Trump’s new order to stop tariff evasion, importers and foreign companies will be thoroughly investigated

Washington, June 4. There will now be strict scrutiny of foreign companies sending goods to America. Tariff evasion and counterfeit or illegal goods will be cracked down on, and rule breakers may find it difficult to do business in the US. President Donald Trump has signed a sweeping executive order, which aims to tighten scrutiny of foreign goods coming into the US and prevent tariff (import duty) evasion. The Trump administration says that many foreign companies take advantage of loopholes in the rules to evade tariffs and harm American industries.

Therefore the government wants to strictly enforce trade rules. Under this order, companies sending goods to America will now have to provide more information. Companies will have to reveal who their real owners are. Companies that provide false information or evade fees may be subject to heavy fines. More financial guarantees (bonds) may be asked from importers. The Customs Department will further tighten audit and investigation. If any Indian or other foreign company sells goods to America, it will have to strictly follow the rules. You may have to face action if you give wrong information.

Under the order, there will be more scrutiny of foreign companies exporting to America. Foreign companies will not be able to take advantage of some simplified import procedures. Additional rules must be followed to send goods to America. The order directs federal agencies to overhaul customs procedures, require more information from importers, tighten audits and penalties, and close loopholes that allow companies to evade duties, conceal their true ownership structures and circumvent US trade laws.

The order, signed on Wednesday (local time), says, “Customs enforcement is vital to America’s national security, foreign policy, and economy.” The order also said that “systemic deficiencies, legal loopholes, weak enforcement mechanisms and archaic procedures have provided opportunities to people with ill intentions to evade the law.” Before signing the order at the White House, US Customs and Border Protection Commissioner Rodney Scott said the administration is now applying the border security policy to trade enforcement.

He said, “We are applying the same principles to trade to protect American industries. Individual countries and people are hurting American businesses by weakening import-export rules and tariff systems, and we will stop that.” According to the order, the Department of Homeland Security will have to amend the rules related to the eligibility of importers within 180 days. Under this, it will be mandatory for importers to provide more financial guarantees (bonds), detailed disclosure of ownership information and information about import volumes, business relationships and assets located in the US.

The administration is also paying special attention to foreign importers. It believes that it is difficult to take action against them because their assets, businesses and key people are often located abroad. The order directs agencies to prevent foreign importers from using certain informal import procedures and impose additional requirements for formal imports into the US. An important provision of the order sets the condition of “good standing” for importers. Companies found guilty of illegally importing fentanyl, related chemicals or other prohibited goods could lose the right to import goods into the United States.

Apart from this, importers, customs brokers and freight agencies will be investigated more thoroughly. Risk levels will be decided based on their compliance and record. Trump’s trade adviser Peter Navarro said the initiative would generate huge revenue for the government and reduce customs fraud. “This executive order could generate $20 to $30 billion in additional revenue each year. We will go after fentanyl, unsafe products, counterfeit goods, and tariff evaders,” he said. White House Staff Secretary Will Scharf said the purpose of the order is to ensure that importers accurately report goods coming across the border and correctly pay duties and tariffs.

“We want to ensure that importers accurately report the goods they are bringing into the United States, that illegal or prohibited goods do not enter the country, and that duties and tariffs imposed on imported goods are properly accounted for,” he said. The order comes at a time when the Trump administration is pushing for tariffs, supply chain protection and a trade policy that promotes domestic manufacturing. After becoming President again, Trump has been continuously saying that it is necessary to strictly follow trade rules to protect American industries from unfair competition.