Key Points

• On June 3, 2026, President Trump signed an EO entitled “Strengthening Customs Enforcement” and the White House issued a related Fact Sheet. This Order aims to prevent the importation of unlawful and dangerous goods, modify compliance requirements for both domestic and foreign IORs, and enhance enforcement mechanisms for violations of customs laws.
• President Trump emphasized that “[c]ustoms reform is long overdue” and that “[c]ustoms enforcement is essential to the national security, foreign policy, and economy of the United States.” Given this nexus to national security, foreign policy and the health of the U.S. economy, it is possible that regulations, guidance and policy may be changed quickly, i.e., without following the typical notice and comment rulemaking procedures.
• The Order follows other important customs enforcement measures at CBP and the Department of Justice and calls for robust customs enforcement and reform. It calls for both civil and criminal enforcement of the customs laws, tying in with the Trump administration’s prior actions to expand its focus on the intersection between civil and criminal trade law (such as the establishment of the cross-agency DHS and Department of Justice Trade Fraud Task Force).
• President Trump notes that systemic inefficiencies, loopholes and insufficient enforcement have created opportunities for malign actors to evade federal laws, undervalue imports, avoid the payment of duties and withhold critical information about IORs.
• President Trump also directs that, within 90 days of the Order, all CBP mitigation guidelines shall be modified to establish a minimum penalty floor of no less than 50% of the assessed penalty and a policy of no mitigation for “repeat offenders.”
• The Order particularly focuses on restrictions on foreign and U.S. IORs, customs enforcement and penalties, disclosure and certification requirements and streamlined procedures for seized and abandoned property.

Background and Key Provisions

On June 3, 2026, President Trump signed an Executive Order (EO) entitled “Strengthening Customs Enforcement” and the White House issued a related Fact Sheet. The objective of this Order is to “prevent[] the importation of unlawful and dangerous goods; ensure[] importers of record (IORs) are correctly identified and accountable for duties owed; and guarantee[] compliance with numerous Federal laws, including laws governing forced labor, rules of origin, origin marking, intellectual property, revenue collection, and product safety.” This Order directs the Secretary of DHS to revise regulations, guidance and policies to make, among other things, changes in the following key areas:

• Regarding IORs, especially foreign IORs:
  • Prohibit foreign IORs from filing informal entries.
  • Require that foreign IORs: (1) may not rely on a continuous bond except as permitted by Customs and Border Protection (CBP); and (2) must be validated in CBP’s Customs Trade Partnership Against Terrorism (CTPAT) program or use a CTPAT-validated and licensed customs broker.
  • Require that all IORs must maintain “good standing.” “Good standing” will be predicated upon the payment of all required customs liabilities and compliance with admissibility requirements. The failure to maintain “good standing” can result in an import ban or a ban on “activities directly related to the importation of goods” including “designating a customs broker.”
• Require that IORs maintain sufficient assets, a bond or both for formal and informal entries. Related to this requirement, this Order directs the Secretary of DHS to:
  • Require that IORs maintain a minimum level of tangible assets in the United States, bonding or both.
  • Increase the minimum required bond coverage for IORs.
• Require that IORs provide additional data to CBP such as anticipated import volumes, business organization/ownership/affiliation information, domestic asset disclosures and “any other data that CBP deems necessary”.
• Update the IOR registry, to include removing inactive IORs, confirming active IOR compliance and creating risk-based tiers for IORs.
• Establish enhanced vetting procedures for all individuals and entities seeking to conduct activities directly related to the importation of goods (e.g., foreign IORs, affiliates of IORs, custodians of bonded merchandise, customs brokers and freight forwarders).
• Regarding heightened import disclosure and certification requirements:
  • Require that CBP-regulated parties certify compliance with the Countering America’s Adversaries Through Sanctions Act “and others to be determined by CBP”.
  • Require disclosure of foreign tax and global business identifiers.
  • Require detailed information about supply chain and production methods.
  • Enforce “all applicable criminal fines and civil penalties in the event of noncompliance with these heightened requirements”.
  • Mandate the submission of any documentation or information that the foreign exporter was required to submit to the foreign customs administration.
• Regarding enforcement actions and penalties:
  • Bolster the enforcement of the customs laws, regulations and other mandates, to the maximum extent permitted by law. In addition to the above-referenced enforcement of criminal fines and civil penalties for noncompliance with import disclosure and certification requirements, this Order particularly requests the following actions:
    • Enforcing liquidated damages claims against bonds for noncompliance.
    • Restricting in-bond utilization.
    • Increasing audits.
    • Imposing maximum penalties for brokers who fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to cooperate in a timely manner with requests for information by CBP.
  • Prioritize enforcement related to the import of goods made with forced labor, as well as issues related to misclassification, undervaluation and illegal transshipment, including investigations conducted pursuant to the Enforce and Protect Act.
  • Establish a minimum penalty floor of not less than 50% of the assessed penalty, absent exceptional circumstances that materially impact national security, and establish a minimum liquidated damages floor.
  • Eliminate mitigation for repeat offenders.
• Regarding seizure and disposal:
  • Expedite and enhance the seizure and disposal of non-compliant imports.
  • Eliminate regulatory burdens to voluntary abandonment.
  • Increase bond requirements for high-risk shipments.
  • Authorize third-party disposal.
  • Allow summary sale of seized merchandise.
• Regarding transparency:
  • Review confidentiality requests.
  • Publish enforcement transparency reports.
• Regarding legislation:
  • Propose legislation to strengthen customs enforcement. The Order requests that the Secretary of the Department of Homeland Security (DHS) consult with other agencies—this could result in changes to or increased enforcement of the laws of CBP’s Partner Government Agencies, i.e., the laws that CBP enforces beyond just the customs laws.

What IORs and other CBP-Regulated Parties Need To Know

CBP-regulated parties in general should be prepared for sweeping increases to customs enforcement and increased penalties—both civil and criminal—for noncompliance. Given this increased enforcement, it is important to confirm compliance and, as needed, consult trade counsel with experience in the civil and criminal enforcement of customs law.

IORs should begin strengthening their customs compliance programs, especially regarding classification, valuation, supply chain due diligence and documentary requirements. IORs should expect changes in the near future to the importation process, including:

• Foreign IORs will be prohibited from filing informal entries, and will be subjected to heightened requirements for formal entries.
• Foreign IOR e-commerce providers may need to make major changes to their operations or business models.
• All IORs will be required to maintain a certain level of assets in the United States, adequate bonds or both.
• All IORs should be prepared to increase their bond coverage and establish a certain level of U.S. assets.
• All IORs will be subjected to heightened disclosure and compliance requirements. Failure to comply with these requirements could result in increased penalties, both civil and criminal. Particular enforcement emphasis will be placed on foreign IORs that establish shell companies, sham transactions or artificial corporate structures to qualify as a U.S. IOR.

Brokers should strengthen the due diligence they perform when vetting clients to make sure the clients stay compliant. Brokers should also streamline their internal processes to confirm timely responses to CBP inquiries.

Contact Information

Akin has extensive experience advising on compliance, enforcement and remediation activities related to IOR requirements, bond considerations, brokerage requirements, forced labor and related supply chain concerns, and the intersection of civil and criminal enforcement of the customs laws of the United States. If you have questions about this alert, would like assistance strengthening your compliance programs and/or would like to be prepared in advance of these forthcoming changes, please contact our team.