U.S. Customs and Border Protection (CBP) has published an interim final rule establishing new requirements for foreign importers of record (IORs) and customs brokers. Published November 6, the rule takes effect January 5, 2027, and implements measures under Executive Order 14411, Strengthening Customs Enforcement.
New criteria for U.S. importer status
To qualify as a U.S. IOR, an entity must be located and organized in the United States and satisfy one of two additional conditions at all times:
- At least 51% of its beneficial owners must be U.S. citizens or lawful permanent residents and have control of the entity; or
- The entity must directly own a significant amount of unencumbered U.S. real property.
U.S. incorporation, an address, an EIN, or an accepted Form 5106 does not independently establish qualification.
CTPAT and broker requirements
A foreign IOR must be validated under CTPAT or use a validated customs broker. Initial certification or a pending application is insufficient. A validated foreign IOR with the right to make entry may use any licensed broker.
A foreign owner or purchaser may remain the IOR while a validated broker files as agent. The broker must act as IOR if its foreign principal is neither owner nor purchaser. A valid power of attorney is required when the broker acts for a principal, including as IOR. Covered informal entries remain available through the qualifying CTPAT route.
Brokers must request and review supporting records before declaring a client to be a U.S. IOR. This applies to existing and new clients. U.S. status must be declared at entry and entry summary, with verification records retained for five years from the verification date.
Inaccurate declarations may trigger live entry or loss of immediate delivery privileges. The rule also broadens CBP’s stated use of Section 1592 enforcement against brokers when an underlying violation occurs.
Deadlines and preparation
Importers should review their qualification, confirm the applicable CTPAT filing route, prepare supporting records, and clarify IOR responsibilities with their brokers before January 5.
Submit your comments to CBP
Comments can be submitted through the Federal eRulemaking Portal: http://www.regulations.gov, using docket number USCBP-2026-1387 for identification.
Additional information
For further details, see:
Strengthening Customs Enforcement