Recently, many Amazon sellers have received an email from the platform regarding customs enforcement. The email mentioned that the U.S. government is advancing arrangements to strengthen customs enforcement under Executive Order 14411, and a new rule targeting recorded foreign importers is under government review and may be implemented soon.

Sellers quickly began discussing:

"It should be like the UK, requiring store VAT for customs clearance, and shipments need to fill in the shipment batch import code."

"I guess it means no more using vague offshore shells; next, customs clearance costs will continue to rise, and the cost of cutting corners gets bigger."

"My guess is it will increase logistics costs and restocking cycles, so we should raise prices."

U.S. Customs Tightens Scrutiny ofIOR

Amazon noted in the email that the U.S. government is currently working to enforce Executive Order 14411 on strengthening customs enforcement.A new rule specifically targeting "foreign importers of record (foreign IOR)" is under government review and may be implemented relatively soon.

As for the impact on sellers, Amazon also pointed out that there is currently no impact on sellers, and import operations continue as usual, but sellers are strongly advised to take time to review their customs arrangements and start preparing.

Some sellers believe this customs rule will require logistics companies to register many U.S. domestic companies to act as IOR, and the cost will be shared by all customers.

Although this rule won't change everything overnight, sellers should still understand in advance who your IOR actually is. IOR, or importer of record, is the individual or company officially responsible for importing goods into the U.S. In the past, many sellers did not pay direct attention to this concept, because customs clearance was often handled by freight forwarders or customs brokers, and IOR was more like a term in logistics contracts with little impact on sellers.

But the email made it clear: the U.S. government is developing new import rules under EO 14411, and will impose different levels of compliance requirements depending on whether your IOR is a "U.S. entity" or a "foreign entity"—with new rules for foreign IOR already in the review stage and likely to be implemented first.

If the IOR is classified as a foreign entity under future rules, additional customs requirements may apply; if the IOR is U.S.-based, sellers may face relatively fewer changes.

Although the rules are still under review and the timing and details are uncertain, transparency of the entity is being promoted, the room for vague offshore entity arrangements is narrowing, and customs compliance costs may rise.

As one seller put it: "The further you go in cross-border, the more complex it becomes. Every process is gradually requiring full compliance, and every link faces huge risks and costs—it's really tough."

First Confirm IOR Status, Then Assess Whether to Localize

Many sellers only seriously check who the importer is when their goods are detained. Shared titles, expiredBond, and third-party entities filled in by freight forwarders may work under old rules, but can break at any time under the new verification mechanism.

Therefore, what sellers should do now is not rush to change entities upon hearing the news, but first check the existing arrangements clearly.

The first step given in the email is specific: if sellers use a freight forwarder or customs broker, they can directly ask: "Is my importer a U.S. entity or a foreign entity? Which company exactly?" If it cannot be confirmed immediately, they should review transportation service agreements, customs clearance documents, and logistics contracts to verify the IOR name and corresponding responsibility arrangements.

The second step is tocheck the service provider's readiness. If the IOR is a foreign entity, sellers should further ask the freight forwarder or customs broker: How does the current entity plan to meet possible asset, bond, and reputation requirements? If additional materials, higher bonds, or a new import entity are needed after the rules take effect, who will bear the costs and how long will the adjustment take? If the provider can only say "wait until the policy comes out," it does not necessarily mean they cannot respond, but it suggests sellers should not place all preparations on a single service plan. At this point, they can first learn about alternative channels and switching cycles to allow time for possible adjustments.

Some experienced sellers pointed out that the future trend should be a gradual transition to domestic IOR. This judgment has some practical basis: if regulators impose higher requirements on foreign IOR, U.S. domestic entities may be easier to connect in some compliance steps.

However, some sellers believe domestic IOR is one option, but not a universal answer. The seller noted that a domestic entity involves the tax treatment of a U.S. company.

At present, sellers still have many concerns about the new rules. A domestic entity involves corporate governance, tax arrangements, bond capacity, and actual operating costs—it cannot be solved by simply changing the title. For sellers, a more prudent approach is to break the issue down:first confirm the current IOR status, then ask the freight forwarder about their readiness for the new requirements, and then evaluate whether to adjust based on your own business structure.

The rules are still on the way, and sellers need to prepare appropriately in advance.