July 2026

The Order requires a raise in bonding requirements for Importers of Record (IORs) and require them to show they aren’t shell companies by disclosing domestic assets. The order also places increased scrutiny on foreign IORs, including not allowing them to make informal customs entries, which are typically used for low-value shipments. 

Enhanced requirements for Foreign Importers 

• maintain a bond or a minimum level of tangible domestic assets, or both
• provide to CBP, ownership and beneficial ownership disclosures, business affiliation disclosures, and domestic asset disclosures, and any other data that CBP deems necessary
• prohibits foreign Importers of Record (IOR) from filing informal entries, meaning that only U.S. IORs will be authorized to file informal entries
  • these importations, valued at less than $2,500 USD, are subject to a Merchandise Processing Fee (MPF) of $2.69 per shipment, payable to CBP. Removing the informal entry process will increase the minimum MPF to $33.58 per shipment
    • Imports of USMCA/CUSMA qualifying goods are exempt payment of MPF
  • require foreign IORs be validated by Customs Trade Partnership Against Terrorism (CTPAT), if eligible, or otherwise use a CTPAT validated and licensed customs broker to file entries
    • Clients of Universal Logistics USA can rest assured knowing we are C-TPAT validated to file entries on your behalf

Note – a foreign IOR, in the case of an entity, is one that is not organized under the laws of the United States, not located in the United States, does not have at all times controlling beneficial owner(s) who are United States citizens or lawful permanent residents, or does not own a significant amount of real property in the United States, as determined by the Secretary.

Enhanced requirements for Importers of Record 

• require that an IOR maintain at all times a minimum level of tangible domestic assets, bonding, or both, as determined by CBP to be necessary to ensure compliance with U.S. customs and trade laws, and increasing the minimum required bond coverage for an IOR
• requiring that an IOR be designated and reported to CBP, and that a bond, or sufficient tangible domestic assets, or both, be required, for all formal entries
• requiring that an IOR provide to CBP additional data and identification information, including anticipated import volumes, year organized, ownership and beneficial ownership disclosures, business affiliation disclosures, and domestic asset disclosures, and any other data that CBP deems necessary 

Increased Enforcement and Penalties

CBP is directed to expand enforcement activities, including:

• Increased audits and investigations
• More aggressive bond enforcement and liquidated damages claims and penalties
• Restrictions on in-bond shipments 

Implementation Timeline for CBP

• Within 45 days, CBP must submit legislative recommendations to the president on strengthening customs enforcement;
• Within 90 days, CBP must begin implementing enhanced disclosure requirements, revise enforcement penalty provisions, and require foreign exporters to submit all outstanding documentation;
• Within 180 days, CBP must revise importer eligibility standards, establish enhanced vetting procedures, implement the “good standing” framework, apply foreign IOR restrictions and bonding changes, and update the IOR registry consistent with this order; and
• In one year, CBP must submit an implementation report to the president.

For Canadian, and other foreign exporters, acting as non-resident importers, now is an appropriate time to review customs compliance procedures and identify potential areas of risk before they become the subject of an audit or enforcement action.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.