Cassidy Introduces BILL to Protect U.S. Markets FROM Fraud

WASHINGTON —U.S. Senator Bill Cassidy, M.D. (R-LA) introduced theSecuring Accountability in Foreign Entries (SAFE) Act, which would ensure the U.S. customs system provides fair and enforceable conditions for reliable trade partners to access the U.S. market.
“American markets should be safe from foreign fraudsters,”said Dr. Cassidy. “We’re making it easier to do business with the partners we trust, and harder for those we don’t.”
“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 U.S. House of Representatives Budget Committee Chairman Jodey Arrington (R-TX-19).“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.”
BACKGROUNDFor decades, U.S. customs law allowed foreign entities—without a meaningful U.S. presence—to act as importers of record (IOR). The SAFE Act ensures that only verifiable and accountable parties can serve as importers of record across all entry types, aligning bonding requirements with current trade system while recognizing the significant trading relations with trusted allies and partners. The bill enhances the integrity of the U.S. customs system and levels the playing field for compliant companies.
The SAFE Act 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.
“CPA strongly supports Senator Cassidy’s Securing Accountability in Foreign Entries Act because it rewinds a disastrous undermining of core customs principles. The concept of a ‘Non-Resident Importer’ is incompatible with the core principle of customs law that whomever is making customs declarations to an officer is someone that can be arrested for lying. Overseas, judgment-proof vendors should not be able to act as importers,”said Jon Toomey, President of the Coalition for a Prosperous America
“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. 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,”said Ryan Petersen, Founder and CEO of Flexport
“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.  This legislation provides new tools important for protecting US revenue and enforcement of law,”said the International Trade Surety Association
“The Alliance for Trade EnforcementNOW supports the Securing Accountability in Foreign Entries (SAFE) Act. The Alliance’s platform reflects the lived experience of companies and industry associations that operate in compliance with trade laws and rely on effective enforcement to compete fairly and sustain their businesses. Importer transparency, traceable financial responsibility, and clear jurisdictional accountability are not only practical requirements for a fair trading environment – they are necessary conditions for the viability of American industry,”said David Rashid, Founding Member of the Alliance for Trade EnforcementNOW
“The Northern Border Customs Brokers Association appreciates the opportunity to participate in the dialogue surrounding the ‘Securing Accountability in Foreign Entries Act’ legislation and thanks Senator Cassidy and his staff for the engagement with stakeholders. We are particularly supportive of the legislation’s recognition of reciprocal relationships with trusted trading partners, including Canada. As an organization representing customs brokers operating along the northern border, we see firsthand the importance of reciprocity in promoting efficient, secure, and predictable cross‑border trade. Aligning treatment for reciprocal programs strengthens supply chains and reinforces longstanding economic and security partnerships between the United States and Canada,”said Brian Barber, President of the Northern Border Customs Brokers Association
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