Executive Order Strengthens U.S. Customs Enforcement

On June 3, 2026, President Donald J. Trump signed Executive Order 14411, directing federal agencies to strengthen U.S. customs enforcement. The order aims to improve national security, protect domestic businesses, increase duty collection, and reduce customs fraud by addressing issues such as undervaluation, misclassification, illegal transshipment, forced labor, and the use of shell companies to evade U.S. trade laws.

New Requirements for Importers of Record (IORs)

Within 180 days, the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) must revise importer regulations. Proposed changes include requiring Importers of Record (IORs) to maintain minimum domestic assets or bond coverage, provide additional business and ownership information, disclose anticipated import volumes, and meet new financial responsibility requirements. CBP will also update the IOR registry, remove inactive importers, establish compliance based risk tiers, and introduce enhanced vetting procedures for importers, customs brokers, freight forwarders, and other parties involved in importing goods.

Changes for Foreign Importers

The executive order places additional restrictions on foreign Importers of Record (IORs). Foreign IORs will no longer be permitted to file informal entries and must instead use the formal entry process. They may also be prohibited from relying on continuous bonds unless specifically approved by CBP and, when eligible, must either become validated members of the Customs Trade Partnership Against Terrorism (CTPAT) or work through a CTPAT validated customs broker. The order states these measures are intended to improve enforcement against overseas entities that are more difficult to investigate and collect duties from.

Increased Disclosure and Enforcement

The order also directs CBP to require more detailed import information, including supply chain data, manufacturer product identifiers, foreign tax information, and certifications demonstrating compliance with applicable U.S. trade laws. Within 90 days, importers may also be required to submit export documentation previously filed with foreign customs authorities. Failure to comply could result in civil or criminal penalties.

CBP is also instructed to increase audits, enforce higher penalties for customs violations, strengthen enforcement against forced labor, misclassification, undervaluation, and illegal transshipment, and reduce penalty mitigation for repeat offenders. The order also calls for faster seizure and disposal of non-compliant imports, increased transparency through annual enforcement reports, and recommendations for future legislation to further strengthen customs enforcement.

Review

Overall, Executive Order 14411 represents a broad effort to modernize U.S. customs enforcement by increasing importer accountability, strengthening oversight of foreign importers, expanding disclosure requirements, and giving CBP additional tools to combat customs fraud and improve compliance with U.S. trade laws. Many of the order's provisions require DHS and CBP to issue updated regulations and guidance before the new requirements take effect.

Learn More