Trade Compliance Records has published a reference on the June 3, 2026 Executive Order Strengthening Customs Enforcement, which establishes a 50 percent minimum penalty floor on customs violations and directs maximum penalties for brokers who fail to conduct due diligence on their clients.
Trade Compliance Records (tradecompliancerecords.com) has published a reference on the Executive Order titled "Strengthening Customs Enforcement," signed by President Trump on June 3, 2026. The reference addresses the order's penalty floor, broker due diligence directives, and the implementation timelines for US Customs and Border Protection and the Department of Homeland Security. The Executive Order directs CBP and DHS to revise penalty mitigation standards within 90 days, including establishing a minimum penalty floor of not less than 50 percent of the assessed penalty, establishing a minimum liquidated damages floor, and eliminating mitigation for repeat offenders. The order separately directs CBP to impose maximum penalties on brokers who fail to conduct due diligence, repeatedly represent non-compliant clients, or fail to cooperate in a timely manner with CBP information requests. Importer of Record eligibility is also being reshaped. Within 180 days, DHS is directed to revise IOR requirements, which are expected to include increased bond coverage, minimum levels of tangible domestic assets, additional identification data, beneficial ownership disclosure, business affiliation information, and risk-based tiering within an overhauled IOR registry. Foreign IORs face new restrictions on continuous bonds for formal entry and will be required to be CTPAT-validated or to file through a CTPAT-validated US customs broker. Enforcement priorities named in the order include forced labor, misclassification, undervaluation, and illegal transshipment, with investigations under the Enforce and Protect Act prioritized by DHS and DOJ. The order also directs CBP to increase audits, enforce liquidated damages claims against bonds, restrict in-bond movements, and accelerate seizure and disposal of non-compliant imports. The Trade Compliance Records reference covers the order's specific provisions with citations to the White House presidential action and the CBP newsroom announ...