On June  3, President Donald Trump signed an Executive Order that he claims will strengthen the enforcement of U.S. customs laws through comprehensive reform.

According to Trump, customs reform is long overdue. "Systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade federal law," the order read.

The order directs the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to strengthen several requirements for importers of record (IORs). Examples include:

• increasing bonding requirements and requiring IORs to maintain at all times a minimum level of tangible domestic assets, bonding, or both;
• subjecting foreign IORs to heightened requirements for formal entry;
• authorizing only U.S. IORs to file informal entry;
  imposing a “good standing” requirement on all IORs; and 
• increasing vetting procedures for all individuals and entities that conduct activities directly related to the importation of goods.

The Order directs DHS and CBP to establish various disclosure and certification requirements designed to combat duty evasion and noncompliance with supply chain rules.

The Order directs DHS and CBP to increase enforcement of existing customs laws, including by establishing a 50% minimum penalty floor limiting CBP’s discretion to reduce the assessed penalties on importers who violate our customs laws. 

The Order directs DHS to enhance the seizure and disposal of non-compliant imports, including by reducing regulatory burdens to voluntary abandonment and authorizing third-party disposal.

The Order directs DHS to enhance transparency in customs, including by publishing annual transparency reports. It also directs the DHS to propose legislation to strengthen customs enforcement.