This Presidential Action mandates comprehensive reforms to U.S. customs enforcement, asserting that stronger measures are crucial for national security, foreign policy, and the economy.
The order directs the Secretary of Homeland Security to revise regulations within 180 days to enforce higher accountability standards for Importers of Record (IORs), including requiring tangible domestic assets or increased bonding, mandating detailed disclosure of ownership and supply chain data, and imposing stricter rules for foreign IORs, such as prohibiting their use of informal entry.
Furthermore, the action targets enhanced enforcement penalties for noncompliance, streamlined disposal of illegal imports, and established vetting procedures to ensure all parties involved in importing maintain 'good standing' with Customs and Border Protection (CBP).
Arguments For
Enhanced National Security and Economic Protection: Stricter enforcement prevents the importation of dangerous goods, combats illicit activities like fentanyl precursor smuggling, and protects domestic businesses from unfair competition caused by duty evasion and undervaluation.
Improved Importer of Record (IOR) Accountability: Requiring IORs, especially foreign ones, to maintain tangible domestic assets, increase bond coverage, and disclose ownership information ensures they have sufficient financial standing and are legally accountable for compliance with U.S. laws.
Leveling the Playing Field: Imposing stricter requirements on foreign IORs, including prohibiting them from using informal entry processes and requiring CTPAT validation for formal entry, addresses compliance barriers faced by U.S. authorities when enforcing laws against overseas actors, thus creating equitable treatment based on individualized circumstances.
Increased Transparency and Supply Chain Integrity: Mandating heightened disclosure requirements, including supply chain details, foreign tax identifiers, and documentation submitted to foreign customs administrations, allows for better tracking of goods and certification of compliance with laws like those concerning forced labor (e.g., CAATSA).
Arguments Against
Increased Trade Friction and Supply Chain Delays: Heightened disclosure requirements, vetting procedures, and mandatory CTPAT validation for foreign IORs could introduce new administrative burdens, potentially slowing the flow of legitimate trade and increasing transactional costs for importers.
Potential Economic Disadvantage and Increased Costs: Treating foreign IORs differently by restricting informal entry and requiring specific bonding mechanisms may increase costs for compliant foreign entities, which could ultimately be passed on to U.S. consumers or disadvantage U.S. businesses relying on foreign sourcing.
Jurisdictional and Enforcement Challenges: While the action attempts to mitigate enforcement barriers against foreign actors, relying heavily on asset disclosure and CTPAT validation may prove difficult to enforce consistently against sophisticated entities attempting to circumvent definitions of 'U.S. IOR' through shell companies.
Impact on Low-Value Imports: Prohibiting foreign IORs from filing informal entry for low-value articles could disrupt established low-volume business models for small international shippers, even if the stated intent is to increase accountability for high-volume non-compliant foreign actors.
By the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby determine and order:
This opening clause establishes the legal basis for the subsequent directives, claiming Presidential authority derived from the Constitution and existing U.S. laws to issue the following order.
Section 1. Purpose. Customs enforcement is essential to the national security, foreign policy, and economy of the United States. Effective customs enforcement prevents the importation of unlawful and dangerous goods; ensures importers of record (IORs) are correctly identified and accountable for duties owed; and guarantees compliance with numerous Federal laws, including laws governing forced labor, rules of origin, origin marking, intellectual property, revenue collection, and product safety.
Customs reform is long overdue. Systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade Federal law. Examples of noncompliance include undervaluing imports, withholding critical information about IORs and the goods being imported, and avoiding payment of duties through various arrangements and schemes. These actions threaten national security, undermine foreign relations, disadvantage domestic businesses, and harm Americans.
The United States must strengthen its customs enforcement through comprehensive reform, including through agency action and legislation. Such reform should focus on protecting national security, promoting lawful trade, ensuring the timely collection of duties, modernizing systems and processes, bolstering compliance mechanisms, increasing transparency, and protecting Americans and the domestic economy.
The first section outlines the comprehensive rationale for the executive action.
It states that effective customs enforcement is vital for national security and the economy because it stops illegal goods, ensures Importers of Record (IORs) pay duties, and enforces various federal laws, including those related to forced labor and intellectual property.
