US customs law: The new Executive Order 14411 and what German companies need to bear in mind now

New customs compliance requirements, sector-specific US tariffs, the USMCA and transfer pricing are changing the operating environment for companies operating internationally.

The trade policy landscape in the US is undergoing fundamental change. With Executive Order 14411, ‘Strengthening Customs Enforcement’, dated 3 June 2026, the US government has initiated a far-reaching reform of customs controls. The aim is to enforce compliance with existing regulations more rigorously, to better safeguard customs claims and to increase the transparency of international supply chains.

At the same time, sector-specific US tariffs, the rules of origin under the United States–Mexico–Canada Agreement (USMCA) and the customs treatment of intra-group transfer pricing are presenting German companies with additional challenges.

Back in 2017, the US Customs and Border Protection (CBP) published a revised version of its ‘Reasonable Care’ Informed Compliance Publication. The principles set out therein continue to serve as an important benchmark for effective customs compliance.

1. CBP Reasonable Care: Fundamentals of US Customs Compliance

US customs law is based on the principle of ‘informed compliance’. The customs authority provides information on the legal requirements, whilst importers are obliged to complete their customs declarations with reasonable care.

The CBP guidance document from September 2017 contains a comprehensive list of questions on this subject. Key areas for review are:

• Correct tariff classification in accordance with the US Harmonised Tariff Schedule (HTSUS)
• Correct determination of customs value and origin of goods
• Complete and traceable import documentation
• Written compliance guidelines and internal control procedures
• Monitoring of customs brokers engaged
• Compliance with import bans and trade policy measures

Responsibility for the accuracy of the customs declaration generally remains with the Importer of Record – even where external customs brokers are engaged.

2. Executive Order 14411: Tightening of US customs controls

Executive Order 14411 aims to eliminate weaknesses in customs clearance procedures, better safeguard customs claims and pursue breaches more rigorously.

In particular, the following measures are envisaged:

• Stricter requirements for the Importer of Record (IOR): Importers are to meet higher standards regarding identity, reliability, financial standing and customs bonds.
• Restrictions on foreign importers: Simplified customs procedures (informal entries) and the use of continuous customs bonds are to be restricted for foreign Importers of Record.
• Extended disclosure requirements: Additional information on corporate structures, ownership and supply chains is intended to increase transparency.
• More rigorous enforcement of customs violations: Incorrect customs classifications, inaccurate declarations of customs value and the circumvention of import duties are to be subject to stricter monitoring and sanctions.

The specific application of individual measures depends on their implementation by the relevant US authorities.

3. US sector-specific tariffs: Additional challenges for German exporters

In addition to Executive Order 14411, US sector-specific tariffs under Section 232 of the Trade Expansion Act of 1962 are becoming increasingly significant.

These tariffs apply in particular to:

• Steel, aluminium and copper, as well as certain derived products
• Motor vehicles and selected motor vehicle parts
• Other industrial products and machinery covered by the tariffs

The additional tariffs can significantly increase import costs. Key factors include tariff classification, the origin of the goods, the applicable additional tariffs and any possible exemptions. It is no longer sufficient for companies to be aware solely of the standard US import tariff rate. Rather, all applicable tariff measures must be taken into account when calculating costs and structuring international supply chains.

4. USMCA: Free trade agreement with complex rules of origin

The United States–Mexico–Canada Agreement (USMCA) has governed preferential trade in goods between the US, Mexico and Canada since 1 July 2020. The agreement is particularly relevant for German companies if they have production facilities, subsidiaries or suppliers in North America. To benefit from tariff preferences, the relevant product-specific rules of origin must be met.

In the automotive industry in particular, there are stringent requirements regarding regional value content, labour value content and the sourcing of certain materials. However, a USMCA preference does not automatically mean exemption from all sector-specific US additional duties. The specific duty burden must be assessed on the basis of the applicable regulations in each case.

5. Transfer Pricing: When transfer prices become a customs risk

An increasingly important aspect of US customs compliance is the interplay between transfer pricing and the customs valuation of intra-group goods supplies.

Many German companies supply their US subsidiaries on the basis of intra-group transfer prices. These are regularly based on tax principles, in particular the arm’s length principle. However, the fact that a transfer price is recognised for tax purposes does not automatically mean that it is also accepted for customs purposes.

Differing requirements under tax and customs law

Whilst tax transfer pricing aims to ensure an appropriate allocation of profits between associated companies, customs law focuses on the accurate determination of the customs value.

In the case of transactions between associated companies, CBP examines in particular whether the corporate relationship has influenced the agreed price.

