The presidential decree “Strengthening Customs Enforcement” of 3 June 2026 reforms the customs system with the aim of strengthening national security, combating fraud and duty evasion, and increasing the traceability and transparency of imports.
The Foreign Importer, or Foreign IOR, is a mechanism that allows a foreign company to import goods into the US without having to set up a branch or subsidiary there, as is often the case with DDP shipments.
In the context of this Executive Order, Foreign IORs are identified as a risk group due to their frequent use in opaque structures, the undervaluation of goods, and the evasion of duties or liabilities, etc.
The Foreign IOR is shifting from a relatively permissive model to one based on:
- actual economic presence in the US,
- full transparency,
- direct financial responsibility,
- and ongoing monitoring by CBP (Customs & Border Protection)
In practice, this may lead to this structure no longer being used for certain commercial transactions with the United States, and/or to an increase in the number of new companies with a presence or base in the US.
More specifically, these are the changes affecting Foreign IORs:
- They will no longer be able to use ‘informal entry’ procedures; a ‘formal entry’ must be made to bring them into line with US IORs
- The levels of the required bonds will increase
- There may be a requirement to hold tangible assets in the US
- Commitment to report on the expected volume of imports
In conclusion, the decree significantly tightens the conditions for Foreign Importers of Record, limiting their use and encouraging foreign companies to establish a physical presence in the US in order to operate with greater transparency and accountability and to bring them into line with US IORs.
Source: Strengthening Customs Enforcement – The White House
*This article has been automatically translated from its Spanish version.
