AUGUST 28, 2026
STATEMENT:
Thank you for the opportunity to provide the perspective of the American Association of Exporters and Importers (AAEI) on the Executive Order on customs enforcement.
AAEI supports the Administration’s objective of strengthening customs enforcement, protecting U.S. revenue, and preventing illicit actors from exploiting the U.S. customs system. The Executive Order appropriately recognizes that effective enforcement is essential to national security and the U.S. economy. It also calls for greater transparency, modernization, and risk-based enforcement.
Our message today is straightforward: stronger enforcement and legitimate trade are not competing objectives. A well-designed, risk-based system can accomplish both.
We encourage CBP to focus its greatest enforcement resources on companies that deliberately evade the law, repeatedly fail to maintain adequate compliance controls, or engage in fraudulent or illicit activity, while avoiding unnecessary burdens on compliant importers.
First, CBP should establish a clear due process for importer eligibility and 5106 information.
The Executive Order directs CBP to require additional importer information, including ownership, beneficial ownership, business affiliations, anticipated import volumes, and domestic assets. It also calls for CBP to confirm that active importers are compliant and to establish risk-based tiers.
AAEI supports accurate importer information. But an incomplete or inaccurate 5106 should not automatically be treated as intentional misconduct.
Importers should receive notice of the specific deficiency, an opportunity to correct good-faith errors, and a meaningful process to challenge an adverse determination before losing the ability to import. CBP should distinguish between an isolated administrative error, negligent or repeated noncompliance, and deliberate misrepresentation.
Similarly, when CBP determines that an importer is not in “good standing,” the importer should have sufficient information about the basis for that determination to meaningfully respond.
We recognize that CBP must protect sensitive law-enforcement and national-security information, but confidentiality should not eliminate fundamental procedural fairness.
Second, CBP should make the risk-based system truly risk-based.
The Executive Order specifically calls for risk-based importer tiers based on compliance history, enforcement actions, and audit results.
This is an important opportunity.
A company with a long history of compliance, strong internal controls, successful audits, and participation in trusted-trader programs should not be treated in the same manner as a repeat offender.
AAEI encourages CBP to develop transparent and objective criteria for risk tiers and good standing. Compliance history should matter. An isolated error should not erase years of demonstrated compliance, while repeated violations should carry meaningful consequences.
Third, implementation should avoid disproportionate costs, particularly for small and medium-sized businesses.
The Executive Order establishes additional requirements for foreign importers, including circumstances in which they may be required to use a CTPAT-validated and licensed customs broker.
AAEI understands the rationale for ensuring that CBP can effectively enforce customs laws against foreign entities. However, new requirements should not unintentionally create barriers to lawful trade.
Small and medium-sized businesses may not have the resources of multinational corporations. If compliance requirements effectively require them to purchase premium brokerage services or create costly new infrastructure, the result could be a significant and disproportionate burden.
CBP should therefore establish clear minimum requirements, provide reasonable transition periods, and consider alternative ways for compliant companies to demonstrate their ability to meet the requirements.
Fourth, CBP should recognize compliance that has already been demonstrated.
The Executive Order provides an opportunity to make greater use of CTPAT and international trusted-trader programs.
CBP should leverage its mutual recognition arrangements with foreign customs administrations and consider companies that have been validated as Authorized Economic Operators or equivalent trusted traders.
These programs provide CBP with valuable information about companies that have already demonstrated supply-chain security and compliance. Using that information can help CBP distinguish legitimate businesses from illicit traders while avoiding duplicative compliance requirements.
Finally, AAEI believes transparency must be central to implementation.
The Executive Order itself directs CBP to enhance transparency in customs enforcement.
Importers need to understand the rules, how their compliance is evaluated, and what they can do when CBP identifies a deficiency.
The objective should not simply be to create more requirements. It should be to create a customs system where bad actors face greater scrutiny and meaningful consequences, while compliant businesses have a clear, predictable pathway to demonstrate compliance and continue participating in lawful trade.
AAEI stands ready to work with CBP and the Administration on implementation. We believe the Executive Order can strengthen customs enforcement while preserving the efficiency, predictability, and competitiveness of legitimate U.S. trade.
Thank you for the opportunity to provide AAEI’s position.
ABOUT AAEI:
For over 100 years, the American Association of Exporters and Importers (AAEI) has served as a prominent and trusted national voice for the United States’ international trade community. AAEI proudly represents various industry sectors within the global trade landscape, comprising manufacturers, importers, exporters, wholesalers, retailers, and their service providers such as customs brokers, freight forwarders, trade advisors, insurers, security providers, transportation interests, and ports. Many of its members are small businesses seeking opportunities to export to foreign markets, while our larger-sized members help to fuel the economy through their supply chains. As the premier U.S. international trade organization, AAEI is recognized for its expertise in the day-to-day enablement of trade, including the administration and compliance with import and export laws of the United States, making it an indispensable resource for those directly involved in and impacted by developments in international trade.