The document argues that current customs processes contain loopholes that allow bad actors to evade laws through undervaluation or withholding information, thereby harming national interests.
The intended resolution is comprehensive reform through both agency action and legislative proposals, focusing on modernization, compliance, and transparency.
Sec. 2. Importers of Record. (a) Within 180 days of the date of this order, the Secretary of Homeland Security (Secretary) shall, pursuant to 19 U.S.C. 66, 1484, 1498, 1623, 1624, and 4320, and any other applicable law, take steps to revise importer eligibility regulations, guidance, and policies consistent with the policy of this order. These revisions shall include:
(i) requiring that an IOR maintain at all times a minimum level of tangible domestic assets, bonding, or both, as determined by U.S. Customs and Border Protection (CBP) to be necessary to ensure compliance with U.S. customs and trade laws, and increasing the minimum required bond coverage for an IOR;
(ii) requiring that an IOR be designated and reported to CBP, and that a bond, or sufficient tangible domestic assets, or both, be required, for all formal entries under 19 U.S.C. 1484 and informal entries under regulations promulgated pursuant to 19 U.S.C. 1498; and
(iii) requiring that an IOR provide to CBP additional data and identification information, including anticipated import volumes, year organized, ownership and beneficial ownership disclosures, business affiliation disclosures, and domestic asset disclosures, and any other data that CBP deems necessary.
(b)(i) Pursuant to 19 U.S.C. 66, 1484, 1498, 1623, 1624, and 4320, and any other applicable law, the Secretary shall promptly issue, amend, modify, or rescind any relevant regulation, policy, or guidance to prohibit a foreign IOR from filing informal entry under regulations promulgated pursuant to 19 U.S.C. 1498.
(ii) These prohibitions for informal entry are necessary for foreign IORs importing low-value articles because such IORs are not similarly situated to U.S. IORs. This is in part due to the substantially higher volumes of low-value articles that are imported by foreign individuals and companies that are less familiar with U.S. customs and trade laws and that face lower penalty amounts and financial consequences for noncompliance where penalty amounts are correlated to value. It is critically important that the United States be able to counter these challenges through meaningful and effective enforcement actions. 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. Prohibiting the filing of informal entries for foreign IORs puts all IORs on equal footing and is necessary to treat IORs equally based on their individualized circumstances and in order to protect U.S. revenue and domestic industry, protect American consumers, strengthen national security, and maintain foreign relations. In any event, I determine 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.
(c)(i) Pursuant to 19 U.S.C. 66, 1484, 1498, 1623, 1624, and 4320, and any other applicable law, the Secretary shall promptly issue, amend, modify, or rescind any relevant regulation, policy, or guidance to require for formal entry under 19 U.S.C. 1484 that a foreign IOR: (1) may not rely on a continuous bond to meet the bond requirements for entry, except as permitted by CBP when the foreign IOR has demonstrated that the revenue would be fully protected and that compliance with the laws, regulations, and instructions enforced by CBP would be assured; and (2) be validated in CBP’s Customs Trade Partnership Against Terrorism (CTPAT), if determined by CBP to be eligible, or use a CTPAT validated and licensed customs broker to file entries with CBP.
(ii) These additional requirements for formal entry are necessary for foreign IORs because such IORs are not similarly situated to U.S. IORs. 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. Principles such as the revenue rule reinforce why it is important for the United States to impose heightened requirements against foreign IORs, which can more easily evade payment of amounts owed and other consequences for noncompliance with U.S. customs and trade laws. Foreign IORs may exploit U.S. customs and trade laws and refuse to pay their customs debts, knowing the challenges posed by international enforcement of domestic customs laws and regulations. Because these challenges are not present for U.S. IORs, the additional requirements for formal entry for foreign IORs put all IORs on equal footing and are necessary to treat IORs equally based on their individualized circumstances and in order to protect U.S. revenue and domestic industry, protect American consumers, strengthen national security, and maintain foreign relations. Moreover, I determine the current conditions of entry produce, in practice, unequal treatment of U.S. IORs when compared to foreign IORs. In any event, I determine that it is not practicable to treat foreign IORs equally to U.S. IORs, at least not in the respect detailed in subsection (b) of this section.
