Source: Hogan Lovells
Date: 9th June 2026 

Executive Order introduces stricter requirements for foreign importers and expands customs enforcement authority.

A new Executive Order issued by the Trump administration is set to significantly strengthen US customs enforcement and impose stricter requirements on Importers of Record (IORs), particularly non-resident importers.

The Executive Order directs US Customs and Border Protection (CBP) to revise importer regulations, enhance importer vetting procedures, tighten bonding requirements, and expand compliance obligations across the import process.

While the Executive Order establishes the policy direction, many of the specific requirements will be developed and implemented by CBP over the coming months.

Foreign Importers Face Increased Scrutiny

One of the most significant changes is the introduction of a new framework for Foreign Importers of Record (Foreign IORs).

Under the Executive Order, a Foreign IOR generally refers to an importer that lacks one or more of the following:

• A US organisation or principal place of business
• A physical presence with significant business activity in the United States
• Sufficient domestic assets or real property
• US controlling beneficial ownership

The exact criteria remain subject to further clarification by CBP. The agency will have significant discretion in determining whether a company possesses sufficient domestic assets and a meaningful US presence, with further guidance expected during implementation.

New Requirements for Foreign IORs

The Executive Order outlines several restrictions and compliance requirements for Foreign IORs, including:

• Mandatory participation in CBP’s Customs Trade Partnership Against Terrorism (CTPAT) programme, or the use of a CTPAT-certified customs broker
• Increased use of single-entry bonds, with continuous bonds becoming subject to CBP approval
• More stringent bond requirements and financial scrutiny
• Enhanced importer vetting and compliance reviews

These measures could significantly increase compliance costs and administrative obligations for non-resident importers.

Expanded Requirements for All Importers

The Executive Order also introduces new reporting and compliance obligations that will affect all Importers of Record, regardless of location.

Importers may be required to provide:

• Beneficial ownership information
• Business affiliation disclosures
• Anticipated import volumes
• Corporate registration details
• Domestic asset information
• Additional information requested by CBP

Importers may also be required to submit export documentation previously filed with foreign customs authorities to improve trade verification and enforcement efforts.

“Good Standing” Requirement Introduced

Another major development is the creation of a new “Good Standing” standard for Importers of Record.

CBP has been instructed to establish criteria based on an importer’s compliance history, payment of customs liabilities, and adherence to US trade laws.

Importers that fail to meet these standards could face restrictions on their ability to import goods into the United States. Companies that lose their Good Standing status may also be prohibited from appointing a customs broker to act on their behalf, creating significant operational challenges for affected importers.

This could become one of the most impactful provisions of the Executive Order once implemented.

Implementation Timeline: 

Immediate / Prompt Actions

CBP has been instructed to:

• Restrict Foreign IOR use of informal entry procedures
• Require Foreign IORs to use formal entry processes
• Limit the use of continuous customs bonds by Foreign IORs

Within 45 Days

CBP must submit proposals for additional legislative changes designed to strengthen customs enforcement authority.

Within 90 Days 

CBP is expected to:

• Require submission of foreign customs documentation used during export
• Introduce revised penalty mitigation guidelines with a minimum penalty floor of 50%
• Strengthen seizure, abandonment and enforcement procedures
• Increase bond requirements for higher-risk shipments
• Improve transparency through additional enforcement reporting

Within 180 Days

CBP is expected to:

• Implement minimum domestic asset and bonding requirements
• Introduce enhanced importer identification and beneficial ownership reporting
• Establish and enforce Good Standing requirements
• Create risk-based importer classifications based on compliance history, audit findings and customs performance records
• Implement enhanced vetting for importers, customs brokers and freight forwarders

No Fixed Deadline

CBP must continue developing:

• Additional supply chain reporting requirements
• Certification programmes
• Foreign tax disclosure requirements

Ongoing Measures

The Executive Order also directs CBP to:

• Increase customs audits and compliance reviews
• Strengthen bond enforcement
• Increase restrictions on in-bond movements
• Enhance broker due diligence requirements
• Expand the use of maximum penalties for certain violations

Foreign importers should begin reviewing their current importing structures and compliance programmes now. Companies operating under Delivered Duty Paid (DDP) arrangements may be particularly affected if they currently act as non-resident Importers of Record. Businesses should also confirm whether their customs brokers are CTPAT-certified and assess whether their bonding arrangements meet future requirements.

The Executive Order signals a significant shift toward tighter customs controls, increased importer accountability and greater supply chain transparency. Importers should expect more documentation requirements, enhanced vetting procedures and stricter enforcement activity as CBP rolls out the new framework over the next six months.

Freight forwarders and customs brokers should prepare for enhanced vetting, increased compliance expectations and greater scrutiny from CBP. As importers navigate the new requirements, logistics service providers are likely to play an increasingly important role in supporting customs compliance, importer qualification and supply chain transparency initiatives.

This Executive Order represents one of the most significant proposed changes to US importer compliance requirements in recent years. While many operational details remain under development, the overall direction is clear: greater scrutiny of importers, stronger enforcement measures and increased accountability throughout the supply chain.

Businesses involved in US trade should closely monitor CBP’s implementation plans and begin evaluating their importer structures, compliance processes and customs partnerships to ensure they remain prepared as these new requirements take shape. Particular attention should be paid to importer eligibility, bonding arrangements, customs broker relationships and evolving Good Standing requirements, as these areas are likely to have the greatest operational impact.