Executive Order 14411 Summary

This executive order directs the Department of Homeland Security and U.S. Customs and Border Protection to significantly tighten customs enforcement and oversight of importers.

Main measures

• Stricter importer requirements: Importers of record must maintain sufficient U.S.-based assets, bonds, ownership disclosures, business information, and import-volume data.
• Greater restrictions on foreign importers: Foreign importers would generally be barred from using informal entry procedures for low-value shipments. Formal entries would require stronger financial guarantees and, in some cases, participation in the Customs Trade Partnership Against Terrorism program or use of an approved broker.
• Importer “good standing”: CBP must establish a compliance-based status system. Importers involved in illegal drug or contraband shipments, unpaid customs liabilities, or other violations could lose the ability to import.
• Enhanced vetting and registration: CBP must update its importer registry, remove inactive entities, create risk-based categories, and repeatedly vet importers, brokers, freight forwarders, and other trade participants.
• More disclosure requirements: Importers must provide detailed supply-chain, manufacturing, product, tax, and business-identification information. Foreign exporters may also need to submit documents filed with their own customs authorities.
• Stronger enforcement and penalties: The order calls for more audits, stricter broker accountability, enforcement against forced labor, misclassification, undervaluation, and illegal transshipment, along with higher penalties and reduced mitigation for repeat offenders.
• Faster seizure and disposal: CBP should streamline the seizure, abandonment, and disposal of noncompliant goods, while increasing bond requirements for high-risk shipments.
• Greater transparency: The government must review confidentiality claims and publish annual customs-enforcement reports.
• Legislative recommendations: DHS must submit proposed legislation to strengthen customs enforcement within 45 days, followed by a report assessing the order’s effectiveness within one year.

Overall, the order aims to protect U.S. revenue, national security, consumers, and domestic businesses by making importers more accountable and increasing enforcement against customs violations. Many provisions require new regulations or agency action and must comply with existing law and the Administrative Procedure Act.