What the “Strengthening Customs Enforcement” Executive Order Means for Importers
On June 3, 2026, the White House issued an executive order titled Strengthening Customs Enforcement, directing the Department of Homeland Security and U.S. Customs and Border Protection (CBP) to overhaul how importers are vetted, bonded, and held accountable. The order also raises disclosure requirements, increases penalties, and places new restrictions on how foreign-based importers bring goods into the United States.
None of these changes take effect overnight. Most require CBP to write or revise regulations through the standard rulemaking process, which means Federal Register notices and public comment periods are likely before any rule becomes binding. But the direction of travel is clear, and importers who prepare early will be in a far stronger position than those who wait for the rules to land.
At Brauner International, we work with importers long before cargo is shipped, on classification, valuation, and country of origin, precisely so issues are addressed before they become problems. This order is a reminder of why that approach matters. Below is a plain-English breakdown of what the order does, when the deadlines fall, and what you can do now.
What the executive order actually does
The order opens with the administration’s rationale: that effective customs enforcement protects national security, the economy, and lawful trade, and that “customs reform is long overdue.” It points to undervaluation, withheld importer information, and duty-avoidance schemes as the problems it intends to address. (You can read the full text of the order and the accompanying White House fact sheet directly.)
In practical terms, the order touches six areas: importer of record (IOR) eligibility, foreign IOR restrictions, import disclosures and certifications, enforcement and penalties, streamlined disposal of noncompliant goods, and transparency reporting. CBP confirmed the policy direction in its own newsroom release, noting that bond rules are being updated to set new minimums and that importers must maintain good standing or risk losing importing privileges.
Changes for every importer of record
Within 180 days, the order directs CBP to revise IOR eligibility rules. The changes that will apply to all importers of record include:
- Minimum assets or bonds. Every IOR will be required to maintain a minimum level of tangible domestic assets, bonding, or both, as CBP determines necessary.
- Higher bond coverage. The minimum required bond coverage for an IOR is set to increase.
- More data at registration. IORs will need to disclose additional information, including anticipated import volumes, year organized, ownership and beneficial ownership, business affiliations, and domestic assets, plus any other data CBP deems necessary.
- A “good standing” requirement. CBP will define “good standing” based on an importer’s and its affiliates’ compliance history and payment of customs liabilities. Importers not in good standing will be barred from importing, and from designating a customs broker to act as IOR on their behalf. The order specifically names parties found to have illegally imported fentanyl, nitazenes, or precursor chemicals as examples of importers who would not qualify.
- A cleaned-up registry with risk tiers. CBP will remove inactive IORs, confirm that active IORs are compliant, and assign risk-based tiers based on compliance history, enforcement actions, and audit results.
- Enhanced and recurrent vetting. Vetting will extend beyond importers to affiliates of IORs, customs brokers, custodians of bonded merchandise, and freight forwarders.
The takeaway for established importers is straightforward: your compliance record is becoming an asset or a liability in a far more formal sense than before. Clean entries, accurate valuation, and timely payment of duties will increasingly determine your standing with CBP.
New rules specifically for foreign importers of record
The order draws a sharper line than ever between a U.S. IOR and a foreign IOR, and the distinction carries real consequences.
Under the order’s definitions, a U.S. IOR is, in the case of an entity, one that is organized under U.S. law, located in the United States, and controlled at all times by beneficial owners who are U.S. citizens or lawful permanent residents, or that owns a significant amount of U.S. real property as determined by the Secretary. A foreign IOR is any importer that does not meet that definition.
The order also instructs CBP to apply a substance-over-form test to what it means to be “located in the United States,” with guidance aimed at preventing shell companies, sham transactions, and artificial corporate structures from qualifying as U.S. importers. At a minimum, an entity must have its principal place of business in the United States, a physical presence where significant business activity occurs, and sufficient tangible U.S. assets relative to the scale of its operations.
For foreign IORs, two restrictions stand out:
- No more informal entries. The order directs CBP to prohibit foreign IORs from filing informal entries, the channel commonly used for low-value shipments. The order reasons that foreign importers of low-value goods are not similarly situated to U.S. importers and face lower financial consequences for noncompliance.
- Tougher formal entry requirements. A foreign IOR may still file formal entries, but generally may not rely on a continuous bond unless it demonstrates to CBP that revenue is fully protected and compliance is assured. The foreign IOR must also be validated in CBP’s Customs Trade Partnership Against Terrorism (CTPAT) program, if eligible, or file through a CTPAT-validated and licensed customs broker.
If your supply chain runs through a non-U.S. importing entity, this is the section to study most closely. Companies relying on foreign-based importers or informal entry channels should review their import setup now rather than after the rules are finalized.
New disclosure and certification requirements
The order directs CBP to establish heightened import disclosures and certifications, including:
- Certifications of compliance with critical supply-chain laws, including the Countering America’s Adversaries Through Sanctions Act (CAATSA).
- Disclosure of certain foreign tax and global business identifiers.
- More detailed product and production information, such as the manufacturer’s product identifier (model or style number) or key specifications like composition, grade, or size.
Within 90 days, CBP is also directed to require importers to submit the documentation or information that the foreign exporter provided to its own country’s customs authority before exporting to the United States.
Tougher enforcement and higher penalties
The order instructs CBP to bolster enforcement to the maximum extent permitted by law. Expect:
- More audits and more aggressive enforcement of liquidated damages claims against bonds.
