If you've been following the news from Washington lately, you already know that things are getting complicated for anyone bringing goods into the United States. On June 3, President Trump signed Executive Order 14411, "Strengthening Customs Enforcement," and it's fair to say the industry is feeling a little rattled.
The order gives the Department of Homeland Security and U.S. Customs and Border Protection 180 days to tighten importer eligibility, expand disclosure requirements, and crank up the penalties for non-compliance. Importers of record now face a laundry list of new obligations: disclosing ownership details, business affiliations, anticipated import volumes, production methods, foreign tax identifiers, and supply chain compliance certifications. On top of all that, they'll need to maintain "good standing" with CBP – and if they don't, they could lose their importing privileges entirely.
For customs brokers, the pressure is on too. The order explicitly calls for brokers to "conduct greater due diligence of their importers," with maximum penalties for those who fail to do so.
One of the biggest headaches? Foreign importers of record are getting hit especially hard. The new rules will prohibit foreign IORs from filing informal entries – a move that clearly targets low-value e-commerce shipments. They'll also face stricter conditions on formal entries, limits on continuous bonds, and may be required to get CTPAT-validated or work with a CTPAT-validated customs broker.
The "Shell Company" Question Everyone's Asking
Here's the part that's really got people worried. Under the new framework, importers need a physical presence in the U.S. and "a minimum level of tangible domestic assets" – or a bond. But what exactly does that mean?
As William Jansen, director of customs brokerage services at Seko Logistics, put it: "We have a lot of business with foreign IORs that are based in Australia. They don't have significant assets in the US. Are they going to be considered a shell company?"
Nobody knows yet. The DHS still needs to issue guidance on what "located in the United States" actually means. Until then, importers and brokers are stuck in limbo – trying to prepare for rules that haven't been fully written.
And the financial stakes are real. The order directs CBP to establish a minimum penalty floor of at least 50% of the assessed penalty, with reduced flexibility for mitigation. For small and mid-sized importers, the cost of compliance – and the potential cost of getting it wrong – could be crippling.
Where This Gets Tricky
Let's talk about what this actually means on the ground. When CBP suspects forced labor in a supply chain, they can stop shipments for weeks or even months while they investigate. Bob Imbriani from forwarder Team Worldwide recalled one case where a shipment was held so long that the demurrage bill hit $70,000.
Then there's the e-commerce angle. The elimination of informal entry capabilities for foreign IORs means low-value shipments that used to move through a streamlined process will now require continuous bonds and face slower clearances. For businesses built on speed and volume, that's a major disruption.
So What's the Way Forward?
Here's where having the right logistics partner makes all the difference.
At Xiamen AE Global (XMA Logistics), we've been navigating complex customs environments since day one. We're a government-licensed freight forwarder with IATA, FIATA, FMC, and NVOCC approvals – credentials that matter more than ever when CBP is scrutinizing every entry.
Our team has over a decade of experience in the freight forwarding and logistics industry. We specialize in moving cargo out of all major Chinese ports – Xiamen, Shanghai, Ningbo, Shenzhen – and getting it to your door in the U.S.. Whether it's sea freight, air freight, or rail, we handle the full spectrum: customs clearance, warehousing, consolidation, and project cargo.
What sets us apart is our approach to compliance. We don't treat it as a box to check – we treat it as a value proposition. In an environment where disclosure requirements are expanding and penalties are rising, having a partner who knows the rules inside and out isn't a luxury. It's survival.
We operate our own consolidation warehouse in Xiamen, giving us direct control over cargo handling and documentation accuracy. We file AMS/ISF, handle import and export declarations, and manage U.S. bond requirements. When new disclosure rules kick in, we'll be ready – because we've already built the systems and relationships to handle complex compliance demands.
The Bottom Line
The new customs enforcement order is a game-changer. For businesses that aren't prepared, it's going to mean delays, unexpected costs, and potentially losing the ability to import altogether. But for those who work with experienced, licensed logistics providers who understand both sides of the Pacific, it's an opportunity to pull ahead of the competition.
At XMA Logistics, we're already helping our clients navigate these uncertain waters. We provide real-time visibility through our online platform, proactive updates on regulatory changes, and on-the-ground expertise that turns complexity into clarity.
The rules are changing. But with the right partner, your supply chain doesn't have to suffer.
Ready to simplify your U.S. imports? Visit xmaelogistics.com or contact our team for a personalized consultation.