Even transfer pricing documentation recognised for tax purposes is not, on its own, necessarily sufficient to demonstrate the appropriateness of the transaction value under customs law.

Retrospective transfer pricing adjustments

Particular risks arise from so-called year-end adjustments or transfer pricing adjustments.

If intra-group goods prices are adjusted retrospectively, this may have an impact on customs values that have already been declared.

Under certain conditions, such adjustments may be taken into account under US customs law. In particular, a suitable price agreement in place prior to importation, transparent calculation methods and compliance with the relevant CBP procedures are relevant in this regard.

The automatic incorporation of tax transfer pricing adjustments into the determination of customs value is not permitted.

Why transfer pricing is becoming more important due to higher US import duties

With rising US import duties, the correct determination of customs value is becoming significantly more important from an economic perspective.

Even relatively minor changes to the customs value can have significant financial implications where high sector-specific additional duties apply.

Companies should therefore align their tax transfer pricing models with their customs valuation methods.

Transfer pricing and customs valuation must be considered together – particularly in the case of intra-group goods deliveries to the US.

6. Importer of Record: A key role in US customs law

The Importer of Record is responsible for the proper importation of goods into the US.

Their responsibilities include submitting a correct customs declaration, determining the import duties owed and complying with the applicable import regulations.

This role is particularly relevant for German companies if they act as the Importer of Record themselves or import via their own US subsidiaries.

Deliveries under DDP (Delivered Duty Paid) should also be reviewed. Whilst the Incoterms govern the contractual allocation of costs and obligations, they do not automatically determine who may act as the Importer of Record under US customs law.

The requirements set out in EO 14411 may affect existing import models.

7. Customs compliance as an integral part of corporate risk management

The combination of ‘Reasonable Care’, sector-specific US tariffs, the USMCA, transfer pricing and Executive Order 14411 demonstrates that:

Customs compliance has long been about more than simply completing a customs declaration correctly.

It affects the entire organisation. Procurement, sales, logistics, tax, finance and the legal department must work together to identify regulatory risks at an early stage.

The following are particularly important in this regard:

• Data quality and documentation: Tariff codes, proofs of origin, customs values and transfer prices must be consistent and traceable.
• Internal controls: Companies require documented processes, clearly defined responsibilities and regular compliance audits.
• International coordination: German export organisations and US subsidiaries must ensure that tax transfer pricing, customs valuations and operational import processes are coordinated.
  
  

8. What German companies should be doing now in practical terms

Companies with business in the US are advised to carry out a systematic review of their customs compliance structures.

1. Review ‘importer of record’ structures: Who bears responsibility under customs law for imports?
2. Analyse sector-specific US tariffs: Which products are subject to additional tariffs and what exemptions might apply?
3. Assess USMCA preferences: Are the rules of origin being complied with and adequately documented?
4. Align transfer pricing and customs value: Are intra-group transfer prices tenable under customs law, and are subsequent adjustments handled correctly?
5. Review customs bonds and financial guarantees: Are existing safeguards sufficient?
6. Assess ‘reasonable care’ requirements: Do internal control procedures comply with the recommendations of the 2017 CBP guidance?
7. Strengthen international cooperation: Do customs, tax and finance departments, as well as North American subsidiaries, collaborate sufficiently?

A structured compliance check can help to identify risks at an early stage and implement necessary adjustments in a targeted manner.

9. How BDO Customs Managed Services supports businesses

The increasing complexity of US customs legislation presents businesses with the challenge of integrating regulatory requirements into their business processes in a sustainable and efficient manner.

BDO Customs Managed Services helps businesses to organise their international customs processes in a structured, compliant and efficient manner.

The focus is on combining customs expertise, standardised processes, digital solutions and continuous monitoring of compliance requirements.

The range of services may include, in particular, the following areas:

• Customs compliance and risk management: Review of existing customs processes and further development of internal control systems.
• Tariff classification, customs value and origin of goods: Support with the correct classification of goods and the application of rules of origin.
• Sectoral US tariffs and the USMCA: Analysis of additional tariff burdens and potential preferential benefits.
• Transfer pricing and customs valuation: Aligning tax transfer pricing models with customs valuation requirements in collaboration with specialist tax and customs teams.
• Importer of Record and customs compliance: Assessment of import structures, customs bonds and CBP requirements.
• Operational customs processes and digital solutions: Standardisation, automation and quality assurance of recurring customs processes.

Significant added value is generated through cross-border collaboration with the BDO US team. This enables German export requirements, US import regulations and international transfer pricing structures to be considered holistically.

Our aim is not only to support companies with current regulatory challenges, but also to ensure their customs organisation is resilient, efficient and future-proof in the long term.