Executive Order Bars Foreign Importers From Informal U.S. Customs Entry

A June 3 executive order directs federal agencies to bar foreign importers of record from using informal customs entry for shipments into the United States. It also instructs regulators to define a U.S. importer in a way that prevents foreign sellers from relying on shell companies that exist only on paper.

Background on importer of record practices Every shipment entering the United States lists an importer of record responsible for duties, declarations, and compliance. Informal entry, or Type 11, previously allowed lighter paperwork and no bond, a route used heavily for low-value parcels from overseas.

Foreign sellers or carriers have used either a foreign importer of record or a thin U.S. entity to file these informal entries at scale. When declarations later proved inaccurate, locating a responsible party inside the country was often difficult.

Implementation timeline and compliance steps The executive order gives agencies 180 days to rewrite the relevant rules. Brands that currently rely on a foreign importer of record or a shell company are advised to switch to a legitimate U.S. importer or a licensed U.S. customs broker.

Carriers handling freight must also maintain compliance across the supply chain, since the order applies to the party listed on customs paperwork regardless of price advantages that once came from non-compliant arrangements.