Corporate supply-chain teams have fresh homework after the White House released an Executive Order titled “Strengthening Customs Enforcement.” Although signed on June 3, detailed legal analyses published yesterday outline sweeping changes that CBP must begin implementing within 90 days. Key provisions require every importer of record (IOR) to maintain minimum tangible U.S. assets, expand continuous-bond coverage, and submit detailed ownership and volume disclosures before goods can clear. Foreign IORs will lose access to informal entries for shipments under US$2,500, a move aimed at curbing duty evasion through low-value de minimis filings. The EO also instructs CBP to vet importers, customs brokers, freight forwarders and bonded warehouse operators under enhanced “good standing” criteria, creating risk-based tiers that could affect shipment release times. Companies failing to meet the new standards risk suspension from importing altogether. For multinationals relocating equipment or household goods into the U.S., the order means higher surety-bond costs, more paperwork, and potential delays if brokers are not CTPAT-validated. Mobility managers should engage logistics providers now to verify bond sufficiency and gather the newly required corporate data. Technology investments loom large: the EO hints at blockchain-style traceability tools and advanced analytics to flag undervaluation schemes. Firms that digitize invoices and maintain end-to-end visibility will be best positioned to sail through tougher pre-arrival targeting. Compliance teams should monitor the Federal Register for forthcoming CBP regulations translating the EO’s broad directives into operational rules.
Source: JD Supra / Wiley Rein LLP
