requirements outlined in this Order take shape, having the right guidance in place now can make a significant difference. To learn more, contact Kevin Tanaka or Atul Chandra.