IMPORTANT NOTICE TO IMPORTERS

Executive Order 14411 – Strengthening Customs Enforcement

Dear Clients:

On June 3, 2026, the President issued Executive Order 14411, “Strengthening Customs Enforcement,” directing the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to significantly strengthen the requirements, verification, and oversight applicable to Importers of Record (IORs).

It is important to distinguish between requirements that CBP is currently implementing or enforcing and additional measures directed by Executive Order 14411 that require further agency action, regulations, policies, guidance, or potentially legislative action before becoming enforceable requirements.

A. IMMEDIATE ACTION – CBP FORM 5106 ACCURACY

CBP has announced enhanced enforcement procedures to verify the accuracy of information provided by new and existing Importers of Record on CBP Form 5106.

Beginning September 18, 2026, CBP will begin enhanced enforcement, including the immediate voiding of IOR numbers when CBP determines that information provided on CBP Form 5106 is inaccurate or incomplete.

Therefore, all Importers of Record should immediately verify that the following information registered with CBP is accurate, complete, and current:

• Legal name of the importer.
• EIN/IRS number, SSN, or CBP-assigned importer number, as applicable.
• Mailing address.
• Actual physical location address, if different from the mailing address.
• Current telephone number belonging directly to the importer.
• Current email address belonging directly to the importer.
• Valid Power of Attorney (POA), when a customs broker submits information on behalf of the importer.

Importers should notify their customs broker immediately if any information currently registered with CBP is inaccurate or outdated.

B. ADDITIONAL REQUIREMENTS DIRECTED BY EO 14411 – FURTHER CBP/DHS IMPLEMENTATION REQUIRED

Executive Order 14411 directs DHS and CBP to develop and implement substantial additional requirements for Importers of Record.

These provisions should not be interpreted as requirements that automatically became fully operational merely because the Executive Order was signed.

Depending upon the particular requirement and existing statutory authority, implementation may require CBP/DHS to issue, amend, modify, or rescind regulations, policies, procedures, guidance, Federal Register notices, or other administrative requirements.

EO 14411 specifically provides that its implementation must be consistent with applicable law, including the Administrative Procedure Act (APA).

 Importer Financial Responsibility

EO 14411 directs DHS/CBP to establish requirements involving:

• Minimum levels of tangible domestic assets, customs bonding, or a combination of both.
• Increased minimum customs bond coverage.
• Bonding and/or sufficient tangible domestic assets for formal and informal entries.

Additional Importer Information

DHS/CBP is directed to develop additional importer information requirements that may include:

• Anticipated import volumes.
• Year the company was organized.
• Ownership information.
• Beneficial ownership information.
• Business affiliations.
• Domestic asset information.
• Other information CBP determines necessary.

Importer Eligibility and “Good Standing”

EO 14411 directs CBP to establish a requirement that all IORs maintain “good standing” with CBP.
CBP is directed to define good standing based upon factors including:

• The importer’s compliance history.
• Compliance history of affiliated entities.
• Payment of required customs liabilities.
• Enforcement history.
• Other relevant compliance considerations.

IORs ultimately determined not to be in good standing may be prohibited from importing merchandise or conducting activities directly related to importation.

CBP is also directed to establish enhanced and recurrent vetting procedures for Importers of Record and certain other participants in international trade.
 

Additional Supply-Chain Information

EO 14411 also directs DHS/CBP to establish heightened disclosure and certification requirements involving imported merchandise and supply chains, including additional information concerning manufacturers, products, composition, production methods, and certain foreign business information.
 

C. SPECIAL REQUIREMENTS DIRECTED AT FOREIGN IMPORTERS OF RECORD

EO 14411 directs DHS/CBP to establish additional requirements specifically applicable to Foreign Importers of Record (Foreign IORs).
These include:

• Prohibiting Foreign IORs from filing informal entries.
• Restricting the ability of Foreign IORs to rely upon continuous bonds for formal entries, except when permitted by CBP after determining that the revenue would be fully protected and compliance assured.
• Requiring a Foreign IOR to be CTPAT validated, if CBP determines it is eligible, or to use a CTPAT-validated U.S. Licensed Customs Broker to file its entries.
• Enhanced verification and oversight of Foreign IORs.

EO 14411 directs DHS to promptly issue, amend, modify, or rescind relevant regulations, policies, or guidance to implement these requirements.

Foreign IORs should therefore closely monitor forthcoming CBP/DHS implementation instructions and effective dates rather than assume that every provision became immediately operational upon issuance of the Executive Order.

 D. CLASSIFICATION AS A U.S. IOR OR FOREIGN IOR

Executive Order 14411 establishes specific definitions for determining whether an Importer of Record is considered a U.S. Importer of Record (U.S. IOR) or a Foreign Importer of Record (Foreign IOR).

U.S. IMPORTER OF RECORD (U.S. IOR)

For an individual:
An individual qualifies as a U.S. IOR if the individual is:

• A United States citizen; or
• A lawful permanent resident of the United States.

For a business entity:
Under EO 14411, an entity qualifies as a U.S. IOR if it:

• Is organized under the laws of the United States;
• Is located in the United States; and
• Has, at all times, controlling beneficial owner(s) who are United States citizens or lawful permanent residents.

EO 14411 also provides an alternative basis for an entity to qualify as a U.S. IOR if the entity owns a significant amount of real property in the United States, as determined by DHS.

What Does “Located in the United States” Mean?

EO 14411 directs DHS to provide additional guidance defining this term.
However, the Executive Order establishes that, at a minimum, an entity considered “located in the United States” must have:

1. Its principal place of business in the United States;
2. A physical presence in the United States where significant business activity is conducted; and
3. Sufficient tangible assets located in the United States, taking into account the size and scale of the company’s overall operations and whether the entity is an instrumentality of a foreign manufacturer without a substantial U.S. presence.

Therefore, merely establishing a U.S. corporation or LLC, obtaining an EIN, maintaining a registered agent, P.O. Box, or mailing address may not be sufficient for an entity to qualify as a U.S. IOR under EO 14411.

DHS has been specifically instructed to develop guidance intended to prevent the use of shell companies, sham transactions, or artificial corporate or organizational structures designed to improperly qualify an entity as a U.S. IOR.

K&K International Logistics, LLC will continue monitoring DHS and CBP implementation of Executive Order 14411 and will notify our clients as additional requirements, regulations, guidance, and effective dates are announced.
Sincerely,
K&K International Logistics, LLC
This notice is provided for general informational purposes and should not be construed as legal advice.

Copyright © 2015 K&K International Logistics, LLC, All rights reserved.
 Our mailing address is:
group@kk-intl.com

Our telephone number is:
(520) 287-3550

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