TL;DR: President Trump signed a sweeping customs enforcement Executive Order on 3 June 2026. Foreign importers of record face a ban on informal entries and tighter bond rules. A 50% minimum penalty floor applies to all violations. Most changes take effect within 90 to 180 days.
On 3 June 2026, President Trump signed an Executive Order directing the most significant overhaul of U.S. customs enforcement in years. The order targets duty evasion, forced labour non-compliance, misclassification, and illegal transshipment. It puts every importer of record on notice: the rules have changed, and the penalties are real.
CBP Commissioner Rodney Scott set the tone immediately.
“Importing into the U.S. has for too long been treated as a right and not a privilege.”
CBP Commissioner Rodney Scott
Most changes require no new legislation. CBP can move within 90 to 180 days. Importers who wait will be caught out.
Two-Track System: U.S. IORs vs Foreign IORs
The order creates a hard split between U.S. importers of record (IORs) and foreign IORs. U.S. IORs must hold a significant amount of real property in the United States. Any entity using shell companies, sham transactions, or artificial corporate structuring to qualify will not pass vetting. Enhanced registration and beneficial ownership disclosure requirements apply to all IORs within 180 days, by late November 2026.
Foreign IORs face the steeper climb. They are banned entirely from filing informal entries, which cover shipments valued at $2,500 or less. For formal entries, foreign IORs cannot use continuous bonds unless CBP confirms revenue is fully protected. They must be validated under the Customs Trade Partnership Against Terrorism (CTPAT) programme or retain a CTPAT-validated licensed customs broker. These are not minor administrative steps. They require immediate action on broker relationships and compliance frameworks.
Higher Penalties, No Mitigation for Repeat Offenders
Within 90 days, DHS must revise penalty mitigation guidelines. The new minimum floor sits at 50% of the assessed penalty. That is a hard floor, absent exceptional circumstances directly affecting national security. Previously, CBP held wide discretion to reduce penalties significantly. That discretion is now curtailed. Importers who resolved past violations with nominal payments should not expect the same outcome going forward.
Repeat offenders receive no mitigation at all. The order also directs maximum penalties for non-compliant customs brokers and increased audit activity across forced labour, undervaluation, misclassification, and transshipment cases. Enforcement priorities are specific and coordinated between DHS and the Department of Justice. Importers in high-risk categories need to review their exposure now, not when a penalty notice arrives.
New Disclosures, Good Standing, and the De Minimis Repeal
Within 90 days, CBP will require importers to submit documentation that the foreign exporter was required to provide to their own government’s customs authority before shipping to the U.S. All IORs must certify compliance with CAATSA, the anti-North Korean forced labour law, along with anti-smuggling statutes. Any importer found to have illegally imported fentanyl, nitazene, or precursor chemicals loses good standing immediately and cannot import into the United States.
The de minimis exemption, which allowed low-value shipments to enter duty-free, is also gone. The One Big Beautiful Bill Act permanently repealed the statutory basis for the exemption worldwide, effective 1 July 2027. E-commerce importers who built models around the de minimis threshold have until that date to restructure. Legislative recommendations from DHS are due to the President by mid-July 2026, within 45 days of the order. A full effectiveness report follows in June 2027.
What This Means for Freight Forwarders
For freight forwarders managing importer of record arrangements on behalf of clients, this order changes the operating environment materially. Foreign clients using U.S. legal entities without domestic real estate holdings may not qualify as U.S. IORs. That shifts them into the foreign IOR category with all the restrictions that follow. Forwarders need to audit every IOR arrangement now and confirm which category each client falls into before the 180-day window closes.
Supply chain documentation requirements are also expanding. Forwarders who handle import clearance will face tighter scrutiny on production method disclosures, origin certifications, and beneficial ownership data. The transparency provisions include annual CBP enforcement reports and periodic review of confidentiality requests. This is a more visible, more accountable enforcement regime. At Cargo Solutions Network, we work with freight professionals who need to stay ahead of exactly these kinds of regulatory shifts. The forwarders who act fast will protect their clients. The ones who wait will absorb the cost.
Frequently Asked Questions
When do the new customs enforcement rules take effect?
Most changes are due within 90 to 180 days of the 3 June 2026 signing date. Penalty revisions, foreign export documentation requirements, and disposal procedures are due by early September 2026. IOR eligibility rules, asset thresholds, and enhanced vetting are due by late November 2026. The de minimis repeal takes effect 1 July 2027.
Who counts as a foreign IOR under the new order?
The order creates a narrow definition of U.S. IOR, requiring ownership of significant tangible domestic assets, including real property, in the United States. Any entity that does not meet this definition, including U.S.-registered companies without domestic real estate, falls into the foreign IOR category. Foreign IORs face a ban on informal entries and restrictions on continuous bond use.
What is the new penalty floor and does it apply to all violations?
The minimum penalty floor is set at not less than 50% of the assessed penalty. It applies to all customs law violations, absent exceptional circumstances that materially affect national security. Repeat offenders receive no mitigation. This replaces the previous system where CBP had wide discretion to reduce penalties substantially.
What is the good standing requirement?
All IORs must maintain good standing with CBP, defined by compliance history and timely payment of customs liabilities. Any importer found to have illegally imported fentanyl, nitazene, or other illicit substances or precursor chemicals is automatically not in good standing and is barred from importing into the United States.
What should forwarders do right now?
Audit every IOR arrangement to confirm U.S. or foreign IOR status. Verify that customs brokers hold CTPAT validation. Review supply chain documentation practices for compliance with new disclosure requirements. Check that all client certifications under CAATSA and anti-smuggling statutes are current. Do not wait for the 90-day rules to publish before starting.
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