U.S. Executive Order Signals Stronger Customs Enforcement and New Importer Requirements

On June 3, 2026, The White House issued an Executive Order titled “Strengthening Customs Enforcement”. The order directs the Department of Homeland Security and U.S. Customs and Border Protection to strengthen customs enforcement, increase importer accountability, expand disclosure requirements, and apply stronger penalties for non-compliance.  The White House also provided this Fact Sheet.

While many of the requirements will still need to be implemented through CBP regulations, policies, or guidance, importers should begin preparing now. The order points to a more rigorous enforcement environment, especially for Importers of Record, foreign IORs, low-value shipments, forced labor compliance, valuation, classification, origin, transshipment, and broker due diligence.

Key Areas of Focus

1. Importer of Record eligibility and vetting

The Executive Order directs DHS and CBP to revise IOR eligibility requirements within 180 days. These revisions are expected to include increased bond coverage, minimum levels of tangible domestic assets or bonding, and additional IOR identification data. Importers may also be required to provide information such as anticipated import volumes, year organized, ownership and beneficial ownership details, business affiliations, and domestic asset disclosures.

CBP is also directed to require IORs to remain in “good standing.” Importers that are not in good standing may be restricted from importing into the United States or conducting activities directly related to importation, including designating a customs broker to act on their behalf.

2. New restrictions for foreign Importers of Record

The order places particular emphasis on foreign IORs. DHS is directed to prohibit foreign IORs from filing informal entries under 19 U.S.C. 1498. For formal entries, foreign IORs may face additional requirements, including limits on the use of continuous bonds unless CBP determines revenue is protected and compliance is assured. Foreign IORs may also be required to be CTPAT-validated, where eligible, or use a CTPAT-validated and licensed customs broker to file entries with CBP.

This may have a significant impact on importers using foreign entities as the IOR, particularly for low-value shipments and e-commerce-style import models.

3. Expanded import disclosure and certification requirements

The order directs DHS and CBP to establish heightened disclosure and certification requirements. These may include supply chain compliance certifications, foreign tax and business identifiers, and more detailed product and production information, such as manufacturer product identifiers, model or style numbers, composition, grade, size, or other key specifications.

Within 90 days, DHS is also directed to establish a requirement for importers to submit documentation or information that the foreign exporter was required to provide to the foreign customs administration before export to the United States.

4. Increased enforcement, audits, and penalties

The order calls for stronger enforcement actions, including increased audits, enforcement of liquidated damages claims against bonds, restrictions on in-bond movements, and maximum penalties for brokers that fail to conduct due diligence, repeatedly represent non-compliant clients, or do not respond timely to CBP requests.

The order also directs DHS and the Attorney General to prioritize enforcement related to forced labor, misclassification, undervaluation, and illegal transshipment, including investigations under the Enforce and Protect Act.

Within 90 days, DHS is directed to revise mitigation standards, including establishing a minimum penalty floor of at least 50% of the assessed penalty, absent exceptional circumstances, setting a minimum liquidated damages floor, and eliminating mitigation for repeat offenders.

What Importers Should Do Now

We recommend importers begin reviewing their customs compliance programs and IOR structure before new requirements are implemented. In particular, importers should:

• Confirm whether their current IOR structure may be considered U.S. or foreign under the Executive Order’s definitions.
• Review bond coverage and prepare for the possibility of increased bond requirements.
• Validate business registration, ownership, beneficial ownership, and domestic asset information.
• Review supply chain documentation for forced labor, origin, valuation, classification, and transshipment risk.
• Ensure product data is complete, consistent, and available at the part, SKU, model, or style level.
• Confirm that foreign suppliers can provide export documentation and production-related information when requested.
• Respond promptly and completely to broker or CBP requests for information.
• Review internal controls for repeat compliance issues, as mitigation may become more limited.

TIMELINE OF EVENTS REQUIRED BY THIS EXECUTIVE ORDER

Days from Order and Required Action

45 days

• Submit recommendations for legislation to strengthen customs enforcement.

90 days

• Require submission of documentation or information that the foreign exporter provided to foreign customs authorities before export to the United States.
• Revise mitigation standards to establish a minimum penalty floor of at least 50 percent, a minimum liquidated damages floor, and no mitigation for repeat offenders.
• Take actions to expedite and enhance seizure and disposal of non-compliant imports, including easing voluntary abandonment, increasing bond requirements for high-risk shipments, and authorizing third-party disposal.
• Enhance transparency through periodic review and expiration of confidentiality requests, as appropriate, and publication of annual enforcement transparency reports.

180 days

• Revise importer eligibility regulations, guidance, and policies to require minimum domestic assets, bonding, or both; increased bond coverage; IOR designation for formal and informal entries; and additional IOR data disclosures.
• Require all IORs to maintain good standing with CBP.
• Update the IOR registry by removing inactive IORs, confirming compliance and disclosures for active IORs, and creating risk-based tiers.
• Establish enhanced and recurrent vetting procedures for IORs, affiliates, customs brokers, custodians of bonded merchandise, and freight forwarders.

1 year

• Submit a report to the President on the effectiveness of the matters set forth in the order.

BorderBuddy is monitoring this development and will continue to review CBP guidance as it becomes available. We encourage clients to begin preparing now, particularly if they use a foreign IOR, rely on informal entry processes, have high-volume low-value shipments, or import goods in categories with heightened enforcement risk.

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