White House New Executive Order

On June 3, 2026 (EST), the Administration published yet another significant Executive Order that will substantially limit the ability of Foreign Importers of Record to make entry in the U.S.

They indicate the changes are necessary to protect national security, foreign policy, and the economy of the US.

Given the new bonding requirements for foreign importers, new CTPAT requirements, and the level of disclosure that will be required, experts believe the changes may limit the number of foreign importers that can, or that will want to, comply. In addition to the foreign IOR changes, the EO will increase bond costs, make changes to the CTPAT program, and add new documentation and regulatory requirements for U.S. importers, too.

An outline of the most significant changes is below.

Changes Mandated in 180 Days (roughly November 30, 2026)

1. All IORs will need to maintain a minimum level of tangible assets in the US and/or an appropriate bond to make entry. CBP has been given wide latitude in order to determine what will be required from each importer.
2. CBP has been ordered to increase the current minimum bond amount.
3. IORs will be required to provide CBP with additional data and identification information, including: anticipated import volumes, year organized, ownership and beneficial ownership disclosures, business affiliation disclosures, domestic asset disclosures, and any other data CBP deems necessary.
4. Foreign IOR’s are prohibited from filing informal entries and must file a formal entry (if they are allowed to under the above and below listed new requirements).
5. For a foreign IOR to file a formal entry, they must: 1) be a CTPAT member or use a CTPAT validated Customs broker to make entry, and 2) may not use a continuous bond to meet bonding requirements except as permitted by CBP (presumably – as noted in #1 – they would otherwise need to prove they meet the minimum level of domestic US assets required).
6. All importers – US and foreign – must maintain “good standing” with CBP, which CBP is left to define based on the IOR and its affiliates’ history of compliance. IOR’s not in good standing will lose import privileges.
7. Active IORs must be compliant with all regulations & disclosures (see below). CBP will create risk-based “tiers” for IORs based on their compliance history, enforcement actions, and audit results, “among other things.”
8. CBP will establish enhanced vetting procedures, with recurring vetting, for foreign importers, US importers, brokers, freight forwarders, and bonded carriers/warehouses.
9. Importers (foreign and US) will be required to disclose and certify their compliance with the Sanctions Act, foreign tax, and global business identifiers, detailed information about their supply chains and production methods. Non-compliance will be subject to criminal and civil penalties.

Changes Mandated in 90 Days (roughly September 2, 2026)

1. A new requirement that importers submit any documentation or information that the foreign exporter was required to submit to the foreign customs administration prior to export to the US.
2. CBP can take any action it feels necessary to bolster regulations, enforcement, and conditions necessary for participation in CTPAT. This includes enforcing liquidated damage claims, increasing audits, and imposing maximum penalties on Customs brokers.
3. The Attorney General is directed to prioritize enforcement of forced labor laws and importations involving misclassification, undervaluation, and illegal transshipment.
4. Penalty mitigation guidelines will be updated and substantially scaled back, establishing a floor for penalties and eliminating mitigation for repeat offenders.
5. CBP is directed to take action to expedite and enhance the seizure and disposal of non-compliant imports and to increase bond amounts for high-risk shipments.
6. Agencies are directed to make recommendations for additional legislation in the next 45 days that would strengthen Customs enforcement.

Going forward, CBP will define a US importer as:

1. A company or citizen (or permanent resident) located in the US and organized under the laws of the US, with controlling beneficial owners who are US citizens or permanent residents.
2. Having a significant amount of real property in the US, as determined by the Administration.
3. The company’s principal place of business must be in the US.
4. It must have a physical presence in the US where significant business activity is conducted.
5. It must have significant tangible assets in the US, taking into account the size and scale of overall operations and whether the entity is an “instrumentality” of a foreign manufacturer without a substantial US presence.
6. CBP will prioritize preventing entities from using shell, “sham”, or artificial corporate structures to qualify.

The latest U.S. Executive Order introduces significant changes for foreign importers. Dimerco will continue to provide updates on the latest developments and implementation details. Importers are encouraged to closely monitor these changes or contact Dimerco to receive timely notifications and guidance.