At a glance
- A new Executive Order signals stronger U.S. customs enforcement.
- Canadian non-resident importers may face increased regulatory scrutiny.
- U.S. Customs and Border Protection is expected to focus on key import compliance issues.
- Customs documentation and reporting practices may be examined.
- Businesses should evaluate potential areas of customs risk.
On June 3, 2026, President Trump signed an Executive Order directing U.S. Customs and Border Protection (CBP) and other federal agencies to strengthen customs enforcement efforts.
While the order does not impose new tariffs, it signals increased scrutiny of import compliance and importer accountability. For Canadian businesses that act as non-resident importers (NRIs) into the United States, the order serves as a clear indication that customs enforcement activity is likely to increase.
Many Canadian exporters sell goods into the United States on a delivered-duty-paid (DDP) basis and act as the U.S. importer of record. These businesses should expect greater attention from CBP on customs valuation, tariff classification, country of origin determinations, duty payments, and supporting documentation.
Increased focus on non-resident importers
The Executive Order reflects growing U.S. concern regarding importer accountability and the government's ability to assess and collect duties, penalties, and other customs obligations.
Although the order does not change the rules governing non-resident importers, it comes amid broader efforts to strengthen customs enforcement and close perceived compliance gaps. Recent legislative proposals, including the proposed SAFE Act, have similarly focused on importer of record requirements and enforcement mechanisms involving foreign-resident importers.
As a result, Canadian exporters acting as NRIs may encounter:
- Increased requests for supporting documentation
- More customs inquiries and compliance reviews
- Higher customs bond requirements
- Greater scrutiny of importer-of-record arrangements
- Increased audit and enforcement activity
Enforcement priorities
The Executive Order directs U.S. agencies to increase enforcement against customs fraud, duty evasion, and other practices that reduce U.S. duty collections.
Among other areas, CBP is expected to focus on:
- Misclassification of imported goods
- Undervaluation of merchandise
- False country of origin declarations
- Transshipment used to avoid tariffs
- Evasion of Section 232 and other trade measures
- Importers with inadequate compliance controls or supporting documentation
As duty rates have increased over the past two years, customs compliance has become a growing enforcement priority. Importers should expect CBP to devote additional resources to audits, reviews, and enforcement actions where deficiencies are identified.
Importantly, the Executive Order is separate from the Administration's recently proposed Section 301 tariffs related to forced labour enforcement. Those proposed measures, which could impose tariffs of 10% to 12.5% on imports from numerous U.S. trading partners, remain subject to a separate review and consultation process. While both initiatives reflect a broader U.S. focus on trade enforcement, the Executive Order itself does not impose additional tariff rates.
Why Canadian exporters should pay attention
Many Canadian businesses have adjusted sourcing arrangements, supply chains, and customs processes in response to evolving U.S. tariff measures. Those changes may now face greater scrutiny from CBP.
Companies should review:
- Tariff classification methodologies
- Customs valuation practices
- Country of origin determinations
- Importer-of-record structures
- Section 232 exposure and mitigation strategies
- Supporting documentation and recordkeeping practices
Businesses relying on tariff mitigation strategies should ensure those positions are well-supported and capable of withstanding customs review.
The Executive Order does not create new compliance requirements. However, it signals that CBP intends to take a more aggressive approach to enforcement. For Canadian exporters acting as non-resident importers, now is an appropriate time to review customs compliance procedures and identify potential areas of risk before they become the subject of an audit or enforcement action.
Helping you prepare for heightened customs scrutiny
BDO's Customs and International Trade team can assist businesses with customs compliance reviews, non-resident importer assessments, origin and valuation analyses, tariff exposure reviews, and audit preparedness. As enforcement activity increases, proactive reviews can help identify and address potential issues before they result in assessments, penalties, or business disruption.
The information in this publication is current as of June 4, 2026.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.