The SAFE Act: Securing Accountability in Foreign Entries
Introduced by Senator Bill Cassidy (R-LA), the SAFE Act would require all importers of record to be verifiable, accountable parties — ending a decades-long loophole that allowed foreign entities without meaningful U.S. presence to import goods anonymously. This is one of the most significant pieces of legislation to advance AEBA's reform agenda.
“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.”
— Senator Bill Cassidy (R-LA)
AEBA Fully Supports the SAFE Act
The SAFE Act addresses importer accountability — a critical piece of the broader reform needed to protect American commerce. AEBA supports this legislation without reservation.
The SAFE Act Fixes Identity
Requires verifiable, accountable importers of record.
Ends anonymous foreign imports. Critical infrastructure for trade enforcement. The SAFE Act ensures that every entity importing goods into the United States can be identified, located, and held accountable.
AEBA Is Fixing Tax Enforcement
Applying existing domestic law to ensure foreign sellers pay U.S. taxes.
Separately, AEBA advocates applying existing domestic law — IRC §864, the TCJA, and established withholding mechanisms — to ensure foreign sellers pay U.S. taxes. The SAFE Act identifies them. Existing law taxes them.
The Problem This Solves
For decades, the U.S. customs system has allowed foreign entities without any meaningful American presence to serve as importers of record. This means a company with no U.S. address, no employees, no tax ID, and no assets on American soil can import goods into the world's largest consumer market — with virtually no accountability.
When something goes wrong — unsafe products, evaded duties, fraudulent valuations, counterfeit goods — there is no one to hold responsible. The foreign importer has no assets to seize, no office to inspect, no person to serve legal process against. American businesses, meanwhile, are fully traceable, fully taxed, and fully accountable.
As Flexport CEO Ryan Petersen stated: “The U.S. is the only major economy allowing foreign companies to import without meaningful accountability.”
Key Provisions of the SAFE Act
Four structural changes that close accountability gaps in the U.S. customs system.
Verifiable Importers of Record
Foreign entities without meaningful U.S. presence can no longer serve as importers of record. Every importer must be verifiable and accountable — ending decades of anonymous, untraceable imports.
Directly implements AEBA Priority 03: Mandatory U.S. Entity + EIN for all foreign sellers.
Modernized Bonding Requirements
Aligns bonding requirements with the realities of modern trade, ensuring adequate financial guarantees are in place to cover duties, taxes, and penalties for non-compliance.
Supports AEBA's call for financial accountability structures that treat all sellers equally.
Trusted Trading Relationships
Recognizes significant trading relationships with trusted allies, streamlining legitimate commerce while increasing scrutiny on high-risk imports.
Aligns with AEBA's principle: fair rules for all, not blanket protectionism.
Enhanced Customs Integrity
Strengthens the overall integrity of the U.S. customs system by closing enforcement gaps that have allowed fraud, undervaluation, and regulatory evasion to flourish.
Addresses multiple AEBA reform points on customs enforcement, product safety, and import fraud.
How the SAFE Act Advances AEBA's 16-Point Reform Package
The SAFE Act directly addresses five of AEBA's reform priorities. This is not incremental — it is structural.
AEBA Reform Point
SAFE Act Provision
Impact Level
Priority 03: Mandatory U.S. Entity + EIN
Requires verifiable parties as importers of record
Reform 06: Customs Enforcement
Enhanced customs system integrity
Reform 09: Product Safety Standards
Accountable importers enables product traceability
Reform 12: Bonding & Financial Guarantees
Modernized bonding requirements
Reform 14: Anti-Fraud Measures
Eliminates anonymous foreign importers
Organizations Backing the SAFE Act
A growing coalition of trade, logistics, and policy organizations supports this legislation.
Coalition for a Prosperous America
A bipartisan trade policy organization representing domestic producers and workers.
Flexport
A leading global freight and customs brokerage platform.
International Trade Surety Association
Represents surety companies that underwrite customs bonds.
Alliance for Trade EnforcementNOW
An alliance advocating for stronger enforcement of U.S. trade laws.
Northern Border Customs Brokers Association
Represents licensed customs brokers along the U.S.–Canada border.
The SAFE Act proves that Congress is listening.
Now we need them to hear us louder.
The SAFE Act addresses one critical piece — importer accountability. But the full reform AEBA advocates for goes further: tax enforcement, platform-level withholding, product safety, IP protection, and data privacy. Every company that joins the alliance strengthens the case for the complete reform package.