(d) Within 180 days of the date of this order, the Secretary shall require all IORs to maintain “good standing” with CBP, and CBP shall define “good standing” based on the IOR’s and its affiliates’ history of compliance with U.S. customs and trade laws and regulations and payment of required customs liabilities, among other relevant considerations. For example, IORs that have been found by CBP to have illegally imported fentanyl, nitazene, or other illicit substances or contraband, including precursor chemicals for the purposes of manufacturing illicit substances, shall, consistent with applicable law, not be in “good standing” with CBP. IORs not in “good standing” with CBP shall not be allowed to import into the United States or otherwise conduct activities directly related to the importation of goods, including designating a customs broker to act as IOR on their behalf.
(e) Within 180 days of the date of this order, the Secretary shall update the IOR registry consistent with the policy of this order. These updates shall include removing inactive IORs; confirming active IORs are compliant with all applicable regulations and disclosures; and creating risk-based tiers for IORs based on compliance history, enforcement actions, and audit results, among other things.
(f) Within 180 days of the date of this order, the Secretary shall establish enhanced vetting procedures, including recurrent vetting, for all individuals and entities seeking to conduct activities directly related to the importation of goods, including foreign IORs, affiliates of IORs, customs brokers, custodians of bonded merchandise, and freight forwarders.
Section 2 focuses on Importers of Record (IORs) and directs the Secretary of Homeland Security to revise eligibility rules within 180 days.
Revisions must require IORs to maintain a minimum level of tangible domestic assets or bonding to ensure compliance, and to increase required bond coverage.
All entries, both formal and informal, must now require a designated IOR with requisite assets or bond.
IORs must also provide CBP with extensive identifying information, including beneficial ownership details and anticipated import volumes.
Subsection (b) specifically prohibits foreign IORs from filing informal entries, arguing that they are not similarly situated to U.S. IORs due to high transaction volumes and lower consequences for noncompliance when assets are overseas.
Subsection (c) imposes heightened requirements for foreign IORs using formal entry, limiting their reliance on continuous bonds and requiring CTPAT validation or the use of a CTPAT-validated broker, stating these measures protect U.S. revenue and domestic industry.
Finally, subsections (d) through (f) mandate that within 180 days, all IORs must maintain "good standing" based on compliance history (e.g., avoiding smuggling illicit substances), require an updated IOR registry with risk-based tiers, and establish enhanced vetting for all parties involved in importation activities.
Sec. 3. Import Disclosure and Certification Requirements. (a) The Secretary shall take steps to establish heightened import disclosure and certification requirements consistent with the policy of this order. These heightened requirements shall include certifying compliance with critical supply chain requirements like the Countering America’s Adversaries through Sanctions Act (Public Law 115-44), 18 U.S.C 545, and others to be determined by CBP, in consultation with the heads of relevant executive departments and agencies (agencies); disclosing certain foreign tax and global business identifiers; and providing detailed information about the imported good’s supply chain and production methods, such as the manufacturer’s product identifier (e.g., model or style number) or key specifications (e.g., composition, grade, or size). The Secretary shall enforce all applicable criminal fines and civil penalties in the event of noncompliance with these heightened requirements.
(b) Within 90 days of the date of this order, the Secretary shall take steps to establish a requirement mandating the submission of any documentation or information that the foreign exporter was required to submit to the foreign customs administration prior to exporting to the United States.
Section 3 mandates the establishment of heightened import disclosure and certification requirements.
This involves certifying compliance with crucial laws, such as the Countering America’s Adversaries through Sanctions Act (CAATSA), and requires importers to disclose foreign tax identifiers and detailed information about the product's supply chain, including manufacturer details and specifications.
The Secretary must enforce all applicable criminal fines and civil penalties for noncompliance.
Additionally, within 90 days, the Secretary must mandate that any documentation provided by the foreign exporter to its own customs agency must also be submitted to U.S. Customs and Border Protection (CBP).
