Executive Order: Strengthening Customs Enforcement

On June 3, 2026, President Trump signed a new executive order aimed at increasing enforcement actions for holding importers of record responsible, with particular focus on making sure foreign importers are held accountable for their imports and ensuring their duties get paid. The order establishes new regulatory requirements for maintaining IOR status and introduces additional restrictions on how foreign entities may serve as the IOR. The goal behind this order is to close loopholes, prevent dangerous imports, and making sure IOR’s are held accountable.

IOR Status Requirements

The order significantly increases the requirements for obtaining and maintaining IOR status in the United States. Companies must now provide detailed reporting, including projected import volumes, disclosure of domestic assets, and ownership structure. Additionally, foreign importers will no longer be permitted to rely on a continuous customs bond to satisfy bond requirements for entry.

Informal Entries

The executive order eliminates the ability of foreign importers to file informal entries (entry type 11). Foreign importers will no longer be permitted to submit entries valued under $2,500 to take advantage of reduced regulatory oversight. Informal entries traditionally allow importers to avoid the need for a customs bond and reduce certain fees, such as the Merchandise Processing Fee (MPF). Under the new order, these benefits will no longer be available to foreign IORs.

Additional Requirements and Enforcement

Foreign IORs will be subject to heightened compliance obligations. All export documentation or information submitted to the foreign customs authority must now be included in the entry package provided to U.S. Customs and Border Protection (CBP). This requirement is intended to increase transparency and strengthen enforcement against undervaluation, misclassification, and other forms of noncompliance.

 

Both foreign and domestic importers must prepare to comply with the enhanced enforcement measures outlined in the executive order. CBP will be increasing audits frequency and imposing maximum penalties for failure to cooperate. Failure to meet these requirements may result in fines, penalties, or suspension of import privileges into the United States. To connect with experts who can support navigating these changes, please reach out to sales@allynintl.com. 

Contributor: George Ciaffone

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About Allyn International

Allyn International provides high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit  www.allynintl.com.