On November 6, 2026, U.S. Customs and Border Protection (“CBP”) published an interim final rule that imposes heightened requirements on foreign importers of record (“IOR”) and requires U.S. IORs to declare their status on each entry. CBP is taking this action to implement section 2 of the President’s Executive Order on Strengthening Customs Enforcement (Executive Order 14411, dated June 3, 2026).
It’s tempting to regard this as a technical update to the rules applicable to IORs – the legal entity responsible for compliance with customs and trade law requirements when importing merchandise into the United States.
Make no mistake, however, this rule is part of the administration’s broader efforts to revamp U.S. trade enforcement with the goals of restricting the importation of i) unsafe products; ii) products derived from unfair trade practices such as forced labor; and iii) products that violate intellectual property rights.
The interim final rule is further aimed at increasing the recovery of uncollected revenue from foreign importers who are beyond the reach of U.S. enforcement efforts. CBP reports that non-CTPAT foreign IORs owe more than $1 billion in unpaid customs bills. The rule is intended to increase supply chain transparency and enhance U.S. national security by requiring foreign IORs to be validated in CBP’s voluntary program, Customs Trade Partnership Against Terrorism (“CTPAT”) program, where eligible, or to use customs brokers who are CTPAT validated.
Only U.S. importers and non-resident Canadian importers are eligible to seek CTPAT validation as an importer. As a practical matter, absent a change to CTPAT program eligibility, the compliance pathway for foreign importers, other than eligible Canadian importers, will be to rely on a CTPAT-validated broker. CBP estimates that roughly one-third of foreign IORs do not currently use one and will need to switch brokers.
Customs brokers and both big and small companies seeking access to the U.S. market must pay careful attention to these enforcement developments. Additional highlights include:
New requirements for U.S. IORs: the rule defines which entities qualify as a U.S. IOR. In addition to being organized and located in the United States, an entity generally must either have at least 51% of its beneficial owners be U.S. citizens or permanent residents who control the entity or directly own significant unencumbered U.S. real property. An IOR that fails to meet these criteria will be deemed to be a foreign IOR. Beginning January 5, 2027, each entry must declare whether the IOR qualifies as a U.S. IOR, and an inaccurate declaration can result in loss of immediate delivery privileges and additional entry requirements.
New requirements for foreign IORs: formal and informal entry of goods by a foreign IOR will only be permitted if: i) the foreign IOR is CTPAT validated and has the right to make entry; or ii) the entry is made by a licensed customs broker who is CTPAT validated.
Transition time: The interim final rule is effective January 5, 2027, which is also the deadline for submitting public comments. Customs brokers may request, by January 5, 2027, delayed compliance with their new obligation to verify clients’ U.S. IOR status, but all brokers must be in full compliance no later than May 6, 2027. The new requirements for foreign IORs are not subject to this delayed compliance date.
What companies engaged in U.S. trade should consider now: companies that source global products for importation into the U.S. should consider the following:
- Assess importer-of-record status. Determine whether your business qualifies as a U.S. IOR under CBP's new criteria, particularly where a U.S. entity is foreign-owned or operates as a subsidiary of a foreign manufacturer.
- Evaluate CTPAT options. Non-resident Canadian importers should assess whether pursuing CTPAT validation is preferrable to relying on a CTPAT-validated customs broker. All other foreign importers should confirm that their customs broker is CTPAT validated or plan to transition to one.
- Assemble documentation. Expect customs brokers to request records supporting U.S. IOR status, such as corporate charters, ownership information, financial statements, and documents of title.
- Prepare for implementation. Coordinate with customs brokers and legal counsel to address potential changes that may be necessary to meet new importation requirements before January 5, 2027.
With these new requirements, CBP is redefining which businesses qualify as U.S. importers, and indicating a strong preference for CTPAT-validated importers and customs brokers. Prompt action is essential to avoid commercial disruption to company supply chains.
Source: CBP Interim Final Rule, Heightened Requirements for Foreign Importers of Record, 91 Fed. Reg. 69977 (Nov. 6, 2026); Executive Order 14411, 91 Fed. Reg. 35125 (June 10, 2026).
