President Donald Trump signed two executive orders on Wednesday, establishing a comprehensive customs enforcement framework through the Department of Homeland Security and Customs and Border Protection. According to the latest White House fact sheet, the customs order directs CBP officers to use advanced technology to ensure contraband and illegal goods are detected and blocked from entering the US, with products accurately accounted for. The order specifically targets shell companies, insufficient customs bond requirements, and schemes that route shipments through third countries to hide true origin, addressing what CBP Chief of Staff James Kernochan described as many years of front-line officers and trade professionals seeing the tricks and abuse that companies have been using to cheat the system. As White House trade adviser Peter Navarro explained during the signing, the order is designed to provide CBP with real-time tracking capabilities to process billions of data points and determine with high probability whether there's tariff evasion or other problems. Speaking at the White House before signing the order, US Customs and Border Protection Commissioner Rodney Scott emphasized that the administration was extending its border security approach to trade enforcement, stating "This is literally taking the same principles and applying them to trade to protect American industry."
The customs order introduces comprehensive reforms for importers of record (IORs) through stricter bonding requirements and enhanced vetting procedures. The policy requires IORs to maintain at all times a minimum level of tangible domestic assets, bonding, or both, subjects foreign IORs to heightened requirements for formal entry, and imposes a 'good standing' requirement on all IORs. Foreign importers would face prohibitions or heightened requirements for informal entries and must use validated brokers or programs such as Customs Trade Partnership Against Terrorism (CTPAT) for formal entries. The order mandates a minimum 50% penalty floor for violations, expedited seizure and disposal of noncompliant goods, and annual enforcement transparency reports. Among the specific changes, the order requires the Department of Homeland Security to revise importer eligibility rules within 180 days, implementing stricter requirements including higher bond coverage, expanded ownership disclosures and additional information on import volumes, business affiliations and domestic assets. The policy establishes disclosure and certification requirements designed to combat duty evasion and noncompliance with supply chain rules, with officials developing the ability to track every single ship and shipment that leaves every single port every day and process billions of data points.
The executive order significantly enhances customs enforcement through the deployment of artificial intelligence technology to combat import fraud. The order increases the use of artificial intelligence by customs authorities to detect and prevent contraband entry, with White House trade adviser Peter Navarro telling reporters that the process will allow real-time tracking of every ship and shipment leaving every port daily, processing billions of data bits to determine with high probability whether tariff evasion or other problems like drugs and illegal contraband exist. The policy 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. 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 specifically addresses examples of noncompliance including undervaluing imports, withholding critical information about IORs and the goods being imported, and avoiding duty payments through various arrangements and schemes.
The comprehensive customs enforcement order won't take effect immediately, with many rule changes being developed through stakeholder input across the trade industry. As reported by CBP's Kernochan, there are sub-components to this executive order and a lot of regulation that's going to be fleshed out in the next few months. The reforms will be implemented through the standard rulemaking process, meaning affected parties will have a meaningful opportunity to adjust operations if needed. Other changes will require legislative changes, and those proposals are being teed up over the next 45 days, according to CBP's Kernochan. The order requires foreign exporters to provide documentation to their own customs authorities before exporting goods to the United States within 90 days. Trump's trade advisor Peter Navarro projected substantial revenue generation from the initiative, stating "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." The order represents Trump's latest move to ramp up protectionist trade policies after his global duties were struck down by the Supreme Court, building on previous measures including the suspension of the de minimis loophole and the One Big Beautiful Bill Act that permanently repealed the statutory basis for the de minimis exemption worldwide, effective July 1, 2027.
Alongside the customs enforcement order, Trump signed an executive order implementing and expanding Schedule Policy/Career positions, originally envisioned in his first term. The measure reclassifies roughly 8,000 senior career positions into a new "Schedule Policy/Career" category in the excepted service, making it easier to remove employees for poor performance or misconduct. As a Domestic Policy Council official explained at the signing, "What this does is basically treats those employees like private sector workers. They can be hired on the basis of merit and confidence, but if they're messing up, then they can be removed quickly rather than taking a year or longer to get rid of them." The White House frames these changes as addressing what it considers a broken system where lengthy removal procedures shield poor performers and those viewed as resistant to presidential priorities, citing surveys showing low confidence among supervisors in disciplining subordinates. The administration noted the changes build on earlier workforce optimization efforts, including buyouts that have reduced the federal workforce to its lowest level since 1966.
