Securing Accountability in Foreign Entries Act
- Bill Number
- H.R. 7812
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2026-03-05: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-30T23:03:39Z
AI-Generated Summary
Securing Accountability in Foreign Entries Act (H.R. 7812)
Purpose
This legislation amends the Tariff Act of 1930 to strengthen requirements for importers of record. It aims to ensure that those responsible for importing goods into the United States have a verifiable presence or affiliation in the country, handle payments directly, and maintain sufficient financial security through bonds.
Key Provisions
- Importer of Record Location Requirements (Section 2):
Amends 19 U.S.C. 1484(a)(2)(B) to mandate that the importer of record must be either a U.S. citizen or lawful permanent resident (for individuals) or a qualifying entity. Qualifying entities must have a physical U.S. location and at least one U.S. citizen or permanent resident owner or full-time employee; be organized under the laws of Canada, Australia, or a "covered country" with reciprocal importer rules; or be an affiliate of a large U.S. entity meeting criteria such as three years of continuous operation, at least 1,500 full-time U.S. employees, and $1,000,000 in U.S. gross receipts or assets, with a certification of joint liability. Foreign entities must use a qualifying U.S. subsidiary or entity as the importer of record. Individuals are limited to serving as importer of record for one entity, with an exception for designated customs brokers in express consignment cases. Defines terms like "physical location" (excluding shared spaces or virtual addresses), "full-time employee," "affiliate," and "control" (more than 50% ownership). Requires U.S. Customs and Border Protection (CBP) to issue regulations within 360 days for verification without relying on brokers or sureties, and to impose penalties for false statements.
- Direct Payment Responsibility (Section 3):
Amends 19 U.S.C. 1484(a) to require importers of record to pay duties, taxes, and fees directly to CBP via electronic transfer from a U.S.-chartered depository institution. The account must be in the importer's legal name (or a verified majority-owned U.S. entity) and verified under anti-money-laundering customer identification rules. Importers must provide account details and an attestation before the first entry. CBP may request confirmation from the depository institution. Payments from third parties or non-compliant accounts are prohibited.
- Bonding Requirements (Section 4):
Mandates a minimum $100,000 continuous import bond for eligible importers, applying to new bonds after 60 days, renewals after 360 days, or insufficient existing bonds. Customs brokers may not use their own bonds unless acting as the importer of record. Provides an exception for qualifying express consignment operators or carriers (U.S.-organized with substantial U.S. presence, at least 300,000 U.S. employees, and using only wholly owned brokers), allowing them to designate brokers as importers of record.
The amendments generally apply one year after enactment.
Significant Changes to Existing Law
- Expands restrictions on who qualifies as an importer of record beyond current eligibility rules, introducing location, ownership, and reciprocity criteria for foreign entities.
- Shifts from indirect or broker-handled payments to mandatory direct electronic payments from verified U.S. accounts.
- Increases the minimum bond amount for continuous import bonds and limits broker use of bonds.
- Adds new verification, attestation, and penalty mechanisms not present in the original Tariff Act provisions.
Potential Impacts
- Government Agencies: Increases CBP's administrative and enforcement workload for verification, bond monitoring, and payment processing; requires new regulations and investigative tools.
- Citizens and Businesses: Raises compliance costs for importers, particularly smaller or foreign-based entities; may limit participation by non-qualifying foreign importers.
- International Relations: Favors entities from Canada, Australia, or reciprocal "covered countries"; could affect trade flows with non-qualifying nations by requiring U.S. subsidiaries or affiliates.
Main Stakeholders Affected
- Importers of record (individuals and entities).
- Foreign companies and their U.S. affiliates or subsidiaries.
- Customs brokers and express consignment operators or carriers (e.g., those meeting large-scale U.S. employment thresholds).
- U.S. Customs and Border Protection and depository institutions involved in payments.
- U.S. businesses required to serve as importers or provide certifications.
Notable Legal, Constitutional, or Political Implications
- Introduces detailed definitions and verification processes that may raise questions about due process in enforcement or equal protection for foreign entities.
- Establishes reciprocity standards for "covered countries" determined by the U.S. Trade Representative and CBP, potentially affecting trade agreements.
- Includes exceptions for large express carriers, which could create distinctions based on business size and structure.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Arrington, Jodey C. [R-TX-19]
Recent Actions
- 2026-03-05: Referred to the House Committee on Ways and Means.
- 2026-03-05: Introduced in House
- 2026-03-05: Introduced in House
Bill Versions
- Securing Accountability in Foreign Entries Act — issued 2026-03-05 — PDF (14 pages)