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The U.S. is preparing to install new restrictions for foreign importers while establishing higher penalty floors for those noncompliant with customs regulations, according to an executive order signed on June 3 by President Donald Trump.
The order could introduce complications for overseas brands and shippers without an adequate level of supply chain visibility, experts told Supply Chain Dive. For example, importers must provide ownership disclosures, anticipated volumes and production methods, and customs brokers must "conduct greater due diligence of their importers," U.S. Customs and Border Protection said in a news release.
“This Executive Order helps CBP better detect when bad trade actors try to break the rules,” Susan Thomas, executive assistant commissioner for the CBP's Office of Trade, said in the release. “These are major advances in protecting our revenue and increasing supply chain transparency—both critical to ensuring fairness for everyone and safeguarding our nation’s economic and national security.”
The changes, which are set to take effect within 180 days of the order, add to the risks importers face for non-compliance, according to Rathna Sharad, CEO and founder of FlavorCloud, a cross-border shipping platform.
