U.S. Customs and Border Protection (CBP) has published a significant new interim final rule, “Heightened Requirements for Foreign Importers of Record,” in the Federal Register on Nov. 6, 2026.
The rule, issued in accordance with Executive Order 14411, introduces stricter requirements for determining whether an importing entity qualifies as a U.S. importer of record (IOR), establishes new Customs Trade Partnership Against Terrorism (CTPAT) requirements for foreign importers and expands customs brokers’ responsibilities for verifying their clients’ eligibility.
These changes take effect Jan. 5, 2027, and may impact businesses that have been importing into the United States for years without previously being classified as foreign importers.
Under the new regulations, having a U.S. business address, employer identification number (EIN) or U.S. incorporation alone will no longer be sufficient to establish eligibility as a U.S. importer of record.
To qualify as a U.S. IOR, a business entity must be organized under U.S. law, located in the United States and continuously satisfy at least one of the following conditions:
- U.S. ownership and control: At least 51% of the entity’s beneficial ownership must be held by U.S. citizens or lawful permanent residents who control the entity.
- U.S. real property ownership: The entity must directly own a significant amount of unencumbered real property in the United States. CBP may consider the property’s net unencumbered value where some financing or encumbrance exists.
CBP may also evaluate an entity’s actual U.S. operations, physical presence, capitalization and available domestic assets when determining whether it qualifies as a U.S. IOR.
Importantly, U.S.-incorporated subsidiaries of foreign parent companies may be classified as foreign IORs under these new criteria. Businesses with foreign investors, complex ownership structures or leased rather than owned U.S. facilities should carefully review their eligibility.
New CTPAT Requirements for Foreign Importers
Beginning Jan. 5, 2027, foreign importers of record must meet one of the following requirements to make covered customs entries:
- Be independently CTPAT-validated
- Designate a licensed U.S. customs broker that is CTPAT-validated to file entries on their behalf
These requirements apply to formal entries and covered informal entries requiring CBP forms 3461 or 7501, including applicable entry types 11, 12, and 13. Foreign importers that do not meet either requirement may be unable to secure customs entry and release of their merchandise.
The impact extends beyond businesses operating exclusively outside the United States. Importers should pay particular attention to the following:
- Foreign-owned U.S. companies: A company incorporated in the United States may no longer qualify as a U.S. IOR solely because it maintains an EIN, domestic address or U.S. operations. Ownership, control and qualifying real property must be evaluated.
- Delivered Duty Paid (DDP) shipments and foreign suppliers: Importers utilizing DDP arrangements should review which party is acting as the importer of record. Foreign suppliers serving as IORs must satisfy the new requirements, regardless of the commercial shipping terms.
- Additional documentation requirements: Customs brokers will be required to request and review supporting documentation to verify their clients’ U.S. IOR status. Importers should anticipate additional information requests, particularly regarding beneficial ownership, corporate structure and qualifying U.S. assets.
- Potential cash-flow and clearance impacts: An inaccurate declaration of U.S. IOR status may result in CBP requiring live entry, meaning estimated duties, taxes and fees must be paid before merchandise can be released.
CBP may also discontinue immediate delivery privileges and pursue applicable enforcement actions.
For importers with substantial duty exposure, these changes could create additional working capital requirements and affect cargo release timelines.