Sec. 4. Enforcement and Penalties. (a) The Secretary shall, to the maximum extent permitted by applicable law, take any action he deems necessary to bolster the enforcement of customs laws, regulations, and other mandates, including conditions necessary for participation in the CTPAT program. These actions shall include enforcing liquidated damages claims against bonds for noncompliance; restricting in-bond utilization; increasing audits; and imposing maximum penalties for brokers who, for example, fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to cooperate in a timely manner with requests for information by CBP.
(b) The Secretary and the Attorney General shall take all appropriate action to prioritize the enforcement of Federal law relating to importations involving products produced by forced labor, and importations involving misclassification, undervaluation, and illegal transshipment, including investigations conducted pursuant to the Enforce and Protect Act (Public Law 114-125).
(c) Within 90 days of the date of this order, the Secretary shall take steps to revise all mitigation standards consistent with the policy of this order. These revisions shall include establishing a minimum penalty floor of not less than 50 percent of the assessed penalty, absent exceptional circumstances that materially impact national security; establishing a minimum liquidated damages floor; and eliminating mitigation for repeat offenders.
Section 4 directs the Secretary to take necessary actions to strengthen customs law enforcement, including enforcing claims against bonds for noncompliance, restricting the use of in-bond facilities, increasing audits, and imposing maximum penalties on customs brokers who fail in due diligence or cooperation.
The Secretary, working with the Attorney General, must prioritize enforcement actions concerning forced labor, misclassification, undervaluation, and illegal transshipment, utilizing authorities like the Enforce and Protect Act.
Furthermore, within 90 days, penalty mitigation standards must be revised.
This includes setting a minimum penalty floor of 50% of the assessed penalty, establishing a minimum liquidated damages floor, and removing penalty mitigation options for parties that repeatedly violate the rules.
Sec. 5. Streamlined Disposal. Within 90 days of the date of this order, the Secretary shall, to the maximum extent permitted by applicable law, take actions to expedite and enhance the seizure and disposal of non-compliant imports. These actions shall include reducing or eliminating regulatory burdens to voluntary abandonment, increasing bond requirements for high-risk shipments, authorizing third-party disposal, and utilizing authorities under 19 U.S.C. 1612.
This section mandates actions within 90 days to speed up the seizure and destruction of imports that do not comply with regulations.
Methods include reducing regulatory paperwork for voluntary abandonment of the goods, raising bond demands for shipments flagged as high-risk, and permitting third parties to handle the disposal process.
Sec. 6. Transparency. Within 90 days of the date of this order, and in consultation with the heads of relevant agencies, the Secretary shall enhance transparency in customs by taking steps to establish various requirements, standards, and practices consistent with the policy of this order. These measures shall include requiring periodic review and expiration of confidentiality requests, as appropriate; and publishing annual enforcement transparency reports. Each measure established under this section shall be consistent with applicable law, national security, and any other applicable limit on the disclosure of sensitive information.
Within 90 days, the Secretary must improve customs transparency in consultation with other agencies.
This involves setting new standards that include periodically reviewing and expiring confidentiality claims when appropriate.
The agency must also begin publishing annual reports detailing enforcement activities.
All transparency measures must adhere to applicable laws, national security concerns, and existing limits on disclosing sensitive information.
Sec. 7. Consideration of Relevant Issues. In making the judgments in this order, I have considered all relevant alternatives including less restrictive alternatives, all legitimate reliance interests, and all other relevant issues and factors and determine that the action and policy judgments in this order are the reasonable result. For example, in ordering the action specified in section 2(b) and section 2(c) of this order, I have considered all relevant alternatives including less restrictive alternatives, all legitimate reliance interests, and all other relevant issues and factors, and I determine that prohibiting foreign IORs from filing informal entry pursuant to regulations promulgated under 19 U.S.C. 1498 and increasing the requirements for foreign IORs to use formal entry are reasonable policy judgments.
This section operates as a standard legal declaration confirming that the President considered all alternative actions, including less restrictive ones, and legitimate reliance interests before issuing the order.
It specifically confirms that the restrictive measures placed on foreign IORs in Section 2(b) (prohibiting informal entry) and Section 2(c) (heightened formal entry requirements) were deliberately chosen judgments deemed reasonable after evaluation.
