Inbound Logistics | July 2025

T he current regulatory Agyemang, vice president of business development and sales with ITF Group, a transportation solutions provider. “There’s constant activity, shifting frameworks, and new rules being environment in logistics feels like walking through a construction zone in New York City, says Sam installed while freight is still moving,” he says. Over the past year, the emphasis on transparency, environmental compliance, and security—both in the United States and abroad— has increased. One sign of these shifts is how the standards about knowing one’s customers that traditionally applied to nancial services institutions now encompass logistics-related companies, says Michael Kaye, U.S. lead of the commodities and shipping group and a partner in the international trade and foreign investment practice with Squire Patton Boggs. For years, regulators have said banks have a duty to ensure that the transactions they facilitate comply with relevant regulations. But over the past 18 months, regulators have focused on other types of service providers that facilitate international trade, including freight forwarders, logistics providers, and warehouse operating companies, among others. For instance, the Quint-Seal Compliance Note issued in December 2023 by the Departments of Commerce, Treasury, Justice, State, and Homeland Security stated that the complexity and global nature of today’s supply chains present opportunities for nefarious actors to evade U.S. sanctions and export control laws—say, by disguising the true origin, destination, or nature of their cargo. To avoid potentially illicit conduct, entities participating in the global transport of goods have to take responsibility for assessing their risk proles and implementing rigorous internal compliance programs. While the guidance wasn’t a regulation, it

was “a bold-faced reminder” that these organizations have an obligation to comply with the rules and know their cargo, Kaye says. U.S. Customs and Border Protection (CBP) has signaled in some of the executive orders that it will enforce customs duties and attempts to evade, as well as customs compliance, to the fullest extent of the law, says Jonathan Todd, vice chair, with the transportation and logistics practice group with national law rm Benesch. And when evasion is suspected, the agency’s policy today is to give less weight to mitigating factors. Other changes also appear likely. Environmental, social and governance (ESG) mandates likely will move from voluntary reporting to regulated enforcement, especially around emissions, sourcing, and packaging, predicts Tracy Meetre, chief commercial ofcer with Sunset Transportation. Traceability and safety standards also will continue to tighten for food and pharmaceutical cargo. As the regulatory environment has shifted from periodic updates to a state of continual evolution, compliance no longer is just a box to check, says Lindsay Conley, national sector leader with the consumer and logistics practice of Forvis Mazars, a public accounting rm. Instead, it becomes a strategic

lever for resilience, market access, and competitive advantage. Here are seven regulations that shippers and logistics providers will want to monitor. 1. The De Minimis Rule The current de minimis rule allows many imports to the United States valued at less than $800 to enter duty- free. However, in April 2025, an executive order eliminated de minimis treatment for some imports from China and Hong Kong, starting May 2, 2025. The tightening of the de minimis exemption marks a major shift for global ecommerce logistics. “Retailers and logistics providers now face higher import costs, longer clearance times, and greater compliance burdens, particularly for small parcels shipped directly from overseas,” says Korhan Acar, partner in Kearney’s strategic operations practice. To adapt, companies are consolidating shipments, expanding regional warehousing, and shifting to U.S.-based fulllment models, Acar says. Some are turning to long-term contracts to manage cost volatility, while others have paused direct shipments to the United States, he adds. In addition, CBP is proposing new requirements for more detailed information, such as the 10-digit

CIRCIA mandates that certain companies—including some shippers and logistics firms—report to the government cyber incidents that impact their operations. They also must report a data breach that involves their information.

134 Inbound Logistics • July 2025