On 3 June 2026, President Trump signed an Executive Order entitled “Strengthening Customs Enforcement.” The Order is the most significant structural reform of the US importer of record (IOR) framework since the Trade Act of 2002. Its effects reach well beyond US companies.
UK and EU exporters who act as their own IOR, who sell on DDP terms, or who rely on a foreign-entity distributor as IOR need to assess their position immediately. So do marketplace operators and B2B2C businesses where the IOR is a thin-entity intermediary.
This article sets out what the Order actually says, who is affected, and what needs to happen in the next 90 to 180 days.
What the Executive Order Does
The Order, issued under 19 U.S.C. 66, 1484, 1498, 1623, 1624 and 4320, directs the Secretary of Homeland Security to revise IOR eligibility regulations within 180 days. Most of the operative changes are mandatory — CBP has no discretion about whether to implement them, only about the precise thresholds and definitions.
The four structural changes are:
1. Foreign IOR informal entry prohibition
Foreign IORs will be prohibited from filing informal entries. Informal entry (under 19 U.S.C. 1498) is currently available for commercial shipments below the formal entry threshold. The Order removes this option for any non-US entity acting as IOR. The stated rationale is that foreign IORs face lower financial consequences for non-compliance and cannot be effectively pursued by US enforcement authorities.
2. Formal entry: continuous bond restriction and CTPAT requirement
For formal entries, foreign IORs will no longer be permitted to rely on continuous bonds, unless CBP is satisfied that revenue is fully protected and compliance assured. They must either hold CTPAT validation (Customs Trade Partnership Against Terrorism) or file through a CTPAT-validated licensed customs broker.
CTPAT validation for a UK or EU company is achievable in principle — the Importer category is open to foreign entities — but requires a structured application, a US-based point of contact, documented internal controls, and a site validation. The 180-day timeline is tight.
3. IOR good standing requirement
All IORs must maintain “good standing” with CBP based on compliance history, payment of customs liabilities, and enforcement record. IORs associated with fentanyl, nitazene, or other contraband importation lose the right to import, directly or through a broker. CBP will create risk-tiered IOR categories.
4. Heightened disclosure and certification
The Order introduces new mandatory disclosures: beneficial ownership, foreign tax identifiers, business affiliations, domestic asset position, anticipated import volumes, and detailed supply chain and production data (manufacturer product identifier, composition, grade, size). IORs must also certify compliance with CAATSA (Countering America’s Adversaries through Sanctions Act, Public Law 115-44) and other laws specified by CBP.
These disclosure requirements are subject to a 90-day implementation timeline — arriving before the IOR eligibility changes.
Who Is Affected
| Higher risk: act now |
| UK or EU companies currently acting as IOR for their own US imports |
| Exporters selling on DDP or DDP-equivalent Incoterms |
| Brands whose US distributor or importer is a foreign-registered entity |
| E-commerce operators or marketplaces with a foreign fulfilment/IOR structure |
| Any IOR relying on continuous bond arrangements for formal entry |
| Monitor closely |
| UK/EU companies selling to a US-based importer under EXW, FOB or CIF terms |
| Businesses with a US subsidiary acting as IOR — check domestic asset and disclosure requirements |
| Freight forwarders and 3PLs who file entries on behalf of foreign-entity clients |
The B2B2C Problem
B2B2C structures — where a UK or EU brand sells to a US distributor who sells on to end consumers — are exposed at the distributor tier. The question is whether that US distributor entity meets the new “good standing” standard, holds sufficient tangible domestic assets, and can satisfy the beneficial ownership and CAATSA certification requirements.
Thin-entity distributors, special purpose importers, and freight-forwarder-as-IOR arrangements are at particular risk. If the distributor fails the new tests, the supply chain loses its US import pathway until a compliant IOR is substituted.
For marketplace and platform operators, the position is more acute. Where low-value B2C orders are fulfilled from a non-US entity acting as IOR under informal entry, that model is directly targeted by the prohibition. The transition to formal entry through a US-based IOR or CTPAT-validated broker will materially increase cost per shipment.
Enforcement Priorities and Penalties
The Order identifies four enforcement priorities: forced labour, misclassification, undervaluation, and illegal transshipment. EAPA (Enforce and Protect Act) investigations and DOJ coordination are explicitly referenced.
The penalty regime hardens: a minimum penalty floor of 50% or more, no mitigation for repeat offenders, increased audit frequency, and maximum penalties for customs brokers who fail to conduct adequate due diligence on their IOR clients.
The Order also directs legislative recommendations to the President within 45 days. Statutory changes may follow the regulatory ones. This is not the final word.
The Timeline
| Deadline | Requirement |
| 45 days (by ~18 July 2026) | CBP and agencies submit legislative recommendations to the President |
| 90 days (by ~1 September 2026) | Heightened disclosure and certification requirements — CAATSA certification, foreign tax identifiers, supply chain data, manufacturer identifiers |
| 180 days (by ~30 November 2026) | Foreign IOR informal entry prohibition; continuous bond restriction; CTPAT or CTPAT-broker requirement; good standing standard; IOR registry update; enhanced vetting procedures |
What to Watch For
The CBP Cargo Systems Messaging Service (CSMS) will carry the operational instructions once the rulemaking is formally published. The Federal Register notices will define the precise thresholds for tangible domestic assets, the continuous bond exception criteria, and the CTPAT eligibility rules for foreign IORs. These details matter.
Before the rulemaking lands, companies can and should:
- Identify who acts as IOR for all US import streams
- Confirm whether that IOR is a US entity, a foreign entity, or a customs broker
- Review whether informal entry or continuous bonds are currently in use
- Map supply chain disclosure readiness against the new requirements
- Assess whether B2B2C distributor entities will meet the domestic assets and good standing tests
How ITM Can Help
International Trade Matters (ITM) offers a structured compliance engagement for UK and EU exporters affected by the new regime:
- Phase 1 — Diagnostic: IOR model mapping, entry method review, bonding analysis, disclosure gap assessment. Fixed fee. Deliverable: advisory note with exposure summary and structural options.
- Phase 2 — Structural Remediation: IOR transition to US entity or CTPAT-validated broker, Incoterms renegotiation support, IOR registry disclosure preparation, CAATSA and supply chain certification drafting.
- Phase 3 — Monitoring Retainer: CBP rulemaking tracking, good standing maintenance, annual IOR registry refresh.
Download the Advisory Note
The Executive Order introduces far-reaching changes to the US Importer of Record (IOR) framework, but the practical impact will depend on how your business currently structures its US imports. For customs managers, trade compliance professionals, logistics teams, finance functions and exporters selling into the US market, understanding the operational implications is critical.
Our detailed Advisory Note goes beyond the headline changes to provide a technical analysis of the new requirements, including foreign IOR restrictions, CTPAT obligations, disclosure and certification requirements, enforcement risks, and the likely impact on existing DDP, distributor and B2B2C supply chain models. It also outlines the structural options available to affected businesses and includes a prioritised action plan to help organisations assess risk, prepare for implementation and maintain compliance as the new regime takes effect.
Download the Advisory Note for a practical compliance-focused assessment of what these changes mean for your business and the actions you should be taking now.
To discuss your position, contact us at info@internationaltradematters.com or call +44 (0) 333 7722 565.
