White House Overhauls Customs Rules to Boost Importer Accountability

White House Orders Customs Overhaul to Hold Importers of Record Accountable for Forced Labor

President Trump signed an executive order on June 3, 2026, that significantly reshapes U.S. customs rules. This directive aims to increase accountability for importers of record and strengthen enforcement against unlawful imports. The changes are intended to address systemic issues within current customs processes, including loopholes, insufficient enforcement, and outdated procedures that bad actors exploit.

The executive order, titled “Strengthening Customs Enforcement,” mandates a broad rewrite of regulations governing importers. The Department of Homeland Security (DHS) is tasked with revising importer eligibility rules, establishing new filing limits for foreign importers, and submitting legislative recommendations. These actions are framed as essential for national security, foreign policy, and economic stability.

Revised Importer Eligibility Rules

A central component of the executive order involves tightening the requirements for importers of record, the parties legally responsible for customs entries and duties. Within 180 days, DHS must update regulations to ensure that an importer of record maintains minimum tangible domestic assets, bonding, or both, as determined by U.S. Customs and Border Protection (CBP). This aims to create a more substantial domestic connection and financial responsibility for those importing goods.

CBP will also require that an importer of record be formally designated and reported for all formal and informal entries. This includes new data demands, such as anticipated import volumes, the year the business was organized, disclosures about ownership and beneficial ownership, business affiliations, and domestic asset information. These measures are designed to provide greater transparency and traceability in the import process.

Sharper Limits for Foreign Importers

The executive order imposes stricter conditions on foreign importers of record. DHS is directed to change rules so that foreign entities cannot file informal entries for low-value articles. This is because foreign importers often handle high volumes of inexpensive goods, may have less familiarity with U.S. customs law, and face lower penalties when those penalties are tied to shipment value.

Formal entries by foreign importers will also face new requirements. A foreign importer may not use a continuous bond to meet entry requirements unless CBP approves it after confirming that revenue will be fully protected and compliance is assured. Additionally, foreign importers of record might need to obtain validation in CBP’s Customs Trade Partnership Against Terrorism (CTPAT) program or use a CTPAT-validated and licensed customs broker for filing entries. These steps are intended to make it harder for foreign actors to evade customs debts.

Establishing a “Good Standing” Standard

Within 180 days, DHS must create a “good standing” standard for all importers of record. CBP will define this standard based on factors such as compliance history, payment of customs liabilities, and other relevant importer and affiliate information. The order specifically notes that importers found to have illegally imported substances like fentanyl or other illicit contraband will not be considered in “good standing” with CBP.

Importers failing to meet the “good standing” standard will be barred from accessing the U.S. market. They will be prohibited from importing goods or conducting activities directly related to importation, including appointing a customs broker. This measure aims to remove non-compliant actors from the import landscape.

Enhanced Vetting and Disclosure Requirements

CBP is also required to update its importer registry within 180 days. This process will involve removing inactive importers, confirming active ones meet disclosure and regulatory rules, and creating risk-based tiers based on compliance history and enforcement actions. Furthermore, DHS must establish enhanced vetting, including recurrent vetting, for all individuals and entities involved in import activities. This includes foreign importers, affiliates, customs brokers, custodians of bonded merchandise, and freight forwarders.

Disclosure rules will expand beyond importer identity. DHS will implement heightened import disclosure and certification requirements, including those related to supply chain laws. Importers will need to disclose certain foreign tax and global business identifiers and provide more detailed production information about goods entering the country, such as manufacturer product identifiers and specifications like composition or grade. Criminal fines and civil penalties will be enforced for violations of these disclosure rules.

Prioritizing Enforcement and Penalty Relief

The executive order instructs the Secretary of Homeland Security and the Attorney General to prioritize federal enforcement efforts concerning goods produced by forced labor, as well as imports involving misclassification, undervaluation, and illegal transshipment. A separate requirement mandates that within 90 days, DHS establish a rule requiring the submission of any documentation or information a foreign exporter had to file with its own customs administration before exporting goods to the United States.

Enforcement measures will be bolstered across the board. This includes enforcing liquidated damages claims against bonds, restricting in-bond utilization, increasing audits, and imposing maximum penalties on brokers who fail to conduct due diligence or repeatedly represent noncompliant clients. Penalty relief will also be narrowed, with DHS revising mitigation standards to set a minimum penalty floor of 50 percent of the assessed penalty, absent exceptional circumstances affecting national security. Mitigation for repeat offenders will be eliminated.

Expedited Seizure and Disposal

Rules for seizure and disposal of non-compliant imports will also be accelerated. Within 90 days, DHS must take steps to expedite these processes by reducing regulatory burdens for voluntary abandonment, increasing bond requirements for high-risk shipments, authorizing third-party disposal, and using existing legal authority for seizure and disposal. This aims to remove non-compliant goods from the supply chain more efficiently.

Transparency and Reporting

Transparency requirements are also part of the overhaul. Within 90 days, DHS must establish standards for periodic review and expiration of confidentiality requests, where appropriate, and produce annual enforcement transparency reports. The order also clarifies definitions for U.S. importers of record and foreign importers of record, emphasizing that an entity cannot qualify as located in the United States solely through paper structure. Future guidance will focus on preventing shell companies and ensuring entities have a principal place of business, physical presence, and sufficient tangible assets in the U.S.

Finally, the order mandates a formal review of its effectiveness. Within one year, the Homeland Security secretary must submit a report to the president measuring the order’s impact. This comprehensive approach aims to create a more robust and accountable customs enforcement system.

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