House Budget Chairman Jodey Arrington introduced the Securing Accountability in Foreign Entries (SAFE) Act on Mar. 13, legislation designed to strengthen U.S. customs enforcement by closing loopholes that allow foreign importers to avoid paying tariffs.
The bill aims to address concerns about foreign companies, particularly those backed by adversaries such as China, circumventing U.S. trade laws and undermining American businesses. The SAFE Act is being led in the Senate by Senator Bill Cassidy of Louisiana.
“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.”
Senator Cassidy said, “American markets should be safe from foreign fraudsters. We’re making it easier to do business with the partners we trust, and harder for those we don’t.” Ryan Petersen, Founder and CEO of Flexport, added, “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… 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.” The International Trade Surety Association also voiced support: “This legislation provides new tools important for protecting US revenue and enforcement of law.”
The SAFE Act would require all importers either have U.S. citizenship or lawful permanent residency or maintain a physical presence in the United States; some exemptions would apply for trusted trading partners. It also mandates that duties, taxes, and fees be paid directly from verified U.S.-based bank accounts tied to legal entities.
Arrington has represented Texas’ 19th district since replacing Randy Neugebauer in 2017 according to Ballotpedia. He has won several general elections since then: defeating Nathan Lewis in both 2024 (with over 80% of votes) according to Ballotpedia and 2022 according to Ballotpedia, Tom Watson in 2020 according to Ballotpedia, Miguel Levario in 2018 according to Ballotpedia, and Troy Bonar in 2016 according to Ballotpedia.
Supporters say these changes will help prevent customs fraud committed through non-resident importer privileges while ensuring only accountable entities benefit from expedited processing.
