In a significant move to bolster national security and economic integrity, President Donald J. Trump has signed an executive order titled “Strengthening Customs Enforcement.” This directive aims to address systemic inefficiencies and loopholes in the U.S. customs system that have allowed foreign importers to evade federal oversight and duties.

Key Changes in Customs Enforcement

The executive order specifically targets “Importers of Record” (IORs), the entities responsible for ensuring compliance with U.S. laws and duties on imported goods. The new policy restricts foreign IORs from filing “informal entries,” commonly used for low-value shipments, and mandates that foreign importers seeking to clear customs for higher-value entries must obtain explicit permission from U.S. Customs and Border Protection (CBP). They must also participate in the Customs Trade Partnership Against Terrorism (CTPAT) program or employ a licensed U.S. customs broker.

To distinguish legitimate domestic businesses from foreign entities operating through shell corporations, the order establishes stringent criteria for being classified as a U.S. importer. Businesses must demonstrate a principal place of business in the U.S., maintain a physical presence with significant activity, and hold substantial domestic assets.

Enhanced Data Disclosure and Penalties

The order introduces rigorous data disclosure requirements, compelling importers to provide detailed supply chain information, including beneficial ownership and global business identifiers. Additionally, importers must submit the same paperwork to U.S. authorities that they provided to foreign customs agencies before shipping goods.

Enforcement agencies are directed to impose maximum penalties for customs violations, with a minimum penalty floor set at 50% of the assessed amount. Standard mitigations for repeat offenders are eliminated, underscoring the administration’s commitment to strict enforcement.

Focus on National Security and Economic Interests

The Trump administration emphasizes that customs enforcement is crucial for national security and economic policy. The order mandates the Department of Homeland Security (DHS) to implement these changes within 180 days and develop a “good standing” standard for importers. Those involved in the illegal importation of contraband or dangerous narcotics will face revoked importing privileges.

The Secretary of Homeland Security is tasked with submitting legislative recommendations to the White House within 45 days and providing a comprehensive report on the effectiveness of these reforms in one year.

Original reporting: Tampa Free Press — read the source article.