From the Oval Office to Importers: More Data from Affiliated Businesses. Lower Penalty Mitigation
In this episode of Five Questions, Five Answers, Birgit Matthiesen, David Hamill, James Kim, and Antonio J. Rivera break down the June 3, executive order, Strengthening Customs Enforcement — not a tariff, but potentially one of the year’s most consequential trade actions for US importers.
They cover the order’s expanded disclosure demands, its 90-day overhaul of the US Customs and Border Protection’s (CBP) penalty-mitigation framework, and CBP’s hard-edged enforcement posture — and explain why a proactive review of import processes can turn the disruption into a competitive edge in 2026.
Takeaways
It is not a tariff — but Strengthening Customs Enforcement may be the year’s most consequential trade action for US importers.
Executive orders carry the full force of law, and CBP “stands ready to enforce,” now treating importing as “a privilege, not a right.”
Expect to disclose far more — foreign tax and business identifiers, affiliated partners, and supply-chain and product detail (composition, grade, size).
CBP’s mitigation framework gets a 90-day overhaul: a penalty floor of at least 50% for national-security violations, and no mitigation for repeat offenders.
Brokers face more audits and maximum penalties for weak due diligence or non-cooperation.
Reassess voluntary disclosures now — and review procurement, classification, and valuation to build resilience.
