Need to Do Now
By: Adrienne Braumiller (https://www.braumillerlaw.com/bio/adrienne-
braumiller/), Partner & Founder, Braumiller Law Group and Anthony DiBello
(https://www.braumillerlaw.com/bio/anthony-dibello-law-clerk/), Law Clerk
On June 3, 2026, President Trump issued Executive Order 14411, “Strengthening Customs
Enforcement,” directing the Department of Homeland Security and U.S. Customs and
Border Protection to tighten importer eligibility, increase disclosure obligations, and
expand enforcement measures across the U.S. import system.
While many of the order’s requirements will depend on forthcoming implementation
guidance, the overall direction is already clear: CBP is moving toward a more heavily
vetted, more transparent, and more financially accountable importer-of-record
framework. Importers and customs brokers should begin preparing now, particularly
where current operations depend on foreign importer-of-record structures, limited
ownership disclosures, or compliance processes that may not withstand greater scrutiny.
Key Changes for Importers of Record
For all importers of record, the order directs DHS and CBP to revise importer eligibility
requirements. Those revisions are expected to include minimum tangible domestic
assets, higher bond requirements, and mandatory designation and reporting of the
importer of record to CBP. Importers of record are also expected to provide expanded
information to CBP, including anticipated import volumes, year organized, ownership and
beneficial ownership information, business affiliations, and domestic asset disclosures.
The order also imposes a new “good standing” requirement. Good standing will be based
on the importer’s and its affiliates’ customs compliance history, payment of customs
liabilities, and other factors CBP considers relevant. An importer of record that is not in
good standing will be barred from importing into the United States or engaging in
activities directly related to importation, including appointing a customs broker to act as
importer of record on its behalf.
In addition, the order calls for heightened disclosure and certification requirements
relating to supply chain compliance. Importers should expect expanded certification
obligations, additional reporting of tax and business identifiers, and more detailed
disclosures concerning the supply chain and production methods of imported merchandise. The order also directs CBP to require submission of information that foreign
exporters were required to provide to their own customs authorities before export to the United States. Special Impact on Foreign Importers of Record
Foreign importers of record face some of the most immediate and significant changes.
The order directs CBP to prohibit foreign importers of record from filing informal entries
and to impose stricter conditions on formal entries. Those conditions include limits on the
use of continuous bonds, unless CBP is satisfied that revenue is fully protected and
compliance can be assured. Foreign importers of record will also need to be validated in
CTPAT, if eligible, or use a CTPAT-validated and licensed customs broker to file entries.
The order’s definitions are also important. A “U.S. importer of record” must satisfy specific
citizenship, residency, organizational, beneficial ownership, and U.S. presence criteria.
Entities that do not meet those standards will be treated as foreign importers of record,
with all of the restrictions that status now carries. For companies relying on minimally
structured U.S. entities or similar arrangements, this aspect of the order may become
particularly significant once CBP issues implementing guidance.
Enforcement Pressure Is Expected to Increase
The order also directs CBP to increase enforcement through stronger use of liquidated
damages claims, more audits, heightened broker accountability, stricter mitigation
standards, and targeted enforcement against forced labor, misclassification,
undervaluation, and transshipment.
For repeat offenders, the order signals a significantly tougher posture. It calls for a
minimum penalty floor, a liquidated damages floor, and reduced mitigation flexibility.
Importers should therefore expect customs violations to become more expensive and
more difficult to resolve once these standards are implemented.
Implementation Timing and Immediate Action Items
Because the order was issued on June 3, 2026, the 90-day measures are expected around
early September 2026, while the 180-day measures are expected around late November to
early December 2026, unless CBP acts sooner through guidance or operational directives.
Requirement Deadline Expected Timing Action Now Foreign IOR informal entries prohibited
Promptly Summer 2026 Identify shipments using
foreign IOR informal entry
New formal-entry rules
for foreign IORs
Promptly Summer 2026 Review bond, broker, and
CTPAT needs
Foreign-exporter
customs information
required
90 days Early September
2026
Set up process to collect
exporter customs filings
Revised mitigation and
penalty standards
90 days Early September
2026
Reassess penalty
exposure and compliance
gaps
Requirement Deadline Expected Timing Action Now
Revised importer
eligibility rules
180 days Late November to
early December
2026
Review importer
structure, assets, and
bond sufficiency
“Good standing”
requirement
180 days Late November to
early December
2026
Audit compliance and
duty-payment history
IOR registry updates and
risk tiering
180 days Late November to
early December
2026
Confirm IOR records are
complete and current
Enhanced and recurrent
vetting
180 days Late November to
early December
2026
Map affiliates and import-
related service providers
Expanded ownership and
asset disclosures
180 days Late November to
early December
2026
Gather ownership,
affiliate, and U.S. asset
information
Higher bond and
domestic asset
requirements
180 days Late November to
early December
2026
Consult sureties, brokers,
and counsel
Practical Takeaways
Importers and customs brokers should not wait for final regulations before assessing risk.
First, companies should review bond structures and financial backing now. If CBP raises
minimum bond requirements or expects stronger domestic asset support, some
importers may need to adjust their customs structure or increase financial commitments
to maintain uninterrupted import activity.
Second, companies should begin organizing ownership, beneficial ownership, affiliate,
and domestic asset information. These disclosures are likely to become central to
importer eligibility and CBP vetting.
Third, importers of record and their affiliates should assess their compliance history now.
The forthcoming good-standing standard will likely focus on customs compliance,
customs debt payment history, and broader trade-law risk indicators. Any company with
prior customs issues should evaluate whether remediation or compliance enhancements
are needed before CBP formalizes the standard.
Fourth, importers should consider whether they can reliably obtain upstream
documentation from foreign suppliers and exporters. The order points toward deeper
scrutiny of supply-chain records and foreign-export data, which may require stronger
coordination with overseas counterparties.
Finally, companies using foreign importer-of-record structures should closely evaluate
whether those structures remain viable. The prohibition on informal entries and the
additional conditions for formal entries may significantly increase cost, complexity, and
operational risk. In some cases, businesses may want to consider whether a compliant
U.S. importer-of-record structure is feasible.
Bottom Line
EO 14411 represents a significant tightening of the importer-of-record framework.
Although key details remain to be implemented, the message is clear: importer status will
require more transparency, more financial substance, more documentation, and stronger
compliance credentials than before.
Importers and brokers that begin preparing now will be better positioned when CBP starts
translating the order into binding operational requirements.
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