Strengthening Customs Enforcement

President Donald J. Trump has signed a sweeping Executive Order titled “Strengthening Customs Enforcement and Reclaiming National Revenue.” This order fundamentally overhauls the U.S. customs system to eliminate loopholes exploited by foreign actors, crack down on the importation of illicit substances like fentanyl, and ensure domestic businesses are not disadvantaged by "malign" trade practices.The administration frames the order as a long-overdue modernization of federal law to protect national security, secure the domestic supply chain, and guarantee the timely collection of duties.The order significantly raises the bar for who can import goods into the United States and under what conditions:Tangible Domestic Assets: All IORs must now maintain a minimum level of tangible assets within the United States or post significantly higher bonds to ensure they are accountable for duties and penalties.Beneficial Ownership: Importers must disclose their true owners, business affiliations, and anticipated import volumes to U.S. Customs and Border Protection (CBP)."Good Standing" Status: CBP will now maintain a registry of IORs in "good standing." Any importer found to have illegally imported fentanyl, precursors, or other illicit substances will immediately lose their standing and be barred from conducting further trade.In a major policy shift targeting the high-volume influx of low-value goods, the order distinguishes between U.S. and foreign importers:Ending Informal Entry for Foreigners: Foreign IORs are now prohibited from filing "informal entries" (typically used for low-value shipments). The President determined that foreign actors exploit these entries because they face lower financial consequences for noncompliance.Mandatory Brokers: Foreign IORs must now be validated in the Customs Trade Partnership Against Terrorism (CTPAT) or use a licensed, CTPAT-validated U.S. customs broker for all formal entries.Bonding Restrictions: Foreign importers may no longer rely on "continuous bonds" to meet entry requirements, ensuring the U.S. government can collect on debts more easily.The order ends what it describes as "weak enforcement mechanisms" by establishing strict new penalty standards:Penalty Floors: A minimum penalty floor of 50% of the assessed penalty is now mandated. The administration is removing the ability for officials to "mitigate" or reduce fines for repeat offenders.Broker Accountability: Customs brokers who repeatedly represent noncompliant clients or fail to conduct proper due diligence will face maximum penalties.Targeting Forced Labor: The Secretary of Homeland Security and the Attorney General are directed to prioritize enforcement against goods produced by forced labor and those involved in illegal transshipment or undervaluation.Certification of Compliance: IORs must certify they are not violating the Countering America’s Adversaries Through Sanctions Act (CAATSA).Pre-Export Disclosure: Importers must now submit the same documentation to U.S. authorities that they provided to their own foreign customs administration before exporting to the U.S.U.S. IOR defined: Must be a U.S. citizen, permanent resident, or a U.S. entity with a physical presence and principal place of business in the country.Legislative Recommendations: The Secretary of Homeland Security has 45 days to submit recommendations for additional legislation to further strengthen these measures.Operational Directives: CBP must begin implementing these regulatory changes within 90 to 180 days.Conclusion:By removing the "unequal treatment" that favored foreign shippers and closing the "informal entry" loophole, President Trump intends to reassert U.S. sovereignty over its borders and economy. The administration concludes that these common-sense reforms will dismantle the financial networks of drug traffickers and "malign actors" while putting money back into the pockets of American workers and taxpayers.