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Arrington Introduces Legislation to Strengthen Customs Enforcement

Washington, March 13, 2026
Tags: Economy
  • SAFE Act thumbnail.png

Washington, D.C. – House Budget Chairman Jodey Arrington (TX-19) introduced the Securing Accountability in Foreign Entries (SAFE) Act, legislation aiming to strengthen the integrity of the U.S. customs system by closing loopholes that make it possible for foreign importers to avoid paying tariffs. 

This legislation is being led in the Senate by Senator Bill Cassidy, M.D. (R-LA).
 
“President Trump has taken decisive action to confront unfair global trade practices, but Congress must do its part to close loopholes that allow foreign companies - often backed by adversaries like China - to skirt U.S. trade enforcement,” said Chairman Arrington. “My Securing Accountability in Foreign Entries (SAFE) Act requires every Importer of Record to have a real and verifiable presence in the United States and subjects them to enforcement by U.S. Customs and Border Protection (CBP). I’m proud to support the President’s America First trade agenda by leading this effort to safeguard taxpayer dollars and ensure a level playing field for American businesses and workers.”
 
“American markets should be safe from foreign fraudsters,” said Senator Cassidy. “We’re making it easier to do business with the partners we trust, and harder for those we don’t.”
 
“Right now, the U.S. is the only major economy that allows foreign companies to import without meaningful accountability. That creates a huge enforcement gap and an uneven playing field for businesses that are doing things the right way.” said Ryan Petersen, Founder and CEO of Flexport. “The fix here is actually pretty simple. We should continue allowing foreign companies to import into the U.S. but require basic accountability—like establishing a U.S. subsidiary, having at least one local employee, and a U.S. bank account. That’s a common-sense standard that would weed out bad actors while still supporting open trade.” 
 
“The International Trade Surety Association recognizes the need for new legislation and enhanced CBP processes to meet the increasingly fraudulent use of Non-Resident-Importer privileges and the ability to easily create new importers of record that later are found to be insolvent shell companies.” said the International Trade Surety Association. “This legislation provides new tools important for protecting US revenue and enforcement of law.”
 
Background: 
  • Non-Resident Importers (NRIs), primarily from China, frequently declare import values far below the cost of the product to pay fewer tariffs.  
  • When an American importer commits fraud, CBP can take action through domestic legal channels as their form of enforcement. However, when a Chinese importer does the same thing, they often disappear, making it nearly impossible for CBP to track them down and take legal action. 
  • The SAFE Act would prevent this form of customs fraud by requiring that all importers have U.S. citizenship, lawful permanent residency, or a physical presence in the United States, with some exemptions for trusted trading partners. 
  • The legislation also requires importers to pay duties, taxes, and fees directly to CBP from a verified U.S. bank account tied to the importer’s legal entity; ensuring CBP can trace payments to legitimate and identifiable entities. 
  • This bill would ensure that only accountable entities benefit from expedited customs processing, while protecting U.S. systems from exploitation by adversarial regimes. 
 
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