On June 3, 2026, President Trump signed an Executive Order titled Strengthening Customs Enforcement, directing the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to undertake a comprehensive overhaul of the rules governing importation into the United States. The Order signals a significant shift in federal enforcement priorities and will reshape the compliance landscape for any business engaged in cross-border trade. Importers should begin assessing their exposure now, as the operational and legal implications are substantial.
Central to the Order are new requirements imposed on importers of record (IORs), the parties legally responsible for ensuring that imported merchandise complies with U.S. law. The Order specifically restricts foreign entities from serving as IORs, a change that may require many supply chains to be restructured. Companies that have historically relied on foreign affiliates, suppliers, or third-party logistics providers to act as IORs will need to identify qualifying domestic entities and evaluate the contractual, tax, and operational consequences of any transition.
The Order also substantially raises the stakes of non-compliance. It establishes a minimum penalty floor for customs violations and enhances CBP's seizure authorities, meaning that even relatively modest infractions could trigger meaningful financial consequences and the loss of goods. For importers, this elevates the importance of proactive compliance reviews, robust internal controls, accurate classification and valuation practices, and thorough recordkeeping. Companies should also revisit their broker relationships, training programs, and audit procedures to confirm that current practices can withstand heightened scrutiny.
Implementation is expected to move quickly. The Order contemplates a legislative proposal within 45 days and directs that most regulatory changes be issued within 180 days. Given this accelerated timeline, importers should not wait for final rules before acting. Reviewing IOR arrangements, mapping potential penalty exposure, and engaging with counsel and customs brokers in the near term will help mitigate disruption when the new requirements take effect.
This update is provided for general informational purposes only and does not constitute legal advice. Importers facing specific questions about their operations, contractual arrangements, or potential exposure under the Executive Order should consult qualified counsel for advice tailored to their particular circumstances.