What the New Customs Enforcement Executive Order Means for Your Business and Immigration Status

TLDR: On June 3, 2026, President Trump signed an executive order titled “Strengthening Customs Enforcement.” The order overhauls how the federal government regulates who can import goods into the United States. While it is primarily a trade and customs reform, not an immigration measure, it has real and immediate implications for foreign nationals, lawful permanent residents (LPRs), and businesses that rely on foreign supply chains or employ people in immigration-dependent status.

Here’s what you need to know right now:

• The order creates two distinct categories of importers: “U.S. IORs” and “foreign IORs,” with foreign importers facing stricter rules, higher bond requirements, and new vetting procedures.
• Only U.S. citizens and lawful permanent residents (green card holders) qualify as “U.S. IORs” for purposes of the informal entry process.
• Foreign IORs are now prohibited from filing informal entry and face heightened requirements for formal entry, including mandatory CTPAT validation or use of a CTPAT-validated broker.
• Most changes will be implemented through rulemaking over the next 90–180 days, meaning affected businesses will have an opportunity to adjust, but the clock is already ticking.
• If your business imports goods or relies on foreign ownership, supply chains, or workforce, this order warrants a close look with qualified legal counsel.

The U.S. Immigration and Trade Legal Environment Is More Complex Than Ever

Let’s be honest: U.S. immigration law was already hard enough to navigate. Now, the federal government is layering comprehensive customs and trade enforcement reform on top of it, and the two systems are more connected than most people realize.

On June 3, 2026, President Trump signed an executive order directing the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to overhaul the way goods are imported into the United States. The stated goal: crack down on duty evasion, protect national security, and restore integrity to the customs system.

But buried inside the fine print of that order are definitions and requirements that directly affect foreign nationals, green card holders, and the businesses that employ them. If you or your company imports goods, or if your organization’s ownership, operations, or workforce touches the immigration system in any way, this executive order is relevant to you.

What the Executive Order Actually Does

The “Strengthening Customs Enforcement” executive order is sweeping in its scope. It directs multiple federal agencies to take action across six major areas within 90 to 180 days of the order’s signing.

1. Importer of Record (IOR) Reform

This is the most immigration-relevant piece of the order. An Importer of Record (IOR) is the individual or business entity legally responsible for ensuring that imported goods comply with U.S. law and that applicable duties are paid.

The order draws a sharp line between two categories:

• S. IOR: An individual who is a U.S. citizen or lawful permanent resident, OR an entity organized under U.S. law, located in the United States, with controlling beneficial owners who are U.S. citizens or LPRs, and with significant real property in the U.S.
• Foreign IOR: Anyone who does not meet the above criteria.

The distinction matters a lot. Foreign IORs will now face a significantly different (and more burdensome) set of requirements than their U.S. counterparts.

2. Restrictions on Informal Entry for Foreign IORs

Previously, importers could bring in lower-value goods through a simplified “informal entry” process. Under this order, foreign IORs are prohibited from using informal entry. Full stop.

The administration’s reasoning: foreign IORs are harder to penalize for noncompliance because their assets, operations, and key personnel are located outside the U.S. This prohibition, the order states, puts all importers “on equal footing,” though in practice, it places a significant new burden on foreign-owned or foreign-operated businesses.

3. Heightened Requirements for Formal Entry by Foreign IORs

For formal entry (the more rigorous process for higher-value imports), foreign IORs will now be required to:

• Obtain validation through CBP’s Customs-Trade Partnership Against Terrorism (CTPAT) program, OR use a CTPAT-validated and licensed customs broker to file entries.
• Forgo the use of continuous bonds (used by many importers to cover multiple shipments over time), unless CBP determines revenue is fully protected.

4. New “Good Standing” Requirement

Within 180 days, all IORs (U.S. and foreign alike) must maintain “good standing” with CBP. IORs found to have illegally imported fentanyl, other illicit substances, or contraband will be disqualified from importing altogether, including through customs brokers acting on their behalf.

5. Heightened Disclosure and Certification

The order directs CBP to require more detailed documentation from importers, including supply chain production information, foreign tax identifiers, beneficial ownership disclosures, and certifications related to forced labor compliance laws.

6. Stronger Penalties and Enforcement

CBP’s ability to reduce assessed penalties is being curtailed. A minimum penalty floor of 50% of the assessed penalty is being established, meaning importers who violate customs law can expect far less flexibility from CBP in settlement negotiations. Repeat offenders will be ineligible for mitigation entirely.

Why Immigration Attorneys Are Paying Attention to a Customs Order

On the surface, this looks like a trade law story. So why should someone working with an immigration attorney care?

Because the definition of “U.S. IOR” is tied directly to immigration status.

A business entity qualifies as a U.S. IOR only if its controlling beneficial owners are U.S. citizens or lawful permanent residents. That means:

• A company whose majority owners are on H-1B visas, E-2 investor visas, L-1 intracompany transferee visas, or other nonimmigrant status does NOT qualify as a U.S. IOR under this order.
• A foreign entrepreneur who has invested heavily in a U.S. business but has not yet obtained a green card may find their company reclassified as a “foreign IOR” with all the new burdens that entails.
• Businesses in the process of sponsoring employees or ownership for immigration benefits should be aware that the timing of status upgrades, including green card approvals, could have direct operational consequences under this framework.

