Strengthening Customs Enforcement
The order directs the Secretary of Homeland Security to comprehensively overhaul U.S. customs enforcement by tightening importer-of-record requirements, imposing stricter bonding and disclosure rules, and drawing a sharp legal distinction between U.S. and foreign importers.
It is one of the most sweeping customs enforcement directives in recent decades, targeting systemic loopholes that allow undervaluation of goods, duty evasion, forced-labor imports, and fentanyl precursor smuggling — affecting virtually every entity that moves goods across U.S. borders.
What this order does
What it orders
The order directs the Secretary of Homeland Security to overhaul customs enforcement by revising importer-of-record (IOR) eligibility rules, distinguishing U.S. from foreign IORs, and imposing stricter bonding, disclosure, and vetting requirements. It bars foreign IORs from filing low-value informal entries and imposes additional formal entry conditions on them, including trade-partnership certification or use of a certified customs broker. It also establishes a mandatory "good standing" compliance system that can bar IORs from importing, increases minimum penalty floors, expedites disposal of non-compliant goods, and requires annual public enforcement transparency reports.
All changes depend on future rulemaking or regulatory action by the Secretary — none alter existing law immediately. Deadlines run from 45 days (submit legislation recommendations to the President) to one year (deliver an effectiveness report). The order requires implementation consistent with the Administrative Procedure Act, and a severability clause protects remaining provisions if any part is invalidated.
Who it affects
All importers of record — including foreign companies, individuals, and U.S. businesses — filing entries through U.S. Customs and Border Protection. Customs brokers, freight forwarders, custodians of bonded merchandise, and foreign exporters shipping to the United States are also directly reached by new disclosure, certification, and vetting requirements.
Why it matters
Foreign importers — especially those shipping low-value goods — will face higher bonding costs, new disclosure burdens, and potential loss of access to simplified informal entry. U.S. businesses that compete with foreign importers may benefit from a more level enforcement playing field. Customs brokers face significantly higher penalties for noncompliance.
What must happen and when
How the order is supposed to work
The Secretary of Homeland Security is the sole implementing officer, acting through U.S. Customs and Border Protection. The order cascades through five deadline tiers (promptly, 45, 90, 180 days, and 1 year), with each rulemaking or guidance package building on prior steps. Legislative recommendations feed into a parallel congressional track. Enforcement teeth come from minimum penalty floors, mandatory bond liquidation for noncompliance, and a "good standing" registry that can completely bar non-compliant importers. The Attorney General shares responsibility for forced-labor and customs-fraud enforcement. A one-year effectiveness report closes the loop to the President.
Actions and deadlines
- Issue regulations prohibiting foreign IORs from filing informal entry for low-value imports
- Issue regulations imposing additional formal entry requirements on foreign IORs, including CTPAT certification
- Submit legislative recommendations to strengthen customs enforcement to the President
- Establish requirement mandating submission of foreign exporter documentation provided to foreign customs authorities
- Revise mitigation standards, including establishing minimum penalty floors and eliminating mitigation for repeat offenders
- Take actions to expedite seizure and disposal of non-compliant imports, including authorizing third-party disposal
- Enhance customs transparency, including periodic review of confidentiality requests and publishing annual enforcement reports
- Revise IOR eligibility regulations to require minimum domestic assets, increased bonding, and expanded data disclosures
- Require all IORs to maintain "good standing" with CBP, barring non-compliant IORs from importing
- Update IOR registry by removing inactive IORs and creating risk-based compliance tiers
- Establish enhanced and recurrent vetting procedures for all entities involved in import activities
- Establish heightened import disclosure and certification requirements, including supply chain and production method data
- Prioritize enforcement of forced-labor, misclassification, undervaluation, and illegal transshipment violations
- Submit effectiveness report on the order's measures to the President through the U.S. Trade Representative