U.S. Sen. Bill Cassidy (R-LA) on March 5 proposed legislation that aims to address the increasingly fraudulent use of non-resident-importer privileges and the ability to create new importers of record that later are found to be insolvent shell companies.
“American markets should be safe from foreign fraudsters,” Sen. Cassidy said. “We’re making it easier to do business with the partners we trust, and harder for those we don’t.”
The Securing Accountability in Foreign Entries (SAFE) Act, S. 4003, would ensure the U.S. customs system provides fair and enforceable conditions for reliable trade partners to access the U.S. market.
For decades, U.S. customs law allowed foreign entities — without a meaningful U.S. presence — to act as importers of record (IOR).
If enacted, S. 4003 would authorize that only verifiable and accountable parties may serve as IORs across all entry types, aligning bonding requirements with the current trade system while recognizing the trading relations with trusted allies and partners.
The bill also would improve the integrity of the U.S. customs system and level the playing field for compliant companies, according to a bill summary provided by Sen. Cassidy’s office.
S. 4003 is supported by the Coalition for a Prosperous America, Flexport, the International Trade Surety Association, the Alliance for Trade EnforcementNOW, and the Northern Border Customs Brokers Association.