Additionally, the order’s emphasis on enhanced vetting, beneficial ownership disclosures, and supply chain transparency means that businesses with international ownership structures will face greater scrutiny, and potentially more entanglement with both CBP and USCIS simultaneously.

Nobody should have to figure this out alone. The intersection of customs compliance and immigration status is exactly the kind of complex, overlapping challenge that requires experienced legal guidance.

New Timelines: When Do These Changes Take Effect?

One important note from the White House fact sheet: most of these changes will NOT take effect immediately. DHS and CBP are directed to implement them through standard rulemaking, which means affected parties will have notice-and-comment opportunities before final rules go into effect.

Here is the timeline the order establishes:

• Within 45 days (by approximately July 18, 2026): DHS must submit recommendations for legislation to strengthen customs enforcement.
• Within 90 days (by approximately September 1, 2026): CBP must establish new disclosure and certification requirements; begin enhanced seizure and disposal procedures; revise mitigation standards including the 50% penalty floor; and enhance transparency practices.
• Within 180 days (by approximately December 1, 2026): DHS must revise IOR eligibility regulations; impose the “good standing” requirement; update the IOR registry; and establish enhanced vetting procedures.
• Within 1 year (by June 3, 2027): DHS must report to the President on the effectiveness of the order’s reforms.

Businesses have a window to prepare, but the rulemaking process can move quickly. Waiting to assess your compliance posture is not a strategy.

What Businesses and Foreign Nationals Should Do Now

The U.S. immigration and trade legal process is overwhelming and complex, and this executive order adds another layer to an already difficult landscape. But preparation is possible, and the right guidance makes all the difference.

If you or your business falls into any of these categories, now is the time to consult with legal counsel:

• You operate a business that imports goods into the United States, and one or more controlling owners are not U.S. citizens or lawful permanent residents.
• You are a foreign national currently in nonimmigrant visa status (H-1B, L-1, E-2, O-1, etc.) who has ownership or operational control over an importing business.
• You are in the process of pursuing a green card and your business relies on importing goods, since obtaining LPR status could change your company’s IOR classification.
• Your business uses a foreign entity as the importer of record for U.S. shipments.
• You operate in supply chains that involve goods from high-scrutiny countries or industries flagged by CBP for forced labor compliance concerns.

Berardi Immigration Law will prepare and file your case for you, from understanding your current immigration and compliance posture, to identifying what changes may be needed as these new rules go into effect.

Don’t Wait for the Rules to Catch Up With You

This executive order represents one of the most significant overhauls to U.S. customs enforcement in recent memory. And because it ties importer eligibility directly to citizenship and immigration status, it creates a new and often overlooked intersection between trade compliance and immigration law.

The good news: the rulemaking process means you have time to understand and prepare. The not-so-good news: that window will close, and the new landscape will be significantly more demanding for foreign importers and businesses with international ownership.

At Berardi Immigration Law, we have been helping individuals and businesses navigate the U.S. immigration system for decades. We understand that the stakes are high, not just for your legal status, but for your livelihood, your business, and your future here in the United States.

If you have questions about how this executive order may affect your immigration status or your business’s import operations, contact our team today.

Frequently Asked Questions

Q: I have an E-2 investor visa and my company imports goods from overseas. Am I affected by this order?

Possibly, yes. The order’s definition of a “U.S. IOR” requires that controlling beneficial owners of the entity be U.S. citizens or lawful permanent residents. If you are on an E-2 visa (a nonimmigrant status) your company may be classified as a “foreign IOR” under this framework, which comes with new restrictions and requirements. If you are currently in the process of pursuing a green card or U.S. citizenship, the timing of those applications could have direct business implications. Speak with an immigration attorney to assess your specific situation.

Q: I am a lawful permanent resident (green card holder). Does this order treat me the same as a U.S. citizen for customs purposes?

Yes, for purposes of this order’s “U.S. IOR” definition, lawful permanent residents (green card holders) are treated the same as U.S. citizens. If you are an LPR who controls a U.S.-based entity that imports goods, your company can qualify as a U.S. IOR, provided the other requirements are met (U.S. organization, U.S. location, and significant U.S. real property). That said, the order’s full implementing regulations have not yet been issued, so it is worth confirming your specific situation with both immigration and trade counsel.

Q: My company uses a foreign entity as the importer of record. Do we need to change that arrangement?

Under this executive order, yes, likely. Foreign IORs will be prohibited from filing informal entry and will face significantly higher requirements for formal entry, including CTPAT validation and stricter bonding requirements. Depending on the volume and value of your imports, the compliance costs could be substantial. If your current logistics or import structure relies on a foreign IOR, now is the time to review that arrangement with qualified legal and compliance counsel before the implementing regulations finalize.