Executive summary

On 3 June 2026, United States (US) President Trump issued an Executive Order titled "Strengthening Customs Enforcement." The order builds upon the administration's policy concerns regarding customs enforcement, particularly in areas related to customs valuation, misclassification and duty evasion. It directs the Department of Homeland Security (DHS) and US Customs and Border Protection (CBP) to implement reforms that improve transparency, enhance compliance and ensure full collection of duties.

Enhanced requirements for foreign importers

Foreign Importers of Record (IORs) will face significantly higher compliance and financial requirements, including having to maintain US-based assets, needing higher bond coverage, and having to provide detailed ownership and operational disclosures. Foreign IORs will be prohibited from using informal entry procedures for low-value shipments. For formal entries, foreign IORs will face stricter bonding rules, including potential restrictions on the use of continuous bonds, and may need Customs-Trade Partnership Against Terrorism (C-TPAT) validation or to work through certified brokers. They must also maintain "good standing" with CBP, with any compliance violations potentially barring them entirely from importing into the United States.

Import disclosure and certification requirements

The Secretary of Homeland Security (the Secretary) is directed to establish heightened import disclosure and certification requirements consistent with the policy objectives of the order. These requirements are expected to include certifications of compliance with legal obligations related to sanctions, smuggling and other supply-chain controls, as identified by CBP in consultation with relevant agencies.

In addition, importers will be required to provide expanded information regarding imported goods and their supply chains, including product identifiers, key specifications and other data necessary to support CBP's risk assessment and enforcement activities. The requirements further contemplate disclosures of foreign tax identifiers, global business identifiers and other information relating to the importer and its operations.

Within 90 days, the Secretary is also directed to "take steps to establish a requirement mandating the submission of any documentation or information" that foreign exporters are required to provide to their domestic customs authorities before exporting to the United States.

Enforcement and penalties

The executive order directs CBP to increase enforcement activity across risk areas, including undervaluation, misclassification, illegal transshipment and imports involving forced labor. The order also expands enforcement actions such as audits, liquidated damages claims and penalties and increases scrutiny of customs brokers and other intermediaries.

Within 90 days, the Secretary must revise its mitigation standards to further strengthen penalty enforcement. The order provides that "revisions shall include establishing a minimum penalty floor of not less than 50% of the assessed penalty, absent exceptional circumstances that materially impact national security; establishing a minimum liquidated damages floor; and eliminating mitigation for repeat offenders."

Streamlined seizure and disposal

The Secretary must enhance seizure and disposal processes, including by reducing burdens for abandonment, increasing bonding for high-risk shipments and enabling third-party disposal.

What this means for businesses

These measures will increase compliance obligations and enforcement risk. Companies could face higher costs, stricter importer requirements and expanded data reporting. Businesses should strengthen controls, improve documentation and reassess supply-chain practices.

Key timelines

• Within 45 days: DHS is required to submit legislative recommendations to further strengthen customs enforcement, which may result in additional statutory changes in the future. Additionally, DHS is required to provide annual implementation reports assessing the effectiveness of the measures submitted, which may inform further policy adjustments or enforcement actions.
• Within 90 days: The Secretary is directed to introduce heightened import disclosure and certification requirements, revise penalty mitigation standards, and implement measures to streamline the seizure and disposal of noncompliant goods.
• Within 180 days: The Secretary must implement significant regulatory changes affecting importer eligibility, including revised bonding requirements, expanded data and disclosure obligations, updated importer of record registry procedures and enhanced vetting processes for importers, brokers and related parties.

Actions to consider

Actions for businesses to consider, depending on their specific situations, include the following:

• Review importer of record structures, including legal-entity setup and beneficial ownership, to ensure alignment with expected eligibility requirements, bonding thresholds and "good standing" criteria, particularly if foreign entities or complex ownership arrangements are involved.
• Assess whether current bonding levels, financial guarantees or US-based assets would meet anticipated minimum requirements, and plan for potential increases in bonding costs or changes to customs entry processes.
• Evaluate data collection, systems and reporting capabilities to ensure the ability to capture and provide expanded disclosures, including detailed supply-chain information, product specifications and upstream export documentation required from foreign suppliers.
• Conduct internal reviews of customs compliance processes, including classification, valuation, country-of-origin determinations and forced-labor due diligence, to identify gaps and strengthen controls in advance of increased audit activity.
• Enhance documentation and audit readiness to support compliance with heightened certification requirements and to mitigate exposure to increased penalties, particularly in light of reduced mitigation opportunities and higher minimum penalty thresholds.
• Reassess relationships with customs brokers, freight forwarders and other intermediaries to ensure they perform appropriate due diligence and are prepared to comply with stricter enforcement expectations, including potential liability for noncompliance.
• Monitor forthcoming CBP rulemaking, guidance and implementation timelines, including changes related to importer vetting, disclosure requirements and enforcement practices, and engage where appropriate to anticipate and prepare for compliance obligations.