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President Trump signed an Executive Order (“EO”) on June 3, 2026, titled “<a href="https://www.whitehouse.gov/presidential-actions/2026/06/strengthening-customs-enforcement/">Strengthening Customs Enforcement.</a>” The EO directs the Department of Homeland Security (“DHS”) and U.S. Customs and Border Protection (“CBP”) to reform U.S. customs enforcement to close purported systemic loopholes, modernize oversight of importers, and undertake more rigorous enforcement of the customs laws. These changes will result in increased compliance requirements for affected companies.

Overview of the EO

The EO focuses on (i) strengthening regulatory requirements that apply to importers of record (“IOR”), (ii) enhancing import disclosure obligations, and (iii) bolstering enforcement penalties to protect national security, ensure duty collection, and combat forced labor, undervaluation of imports, and illegal transshipment.

More specifically, the EO will require that IORs, whether domestic or foreign, provide the government with additional detailed information about their ownership, business operations, and supply chains. Importers will also be required to maintain “good standing” with CBP in order to be able to continue acting as IORs, and will risk losing their importing privileges if they fail to remain in compliance with U.S. customs and trade laws.

CBP is directed to take certain actions within 90 to 180 days to implement the requirements of the EO. Where legislation may be necessary to implement requirements in the EO, the Secretary of DHS is directed to propose legislation to strengthen customs enforcement consistent with the EO.

Reforms Impacting all Importers of Record

Minimum Level of Domestic Assets in the United States:

The EO directs the DHS Secretary to revise regulations to require that all IORs maintain a minimum level of tangible domestic assets, bonding, or both, as determined by CBP, to ensure compliance with U.S. customs and trade laws. This provision will require increasing the minimum required bond coverage for IORs. In practical terms, importers will need to demonstrate greater financial accountability within the United States as a condition of continued import activity.

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Additional Identification Data:

IORs will be required to provide CBP with significantly expanded data, including anticipated import volumes, year organized, ownership and beneficial ownership disclosures, business affiliation disclosures, and domestic asset disclosures. CBP may also require any other data it deems necessary. The aim is to give CBP much greater visibility into who is importing goods and the corporate structures behind them.

Good Standing Requirement:

All IORs must maintain “good standing” with CBP, defined by compliance history, payment of customs liabilities, and other relevant factors. IORs found to have illegally imported fentanyl, nitazene, other illicit substances, or precursor chemicals will not qualify for good standing. IORs that lose good standing will be barred from importing into the United States or from designating a customs broker to act on their behalf.

Reforms Impacting Foreign Importers of Record

Certain requirements will apply only to foreign IORs.

Informal Entry No Longer an Option:

The DHS Secretary is directed to promptly issue regulations or guidance to prohibit foreign IORs from filing informal entry under 19 U.S.C. § 1498. The rationale is that this levels the playing field between domestic and foreign importers and is necessary to protect U.S. revenue, domestic industry, American consumers, and national security. Foreign importers will need to use the formal entry process going forward, which carries more extensive documentation and bonding requirements.

Every Import Must Be Subject to an Individual Bond:

For formal entries, this provision restricts foreign IORs from relying on continuous bonds unless they demonstrate to CBP that all potential duties can be paid and compliance is assured.

Additionally, foreign IORs must either be validated in CBP’s Customs Trade Partnership Against Terrorism (“CTPAT”) program—if determined eligible—or use a CTPAT-validated and licensed customs broker to file entries. This effectively creates additional compliance hurdles for foreign entities seeking to import directly into the United States.

Heightened Import Disclosure and Certification Requirements

The DHS Secretary must establish heightened import disclosure and certification requirements, including certification of compliance with laws such as the Countering America’s Adversaries Through Sanctions Act, disclosure of foreign tax and global business identifiers, and provision of detailed supply chain and production information (e.g., manufacturer’s product identifier, composition, grade, or size). Additionally, within 90 days, CBP must require submission to CBP of any documentation the foreign exporter was required to submit to the foreign customs administration prior to export to the United States. Noncompliance will be met with all applicable criminal fines and civil penalties.

