US President Donald Trump on 4 June 2025 signed a sweeping executive order to overhaul customs enforcement, imposing stricter requirements on foreign importers and cracking down on tariff evasion, forced labour imports and supply-chain fraud. The move signals tougher oversight for companies shipping goods into the United States and forms a central pillar of the administration's trade enforcement push.

What the order mandates

The order directs federal agencies to revamp customs procedures, expand importer disclosures, strengthen audits and penalties, and close what the administration called longstanding loopholes that let firms dodge duties, mask 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the executive order states, adding that “systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade Federal law.”

Stricter rules for importers of record

The Department of Homeland Security has been directed to revise importer eligibility rules within 180 days. Changes include higher bond coverage, expanded ownership disclosures and additional information on import volumes, business affiliations and domestic assets.

Foreign importers face sharper scrutiny, with the administration arguing they pose unique enforcement challenges because assets and key personnel sit overseas. The order bars foreign importers from certain informal entry procedures and layers additional conditions on formal entries.

'Good standing' and fentanyl crackdown

A new “good standing” requirement means companies found to have illegally imported fentanyl, precursor chemicals or other contraband could lose the right to import into the US. Customs brokers and freight forwarders will also face enhanced vetting, with risk-based compliance tiers built on enforcement history and audit outcomes.

US Customs and Border Protection Commissioner Rodney Scott, speaking at the White House before the signing, said the administration was extending its border security playbook to trade. “This is literally taking the same principles and applying them to trade to protect American industry,” Scott said, adding that countries and actors “undercutting” US import-export rules and tariffs would be stopped.

Revenue projections and trade fraud

Trump's trade advisor Peter Navarro claimed the initiative would generate significant revenue. “What we're going to do here with the EO… that's about a $20 billion to $30 billion a year EO you're going to get,” Navarro said, adding the focus would be on fentanyl, unhealthy products, counterfeits and tariff evaders.

The order also prioritises enforcement against forced labour imports, illegal transhipment, undervaluation and misclassification of goods, while expediting seizure and disposal of non-compliant shipments. Within 90 days, foreign exporters will be required to file documentation with their own customs authorities before shipping to the US.

Why it matters

White House Staff Secretary Will Scharf said the order was designed to ensure importers accurately report goods and properly account for duties. The directive comes as Trump's second-term trade agenda leans heavily on tariffs, supply-chain security and a revival of domestic manufacturing — a continuation of arguments he has made since returning to office about shielding American industries from unfair competition.

For exporters in India, China and other major trading partners, the tighter compliance regime could mean higher documentation costs, longer clearance timelines and greater legal exposure in the months ahead.