New U.S. Customs Rules Could Impact Importers And Exporters

WASHINGTON, D.C. — President Donald Trump has signed a sweeping executive order aimed at strengthening customs enforcement, imposing stricter requirements on importers and cracking down on tariff evasion, forced-labor imports and supply-chain fraud.

The order directs federal agencies to overhaul customs procedures, increase importer disclosures, strengthen audits and penalties, and close what the administration described as loopholes that allow companies to evade duties, obscure ownership structures and bypass U.S. trade laws.

“Customs enforcement is essential to the national security, foreign policy, and economy of the United States,” the executive order states. It says that “systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade Federal law.”

Speaking at the White House before the order was signed, U.S. Customs and Border Protection Commissioner Rodney Scott said the administration was extending its border security approach to trade enforcement.

“This is literally taking the same principles and applying them to trade to protect American industry,” Scott said. “Different countries and different people are undercutting our import-export rules, the tariffs, to literally undermine American businesses, and we’re going to put a stop to it.”

The order requires the Department of Homeland Security to revise importer eligibility rules within 180 days. The changes include stricter requirements for importers of record, including higher bond coverage, expanded ownership disclosures and additional information on import volumes, business affiliations and domestic assets.

The administration is also targeting foreign importers, arguing that they pose unique enforcement challenges because assets, operations and key individuals are often located overseas. The order directs agencies to prohibit foreign importers from using certain informal entry procedures and imposes additional conditions on formal entries into the United States.

Another provision establishes a “good standing” requirement for importers. Companies found to have illegally imported fentanyl, precursor chemicals or other contraband could lose the ability to import goods into the United States.

White House trade advisor Peter Navarro said the initiative would generate substantial revenue and reduce customs fraud.

“What we’re going to do here with the EO you’re going to sign, that’s about a $20 billion to $30 billion a year EO you’re going to get,” Navarro said. “We’re going to crack down on fentanyl, we’re going to crack down on the unhealthy products, the counterfeits, and all the tariff evaders.”

The executive order also prioritizes enforcement against imports involving forced labor, illegal transshipment, undervaluation and misclassification of goods.

Importers will also face heightened disclosure requirements covering supply chains, production methods and compliance with sanctions and other trade-related laws. Within 90 days, foreign exporters will be required to provide documentation to their own customs authorities before exporting goods to the United States.(IANS)

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