Enforcement and Penalties

The DHS Secretary is authorized to strengthen customs enforcement to the maximum extent permitted by law, including by enforcing liquidated damages claims, restricting in-bond utilization, and increasing audits, with respect to brokers specifically, by and imposing maximum penalties on brokers that fail to conduct due diligence or repeatedly represent noncompliant importers. This directive continues recent trends of holding brokers to a greater level of accountability and may result in a reset of the traditional relationship between brokers and the IOR clients. DHS and the U.S. Department of Justice are directed to prioritize enforcement actions against forced labor imports, misclassification, undervaluation, and illegal transshipment.

The EO further requires DHS to revise penalty mitigation guidelines for customs violations. Revised mitigation standards must establish a minimum penalty floor of 50 percent of the assessed penalty (absent exceptional national security circumstances), a minimum liquidated damages floor, and elimination of mitigation for repeat offenders. These change represent a major shift from the current penalty guidelines – particularly for prior disclosures by IORs of violations.

This EO continues a significant shift toward stricter customs enforcement, imposing sweeping new obligations on all IORs, such as heightened bonding and domestic asset requirements to expanded data disclosures and mandatory “good standing” determinations. Additionally, foreign IORs will be subject to additional restrictions on informal entry and continuous bonding. With most provisions requiring implementation within 90 to 180 days of the EO’s date and a minimum penalty floor of 50 percent for noncompliance, companies should act now to assess their current compliance structure, review their supply chain documentation, and engage with counsel to prepare for these changes.

Given the significant shift toward stricter customs enforcement, Blank Rome offers the following analysis and practical guidance:

<a href="https://www.blankrome.com/news-and-events/tariffs-treble-damages-and-trade-enforcement-surviving-new-era-customs-crackdown/">Tariffs, Treble Damages, and Trade Enforcement: Surviving the New Era of Customs Crackdown</a>

<a href="https://www.blankrome.com/news-and-events/trade-enforcement-update-may-2026/">Trade Enforcement Update - May 2026</a>

<a href="https://www.blankrome.com/news-and-events/the-frontline-is-everywhere-what-general-counsel-need-to-know-about-the-department-of-justices-strategic-pivot-toward-customs-fraud-and-tariff-evasion/">The Frontline is Everywhere: What General Counsel Need to Know About the Department of Justice’s Strategic Pivot Toward Customs Fraud and Tariff Evasion</a>

<a href="https://www.blankrome.com/news-and-events/doj-and-dhs-launch-cross-agency-trade-fraud-task-force/">DOJ and DHS Launch Cross-Agency Trade Fraud Task Force</a>

<a href="https://www.blankrome.com/news-and-events/doj-selects-chicago-us-attorneys-office-leading-prosecutorial-partner-trade-fraud-task/">DOJ Selects Chicago U.S. Attorney's Office as Leading Prosecutorial Partner on Trade Fraud Task Force</a>

For more information or assistance, please contact <a href="https://www.blankrome.com/people/joanne-e-osendarp/">Joanne E. Osendarp</a>, <a href="https://www.blankrome.com/people/timothy-j-hruby/">Timothy J. Hruby</a>, <a href="https://www.blankrome.com/people/alan-g-kashdan/">Alan G. Kashdan</a>, <a href="https://www.blankrome.com/people/feven-t-negussie/">Feven T. Negussie</a>, or another member of Blank Rome’s <a href="https://www.blankrome.com/services-and-industries/international-trade/">International Trade</a> group.

For trade enforcement matters, please contact <a href="https://www.blankrome.com/people/anthony-rapa/">Anthony Rapa</a>, <a href="https://www.blankrome.com/people/bradley-l-henry/">Bradley L. Henry</a>, <a href="https://www.blankrome.com/people/jennifer-a-short/">Jennifer A. Short</a>, or another member of Blank Rome’s <a href="https://www.blankrome.com/services-and-industries/international-trade/trade-enforcement/">Trade Enforcement</a> team.

Trump Administration Issues Executive Order Bolstering Customs Enforcement

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Trump Administration Issues Executive Order Bolstering Customs Enforcement

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