Sec. 8. Legislation. Within 45 days of the date of this order, the Secretary, in consultation with the Director of the Office of Management and Budget and the heads of any other relevant agencies, shall submit to the President, through the Senior Counselor for Trade and Manufacturing, recommendations for legislation to strengthen customs enforcement.
The Secretary must submit recommendations for new legislation designed to strengthen customs enforcement to the President within 45 days.
This submission must be coordinated with the Director of the Office of Management and Budget and other relevant agencies, and routed through the Senior Counselor for Trade and Manufacturing.
Sec. 9. Reporting. Within 1 year of the date of this order, the Secretary shall submit a report to the President, through the United States Trade Representative, the Assistant to the President for Economic Policy, and the Senior Counselor for Trade and Manufacturing, on the effectiveness of the matters set forth in this order.
The Secretary must submit a report to the President within one year detailing how effective the implemented customs enforcement measures have been.
This report will be delivered through the United States Trade Representative, the Assistant to the President for Economic Policy, and the Senior Counselor for Trade and Manufacturing.
Sec. 10. Definitions. For purposes of this order:
(a) The term “U.S. IOR” means an IOR that, in the case of an individual, is a United States citizen or a lawful permanent resident, and in the case of an entity, is organized under the laws of the United States, is located in the United States, and has at all times controlling beneficial owner(s) who are United States citizens or lawful permanent residents; or, in the case of an entity, owns a significant amount of real property in the United States, as determined by the Secretary.
(b) The term “foreign IOR” means an IOR that does not meet the definition of “U.S. IOR” — in the case of an individual, is not a United States citizen or a lawful permanent resident, and in the case of an entity, is not organized under the laws of the United States, not located in the United States, does not have at all times controlling beneficial owner(s) who are United States citizens or lawful permanent residents, or does not own a significant amount of real property in the United States, as determined by the Secretary.
(c) For purposes of the definitions of “U.S. IOR” and “foreign IOR,” the Secretary shall provide further guidance concerning the meaning of the term “located in the United States,” and such guidance shall prioritize preventing entities from using shell companies, sham transactions, or artificial corporate or organizational structuring in an attempt to qualify as a U.S. IOR. At a minimum, to be “located in the United States” an entity must have:
(i) its principal place of business in the United States;
(ii) a physical presence where significant business activity is conducted in the United States; and
(iii) sufficient tangible assets located in the United States, taking into account the size and scale of the overall operations of the company and whether the entity is an instrumentality of a foreign manufacturer without a substantial United States presence.
Section 10 provides crucial definitions distinguishing a 'U.S. IOR' from a 'foreign IOR.' A U.S. IOR must be a U.S. citizen or lawful permanent resident (if an individual), or an entity organized/located in the U.S. with controlling U.S. beneficial owners or significant U.S. real property ownership (if an entity).
A foreign IOR is simply one that does not meet the criteria for a U.S. IOR. The order tasks the Secretary with providing detailed guidance on what it means for an entity to be 'located in the United States,' specifically emphasizing measures to prevent entities from using shell structures to qualify as U.S. IORs.
Minimum physical requirements include having a principal place of business, conducting significant business activity physically in the U.S., and possessing sufficient tangible assets there.
Sec. 11. Severability. If any provision of this order, or the application of any provision of this order to any individual or circumstance, is held to be invalid, the remainder of this order and the application of its provisions to any other individuals or circumstances shall not be affected.
This standard severability clause ensures that if a court finds any part of the executive order invalid or unenforceable in a specific situation, the rest of the order will remain in full effect.
Sec. 12. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law, including the Administrative Procedure Act, and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of Homeland Security.
DONALD J. TRUMP
THE WHITE HOUSE,
June 3, 2026.
The final section includes general provisions clarifying the order's scope.
It confirms that the order does not override existing statutory authority granted to executive departments or affect the OMB Director’s functions regarding budget and legislation.
Implementation must follow applicable law, including the Administrative Procedure Act, and is contingent on available funding.
Crucially, the order explicitly states it does not create any enforceable legal rights or benefits for any private party against the government.
The Department of Homeland Security is assigned the cost of publishing the order, which is signed by Donald J. Trump on June 3, 2026.
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