- Restrictions on in-bond use.
- Maximum penalties for brokers that fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to respond to CBP in a timely manner.
- Priority enforcement against forced labor, undervaluation, misclassification, and illegal transshipment, including duty-evasion investigations under the Enforce and Protect Act (EAPA).
Penalty mitigation also tightens significantly. Within 90 days, CBP is directed to establish a minimum penalty floor of not less than 50 percent of the assessed penalty, set a minimum liquidated damages floor, and eliminate mitigation entirely for repeat offenders.
The order rounds out with directives to expedite seizure and disposal of noncompliant goods, publish annual enforcement transparency reports, deliver legislative recommendations within 45 days, and report to the President on the order’s effectiveness within one year.
What the NCBFAA’s customs counsel is saying
The National Customs Brokers and Forwarders Association of America (NCBFAA) circulated an analysis to its membership prepared by its customs counsel, Lenny Feldman of Sandler, Travis & Rosenberg, P.A. (ST&R). Feldman is a Managing Partner at ST&R and serves as the NCBFAA’s general and customs counsel.
In that analysis, ST&R characterizes the order as effectively creating “a Customs Modernization bill that will impact significant portions of the Customs Regulations.” The firm’s read is that the most immediate practical effect for clients will be an increase in enforcement, bonding, data submissions, and compliance requirements for importers of record, especially foreign IORs.
ST&R also offers a note of reassurance on timing. Because the White House fact sheet indicated that DHS and CBP will engage stakeholders through the standard rulemaking process, the firm anticipates that CBP will issue Federal Register notices within the timelines the order specifies, seeking public comment, which may give parties time to adjust operations. In other words, the deadlines below are deadlines for CBP to act, not dates on which importers suddenly face new binding rules.
Source: NCBFAA membership analysis, “ST&R Executive Order Analysis: Customs Enforcement Overhaul,” prepared by NCBFAA Customs Counsel Lenny Feldman, Sandler, Travis & Rosenberg, P.A., June 4, 2026.
Timeline of required actions
The order sets a clear sequence of deadlines, measured from June 3, 2026:
| Days from order | Required action |
|---|---|
| 45 days(mid-July 2026) | DHS submits legislative recommendations to strengthen customs enforcement. |
| 90 days(early September 2026) | CBP requires submission of documents the foreign exporter filed with its own customs authority; revises mitigation standards (50 percent penalty floor, liquidated damages floor, no mitigation for repeat offenders); expedites seizure and disposal of noncompliant goods; enhances transparency through confidentiality review and annual reports. |
| 180 days(early December 2026) | CBP revises IOR eligibility rules (minimum assets or bonds, higher bond coverage, expanded disclosures); requires all IORs to maintain good standing; updates the IOR registry with risk-based tiers; establishes enhanced and recurrent vetting for IORs, affiliates, brokers, bonded custodians, and freight forwarders. |
| 1 year(June 2027) | The Secretary reports to the President on the order’s effectiveness. |
Keep in mind these are the dates by which CBP is directed to act. Actual compliance dates for importers will depend on the rules and Federal Register notices that follow.
What importers should do now
You do not need to wait for final rules to start preparing. Practical steps include:
- Confirm your IOR status. Determine whether your importing entity meets the order’s definition of a U.S. IOR, particularly if you import through a non-U.S. affiliate or a thinly staffed domestic entity.
- Review your bond. Speak to your Brauner representative about whether your current bond coverage is adequate for the volumes and risk profile CBP is likely to expect.
- Tighten your data. Begin gathering the additional information the order points to, including ownership and beneficial ownership, business affiliations, and detailed product specifications.
- Watch the Federal Register. Public comment periods are an opportunity to understand the rules and, where appropriate, to weigh in.
This is exactly the kind of work Brauner International has done for importers since our founding in 1931: getting classification, valuation, and country of origin right before the government orders it, not after problems arise. If you are unsure how this order affects your imports, contact our team and we will help you map a path forward.
Frequently asked questions
When does the “Strengthening Customs Enforcement” executive order take effect? The order was signed on June 3, 2026, but most of its provisions are not immediately binding. It directs CBP to write or revise regulations within 45, 90, and 180 days, with a one-year effectiveness report. Actual compliance dates for importers will follow through the standard rulemaking and Federal Register process.
What is the difference between a U.S. importer of record and a foreign importer of record? Under the order, a U.S. IOR is generally a U.S. citizen or lawful permanent resident, or an entity organized and located in the United States that is controlled by U.S. citizens or lawful permanent residents (or that owns significant U.S. real property). A foreign IOR is any importer that does not meet that definition. Foreign IORs face new restrictions, including a prohibition on informal entries and tougher formal-entry bonding and CTPAT requirements.
Will my customs bond requirements change? Likely yes. The order directs CBP to increase minimum bond coverage and to require all importers of record to maintain a minimum level of tangible domestic assets, bonding, or both. The exact amounts will be set through CBP rulemaking.
What does “good standing” with CBP mean? CBP will define good standing based on an importer’s and its affiliates’ compliance history and payment of customs liabilities. Importers not in good standing will be barred from importing and from designating a broker to act as IOR on their behalf.
Where can I read the executive order myself? The full text is published on the White House website at whitehouse.gov, with a companion fact sheet. CBP’s summary is available in its newsroom release.
This article is provided by Brauner International for general information and does not constitute legal advice.