Strengthening Customs Enforcement

What it does

• •Requires importers of record (IORs) to maintain minimum tangible domestic assets or bonding levels and provide CBP with additional data including ownership disclosures, business affiliations, and anticipated import volumes.
• •Prohibits foreign IORs from filing informal entries for imports and imposes heightened requirements on foreign IORs for formal entries, including CTPAT validation or use of validated customs brokers.
• •Establishes a 'good standing' requirement for all IORs based on compliance history and customs liability payment, with non-compliant IORs barred from importing; requires CBP to update the IOR registry and establish enhanced vetting procedures within 180 days.
• •Directs the Secretary of Homeland Security to create heightened import disclosure and certification requirements covering supply chain compliance, foreign tax identifiers, and detailed production method information.

Why it matters

• •The order states that customs enforcement is essential to national security and the economy, and that systemic inefficiencies and loopholes have allowed importers to evade duties and regulations related to forced labor, intellectual property, and product safety.
• •The order asserts that foreign IORs pose greater compliance and enforcement challenges than U.S. IORs because they can more easily evade payment obligations and face lower enforcement consequences when located overseas.

Who is affected

• •Foreign and domestic importers of record (IORs) seeking to conduct import activities into the United States.
• •Customs brokers, freight forwarders, custodians of bonded merchandise, and entities involved in importation activities, which must meet enhanced vetting and compliance procedures.

What happens next

The Secretary of Homeland Security must implement the regulatory and policy changes outlined in the order within 180 days, issuing, amending, or rescinding regulations and guidance to establish the new importer requirements and enhanced vetting procedures.