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New Executive Order Calls for Significant Customs Law Changes, Directs CBP to Crack Down on Foreign Importers and Enhance Penalties

By Shara Aranoff, Alexander Chinoy & Ariel Rosenbaum on June 10, 2026
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On June 3, 2026, the President issued an Executive Order (“EO”) entitled “Strengthening Customs Enforcement,” which is likely to have far-reaching consequences for companies that act as importers in the United States.  The EO is expected to have a disproportionate impact on importers that are based outside the United States or have a minimal U.S. presence.  It will also have an across-the-board impact on CBP enforcement, penalties, and penalty mitigation options for importers who are subjected to liquidated damages and other penalty claims. 

Click here to read the full alert on cov.com.

Photo of Shara Aranoff Shara Aranoff

Shara helps clients navigate trade remedies, tariffs, and customs regulations in support of their U.S. and global market strategies.

Shara is the Chair of Covington’s International Trade Practice Group, and co-leads the Customs practice.

Drawing on her 20 years of service in the…

Shara helps clients navigate trade remedies, tariffs, and customs regulations in support of their U.S. and global market strategies.

Shara is the Chair of Covington’s International Trade Practice Group, and co-leads the Customs practice.

Drawing on her 20 years of service in the U.S. government, she develops legal and public policy strategies to assist clients engaging with the U.S. International Trade Commission (ITC), U.S. Customs and Border Protection (CBP), Congress, and the courts. In high-stakes antidumping and countervailing duty investigations, Shara helps global manufacturers, distributors, and retailers protect their access to the U.S. market. She assists technology, life sciences and manufacturing companies enforce and defend their intellectual property rights in cross-border Section 337 investigations. Chambers praises her for bringing “behind-the-curtain knowledge to the private sector” in proceedings before the ITC by leveraging her experience as a decision maker.

Shara also regularly advises clients in a wide range of industries on Customs compliance and tariff mitigation, including:

Providing legal opinions or seeking Customs rulings on classification, valuation, country of origin, and product marking/labelling.
Conducting internal compliance reviews, drafting compliance policies, and providing training.
Responding to CBP audits and inquiries and filing voluntary disclosures.
Developing strategies to reduce tariffs and take advantage of trusted trader programs.

Prior to joining the firm, Shara was a Commissioner and Chairman of the ITC, where she was a decision-maker in hundreds of Section 337, antidumping, countervailing duty, and safeguard investigations.

She previously served as Senior International Trade Counsel for Senator Max Baucus (D-MT) at the U.S. Senate Committee on Finance, where she was responsible for legislative and policy issues including Trade Promotion Authority; negotiations involving the World Trade Organization and free trade agreements; and trade remedy and customs laws. She was also an attorney-advisor in the Office of the General Counsel at the ITC, where she was lead counsel in litigation before the Court of Appeals for the Federal Circuit and the Court of International Trade.

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Photo of Alexander Chinoy Alexander Chinoy

Alex Chinoy assists clients with the resolution of inbound U.S. trade disputes, appearing before a range of U.S. courts and agencies. He is an accomplished trade litigator who has represented clients at both the U.S. International Trade Commission (ITC) and the U.S. Department…

Alex Chinoy assists clients with the resolution of inbound U.S. trade disputes, appearing before a range of U.S. courts and agencies. He is an accomplished trade litigator who has represented clients at both the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC) in antidumping (AD) and countervailing duty (CVD) investigations. He has also been involved in more than 30 Section 337 unfair import investigations before the ITC. He has appeared in a range of other trade enforcement and regulatory matters, including litigation at the Court of International Trade (CIT) and the Court of Appeals for the Federal Circuit (CAFC), involving actions against U.S. Customs and Border Protection (CBP), the DOC, and the ITC. 

Outside the courtroom, Alex assists clients with a range of CBP compliance and enforcement matters, including inter partes IP enforcement proceedings, 19 CFR 177 ruling requests, investigative inquiries including RASAs and audits, prior disclosures, penalty notice responses, development of corrective action plans, and tariff evaluation and mitigation counseling.

In addition to his litigation and customs work, Alex has been repeatedly recognized by Chambers for his work at the ITC, with sources noting he is “impressive beyond his years of practice.” Alex is a past President of the ITC Trial Lawyers Association, the leading bar association for Section 337 practitioners. He has hands-on experience with every phase of Section 337 investigations. He has participated in a dozen hearings at the ITC ranging from trials on violation to enforcement hearings and temporary relief proceedings. His experience spans every phase of 337 litigation, from pre-complaint counseling through appeal of final ITC determinations to the CAFC, with a particular focus on disputes and counseling involving CBP enforcement of ITC exclusion orders.

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Photo of Ariel Rosenbaum Ariel Rosenbaum

Ariel Rosenbaum advises clients on a broad range of international trade and arbitration-related issues. Ariel helps clients navigate tariffs, customs regulations, and import and export requirements with regard to their global operations. She assists clients undergoing trade investigations, as well as clients needing…

Ariel Rosenbaum advises clients on a broad range of international trade and arbitration-related issues. Ariel helps clients navigate tariffs, customs regulations, and import and export requirements with regard to their global operations. She assists clients undergoing trade investigations, as well as clients needing assistance understanding the U.S. regulatory environment.

Ariel’s international trade work has spanned a multitude of sectors, including automotive, pharmaceuticals, medical devices, global energy, food and beverage, defense and aerospace, footwear, and consumer electronics. She has specific expertise in assisting clients navigate intersecting Customs and Border Protection and Partner Government Agency requirements. Ariel assists clients in diverse compliance matters including tariff classification, country of origin, product marking/labeling, valuation methodology, RASAs and audits, due diligence, post-entry procedures, penalty notice responses, voluntary disclosures, and tariff evaluation and mitigation. Ariel has represented clients before the U.S. International Trade Commission and U.S. Customs and Border Protection.

Ariel’s international disputes practice focuses on the arbitration and litigation of public international law claims, the arbitration of investor-state claims, and the resolution of other treaty-based claims. Her arbitration practice includes sovereign representation in international and domestic courts.

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  • Posted in:
    Administrative and Regulatory, Other
  • Blog:
    Global Policy Watch
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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