Gregory T Bryant, CPA | Esq
Caroline White, Esq
On June 3, 2026, President Trump issued Executive Order 14411 to “strengthen its custom enforcement through comprehensive reform,” requiring importers adhere to stricter standards to be eligible to import goods into the US. Foreign importers of record (IORs) specifically will feel the effects of this Order within the next six months as it requires significant US assets or bonds to be maintained to import goods into the US. By December 3, 2026, the Department of Homeland Security (DHS) must revise its policies to comply with the mandates of the EO. Given the sweeping nature of the EO, this is a short turnaround, and foreign importers should review their structure immediately.
For all IORs, both US and foreign, a minimum level of tangible US assets or bond coverage must be maintained at all times, and the minimum required bond coverage is being increased. Additionally, all IORs must provide more in-depth data and disclosures and comply with the new “good standing” requirement, which is based on IORs’ customs compliance history. If an IOR is not in good standing, they may not conduct any activities related to importing goods, including designating a broker to act as an IOR for them. Penalties and assessable damages for failure to comply are also increased by the EO.
The EO also tightens the requirements for an IOR to be classified as a “US IOR” instead of a “foreign IOR.” To be a US IOR, the entity has historically needed to be “located in the United States,” but the EO requires DHS to give more detailed guidance on what this means, and at the least, it must have its principal place of business in the US, a physical presence that conducts significant business activity in the US, AND sufficient tangible US assets, determined on a case-by-case basis depending on company’s overall operations.
For foreign IORs specifically, informal entries will be prohibited once DHS implements the revised policies (due by December 3, 2026). Historically, informal entries were used for lower-value imports and did not require a bond. These are completely prohibited for foreign IORs under the new guidance, with no exceptions. Additionally, continuous bonds will not be sufficient unless specifically authorized by CBP on a case-by-case basis. Most importers currently use continuous bonds to cover multiple imports over months-long periods, and the costs, administrative burden, and cash-flow demands required for shifting to single-entry bonds or other enhanced bonding arrangements will not be feasible. Instead, if continuous bonds are not a viable option for an importer under the new guidance, foreign IORs will essentially be forced to partner with a US trading company or a C-TPAT-certified 4PL. Additionally, foreign IORs that remain eligible to import must be “validated” in CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) or use a validated customs broker.
The requirements of EO 14411 undoubtedly will have a significant impact on foreign IORs. Having a US entity is not a guarantee of “US IOR” status, and even US IORs must meet the new US asset and bonding requirements. Foreign IORs are completely barred from informal entries, meaning that bonds are required for every entry, and continuous bonds are not always enough. Companies relying on foreign IOR structures should proactively assess their current structure immediately. Coordinating between customs, trade compliance, and tax advisors early will be key, given how the new disclosure and bonding requirements intersect with broader structuring decisions.