President Donald Trump signed an Executive Order titled “Strengthening Customs Enforcement” on June 3, 2026, directing the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to overhaul customs enforcement practices across the board. The order signals one of the most sweeping reforms to U.S. customs policy in decades and will affect importers, customs brokers, freight forwarders, and foreign entities operating in the U.S. trade environment.
“Importing into the U.S. has for too long been treated as a right and not a privilege,” said CBP Commissioner Rodney Scott. The order targets duty evasion, transshipment, forced labor compliance, valuation fraud, and the entry of unlawful and dangerous goods.
Key Requirements for Importers of Record
Within 180 days, DHS and CBP must revise importer eligibility regulations to require:
• Importers of Record (IORs) to maintain minimum levels of tangible domestic assets or bonding at all times, with increased minimum bond coverage.
• IORs to disclose ownership, beneficial ownership, business affiliations, anticipated import volumes, and domestic asset information.
• All IORs to maintain “good standing” with CBP based on compliance history, enforcement actions, and payment of customs liabilities.
• A risk-based tiering system for IORs, with enhanced and recurring vetting for customs brokers, freight forwarders, and custodians of bonded merchandise.
Heightened Restrictions on Foreign IORs
The order imposes new restrictions on foreign importers of record, including a prohibition on filing informal entries and a requirement to either be validated under the Customs Trade Partnership Against Terrorism (CTPAT) program or use a CTPAT-validated customs broker for all formal entries.
Stronger Enforcement and Penalties
Within 90 days, DHS and CBP must strengthen enforcement by setting a minimum penalty floor of at least 50% of assessed penalties, eliminating mitigation for repeat offenders, increasing audits, and imposing maximum penalties on brokers who fail to conduct adequate due diligence. The order also directs expedited seizure and disposal of non-compliant imports.
What Importers Should Do Now
While most changes require rulemaking before taking effect, companies should begin reviewing their importer of record status, bonding levels, supply chain disclosures, and customs broker relationships now. Foreign IORs in particular face significant new compliance obligations and should assess their eligibility and exposure ahead of the 180-day implementation window.
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This Executive Order signals a fundamentally more rigorous U.S. customs enforcement environment. Alba’s trade compliance team helps importers assess their IOR status, bonding requirements, broker due diligence obligations, and readiness for the new disclosure and vetting standards ahead of CBP rulemaking.
Contact our team to learn how these developments could impact your business: https://albawheelsup.com/contact/
