U.S. customs enforcement rules threaten Canadian exports

New U.S. customs enforcement measures and tariffs are expected to significantly impact Canadian exporters. Under Section 338, Washington is set to impose 50 percent duties on hundreds of products starting August 19. This may force firms to increase customs-bond coverage to mitigate the government's exposure to unpaid duties.

Additionally, an executive order signed by President Donald Trump aims to tighten customs enforcement to combat trade fraud and the use of shell importers. The order directs the Department of Homeland Security to implement stricter registration, bonding, disclosure, and vetting requirements for importers.

Experts note that while the intent is to stop illicit trade, the implementation may affect Canadian firms operating as non-resident importers. If these firms lack sufficient U.S. assets or qualifying ownership, they may be classified as foreign importers of record, which would prohibit them from using simplified