U.S. President Donald Trump signed an Executive Order on June 3 aimed at strengthening customs enforcement and increasing oversight of international supply chains.
The Executive Order is intended to improve compliance with federal laws, enhance national security protections, and address issues such as forced labor and supply chain transparency. It directs the U.S. Department of Homeland Security (DHS) and Customs and Border Protection (CBP) to strengthen importer verification, increase enforcement actions, and expand scrutiny of foreign importers.
“Importing into the U.S. has for too long been treated as a right and not a privilege,” said CBP Commissioner Rodney Scott. “CBP will execute the priorities in this Executive Order and by doing so we will fortify our trading border just as we have done with our physical border.”
The EO aims to ensure that importers of record correctly document what they are bringing in and to prevent them from using shell companies and schemes that hide the true country of origin of the goods. Among the measures outlined in the order are expanded importer disclosure requirements, increased bond obligations, and stricter vetting procedures.
The Canadian Trucking Alliance (CTA) said it is currently examining the order, but the full implications for Canadian trucking companies remain unclear.
“CTA is currently examining the EO and consulting with industry stakeholders and legal counsel to better understand its potential impact on Canadian motor carriers, shippers, customs brokers, and other supply chain participants,” the organization said in a statement. “The Alliance will continue to monitor developments closely and will provide members with further analysis and guidance as additional information becomes available.”
The U.S. federal agencies must now develop the regulations and implementation plans required under the EO. Many are expected to be subject to public comment before being implemented.
“The practical message is that the cost and complexity of being an importer — not merely the cost of the goods — is about to rise,” law firm ArentFox Schiff wrote in a blog post.
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