Executive order tightens importer rules and customs enforcement

This executive order directs the Secretary of Homeland Security to revise customs regulations, guidance, and policies to strengthen enforcement. It calls for stricter importer of record, or IOR, standards, more importer data collection, stronger penalties, and faster seizure and disposal of noncompliant imports. The order does not itself set a new tariff rate.

For IORs, the order calls for minimum levels of tangible domestic assets, bonding, or both, higher minimum bond coverage, and additional ownership, affiliation, and domestic asset disclosures. It also directs the Secretary to prohibit foreign IORs from filing informal entry and to require for formal entry that foreign IORs generally may not rely on a continuous bond, except as permitted by CBP, and must be CTPAT validated if eligible or use a CTPAT validated and licensed customs broker. Within 180 days, DHS is also directed to require all IORs to maintain 'good standing' with CBP and to update the IOR registry and vetting procedures.

The order also directs heightened import disclosure and certification requirements, including supply chain compliance certifications and detailed product and supply chain information. Within 90 days, the Secretary is directed to establish a requirement to submit export documentation or information that the foreign exporter was required to provide to its own customs administration before export to the United States. Enforcement steps listed in the order include more audits, tighter in-bond controls, maximum penalties for certain broker misconduct, revised mitigation standards, and annual enforcement transparency reports.

Timing in the order is staged. Several actions are due within 90 days, including export document submission requirements, revised mitigation standards, streamlined disposal measures, and transparency steps. Other actions, including the broader IOR rule changes, registry updates, and vetting procedures, are due within 180 days, and the order states implementation must be consistent with applicable law, including the Administrative Procedure Act.