Trump customs order tightens scrutiny of imports, crack down on tariff cheats
Washington, June 4 (IANS/WISHAVWARTA) President Donald Trump has signed a sweeping executive order to strengthen customs enforcement, impose stricter requirements on foreign importers and crack down on tariff evasion, forced labour imports and supply-chain fraud, signalling tougher oversight for companies exporting goods to the United States.
The order directs federal agencies to overhaul customs procedures, increase importer disclosures, strengthen audits and penalties, and close what the administration described as longstanding loopholes that allow companies to evade duties, obscure ownership structures and bypass US trade laws.
“Customs enforcement is essential to the national security, foreign policy, and economy of the United States,” the executive order, signed on Wednesday (local time), states. It says that “systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade Federal law.”
Speaking at the White House before signing the order, US Customs and Border Protection Commissioner Rodney Scott said the administration was extending its border security approach to trade enforcement.
“This is literally taking the same principles and applying them to trade to protect American industry,” Scott said. “Different countries and different people are undercutting the — our import export rules, the tariffs to literally undermine American businesses, and we’re going to put a stop to it.”
The order requires the Department of Homeland Security to revise importer eligibility rules within 180 days. Among the changes are stricter requirements for importers of record, including higher bond coverage, expanded ownership disclosures and additional information on import volumes, business affiliations and domestic assets.
The administration is also targeting foreign importers, arguing that they pose unique enforcement challenges because assets, operations and key individuals are often located overseas. The order directs agencies to prohibit foreign importers from using certain informal entry procedures and imposes additional conditions on formal entries into the United States.
Another key provision establishes a “good standing” requirement for importers. Companies found to have illegally imported fentanyl, precursor chemicals or other contraband could lose the ability to import goods into the United States.
The order further mandates enhanced vetting of importers, customs brokers and freight forwarders and calls for the creation of risk-based compliance tiers based on enforcement history and audit results.
Peter Navarro, Trump’s trade advisor, said the initiative would generate substantial revenue while reducing customs fraud.
“What we’re going to do here with the EO, you’re going to sign, that’s about a $20 billion to $30 billion a year EO you’re going to get,” Navarro said. “We’re going to crack down on fentanyl, we’re going to crack down on the unhealthy products, the counterfeits, and all the tariff evaders.”
The executive order also prioritises enforcement against imports involving forced labour, illegal transhipment, undervaluation and misclassification of goods. It directs federal agencies to increase audits, impose stronger penalties and expedite the seizure and disposal of non-compliant imports.
In addition, importers will face heightened disclosure requirements covering supply chains, production methods and compliance with sanctions and other trade-related laws. Within 90 days, foreign exporters will also be required to provide documentation to their own customs authorities before exporting goods to the United States.
White House Staff Secretary Will Scharf said the order was designed to ensure that importers accurately report goods entering the country and properly account for duties and tariffs.
“The idea here is to ensure that importers of record, other people moving goods across our border, are accurately reporting what they’re bringing in, that contraband, that illegal goods aren’t being brought across the border, and that goods being brought in are being accurately accounted for, for purposes of duties and tariffs,” Scharf said.
The order comes as the Trump administration continues to pursue a trade agenda centred on tariffs, supply-chain security and domestic manufacturing. Since returning to the office, Trump has repeatedly argued that stronger trade enforcement is necessary to protect American industries from unfair competition.
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