President Donald J. Trump issued a sweeping executive order today aimed at overhauling the nation’s customs system and clamping down on international shippers who evade U.S. trade laws.
The order, titled “Strengthening Customs Enforcement,” targets systemic inefficiencies and loopholes that the administration says allow malign actors to bypass federal oversight. According to the document, current vulnerabilities allow companies to undervalue imports, withhold identity data, and skip out on paying duties.
“Customs enforcement is essential to the national security, foreign policy, and economy of the United States,” the executive order states. “Customs reform is long overdue. Systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade Federal law.”
The most immediate policy shift targets “Importers of Record” (IORs)—the individuals or entities legally responsible for ensuring imported goods comply with local laws and duties. The directive heavily restricts how foreign importers operate. It completely bars foreign IORs from filing “informal entries,” which are typically used for low-value shipments.
The administration noted that foreign companies importing lower-value items face few financial consequences for noncompliance. “The United States faces substantial barriers when seeking to enforce U.S. customs and trade laws against foreign actors like foreign IORs, particularly when assets, operations, and key individuals are located overseas,” the order states, adding that “it is not in the interests of national security or practicable to treat foreign IORs equally to U.S. IORs in the informal entry environment.”
For formal, higher-value entries, foreign importers will no longer be allowed to use continuous bonds to clear customs unless they receive explicit permission from U.S. Customs and Border Protection (CBP). They must also be validated through the Customs Trade Partnership Against Terrorism (CTPAT) program or hire a licensed, validated U.S. customs broker to handle their filings.
To separate legitimate domestic businesses from foreign entities using shell corporations, the order establishes a strict definition for being “located in the United States.” To qualify as a U.S. importer, a business must maintain its principal place of business locally, show a physical presence with significant business activity, and hold sufficient tangible domestic assets.
The directive gives the Department of Homeland Security (DHS) 180 days to implement these regulatory updates. Within that same timeframe, DHS must create a mandatory “good standing” standard for all importers. Shippers tied to the illegal importation of contraband or dangerous narcotics will see their importing privileges revoked.
“IORs that have been found by CBP to have illegally imported fentanyl, nitazene, or other illicit substances or contraband… shall, consistent with applicable law, not be in ‘good standing’ with CBP,” the directive commands, noting that those who lose this status will be barred from importing goods or using brokers to do so on their behalf.
The order also introduces tougher data disclosure rules. Importers must now provide detailed supply chain information, including beneficial ownership disclosures, global business identifiers, and exact manufacturer product specifications like model numbers, sizes, and material compositions. Within 90 days, the U.S. will also require importers to hand over the exact paperwork they submitted to foreign customs agencies before the goods left their home countries.
Enforcement agencies are instructed to apply maximum penalties and strict new limits on legal settlements. Under the new guidelines, the minimum penalty floor for custom violations is set at 50 percent of the assessed penalty amount, and standard mitigations or reductions are eliminated entirely for repeat offenders. Federal investigators and the Attorney General are ordered to prioritize cases involving forced labor, product misclassification, and illegal transshipment.
To keep up with the changes, the Secretary of Homeland Security must submit legislative recommendations to the White House within 45 days and deliver a formal report analyzing the effectiveness of these enforcement reforms in exactly one year.
READ: Behind The Scenes Of The Iran Peace Talks: Trump Presses Netanyahu On Ceasefire Obstacles
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
