New Executive Order Strengthening Customs Enforcement: What Importers Need to Know

On June 3, 2026, President Trump signed an executive order titled “Strengthening Customs Enforcement” (the Order), which directs the Department of Homeland Security (DHS) and US Customs and Border Protection (CBP) to update and strengthen rules governing importation into the United States. Once implemented, the Order will impose significant new requirements on importers of record (IORs), sharply restrict the ability of foreign entities to serve as IORs, and increase the consequences of non-compliance. Most provisions require future rulemaking by DHS and CBP before they become operative.

The Order, which calls for “comprehensive reform” to strengthen customs enforcement, addresses several aspects of the administration’s planned efforts.Other areas of focus of the Order include: (1) heightened IOR eligibility and disclosure requirements; (2) updated standards for informal and formal entries by foreign IORs; and (3) efforts to streamline seizure and disposal of noncompliant imports. This Client Alert summarizes the Order’s key updates with respect to enhanced enforcement tools, priorities, and penalty reforms.

Enhanced Enforcement of Customs Laws

The Order notes that “insufficient enforcement mechanisms” (among other things) have created opportunities for bad actors to evade federal customs and tariff laws. To address these stated concerns, the Order directs the Secretary of Homeland Security to take any action necessary to bolster customs enforcement, including:

• enforcing liquidated damages claims (i.e., administering predetermined penalties against IORs or brokers for failing to meet the conditions of their customs bond);
• restricting in-bond utilization (i.e., limiting an IOR’s ability to move goods into the United States without paying duties); and
• increasing audit activity.

This last element is consistent with a trend of increased CBP audit activity under the Trump administration. In 2024, CBP completed 417 audits, as compared to 465 in FY 2025, representing a 10% increase year over year. Through April 2026, CBP was on pace to conduct 543 audits in FY 2026, which would reflect another 17% year-over-year increase.

The Order not only focuses on enforcement against IORs, but it also targets brokers. The Order instructs DHS to seek maximum penalties on noncompliant brokers, including by issuing citations to brokers who fail to conduct due diligence, repeatedly represent noncompliant clients, or fail to cooperate in a timely manner with a request for information by CBP.

Enforcement Priorities

The Order also offers insight into the administration’s enforcement priorities, instructing DHS and the Department of Justice (DOJ) to prioritize enforcement relating to:

• products produced by forced labor;
• misclassification and undervaluation; and
• illegal transshipment.

Increased Penalty Exposure

Once implemented, the Order also will increase potential penalties for noncompliance. Within 90 days of the Order (or September 1, 2026), CBP is required to revise all penalty mitigation standards to:

• establish a minimum penalty floor of not less than 50% of the assessed penalty (absent exceptional circumstances that materially impact national security);
• establish a minimum liquidated damages floor; and
• eliminate mitigation for repeat offenders (i.e., the ability to request a reduction or cancellation of fines or penalties).

These provisions will substantially curtail CBP’s historic discretion to reduce penalties and will materially increase financial exposure for importers found in violation.

Key Takeaways for Importers

Companies involved in US import activity should consider the following in response to this new Order:

• Assess heightened enforcement exposure: This aggressive enforcement posture from CBP — combined with the push to secure higher penalties — represents a significant shift in exposure for importers. Importers should also view these developments in tandem with the DOJ’s stated priorities for enforcing trade and customs fraud, as well as the DOJ’s aggressive use of the False Claims Act to combat tariff evasion and customs fraud (as discussed in this Latham webcast). Companies should reassess their risk tolerance and compliance programs in light of this substantially increased enforcement and related financial exposure.
• Incorporate CBP enforcement priorities into compliance programs: The administration is being transparent with importers about schemes that will draw the most enforcement attention. Given this insight, companies should be designing their customs compliance programs (including monitoring and oversight) to prioritize forced labor compliance, classification and valuation, and transshipment activity.