CBP Interim Final Rule: Foreign Importers of Record Must Be CTPAT-Validated or Use a CTPAT-Validated Broker Starting January 5, 2027
CONCORD SOLUTIONS GROUP — TRADE COMPLIANCE UPDATE
CBP has issued an interim final rule, Heightened Requirements for Foreign Importers of Record, implementing the importer-of-record provisions of Executive Order 14411, Strengthening Customs Enforcement. CBP released the rule on November 5, 2026, and it is scheduled for Federal Register publication on November 6, 2026. The rule takes effect 60 days after publication, on January 5, 2027, which is also the comment deadline.
Who is a U.S. IOR
New 19 CFR Part 110 defines a U.S. importer of record as a U.S. citizen or lawful permanent resident, or an entity organized under U.S. law and located in the United States that, at all times, either has at least 51% of its beneficial owners as U.S. citizens or permanent residents with control of the entity, or directly owns a significant amount of unencumbered U.S. real property. A beneficial owner is a natural person who exercises substantial control or owns or controls at least 25% of the entity. Any importer that does not qualify is a foreign IOR, even if incorporated in the United States.
Foreign IOR entry restrictions
A foreign IOR may not enter goods for consumption unless it is CTPAT-validated (certification alone is not enough) or uses a CTPAT-validated licensed customs broker. CBP states that only Canadian foreign IORs are currently eligible for CTPAT importer validation. The restriction covers all formal entries and informal entries filed on CBP Forms 3461 or 7501, operationally entry types 11, 12 and 13. CBP did not prohibit informal entry by foreign IORs at this time but says it may do so later.
New filing and broker duties
Filers must declare at entry and entry summary whether the IOR qualifies as a U.S. IOR, answered Yes or No in ACE. Before declaring a client a U.S. IOR, every broker must request and review records establishing qualification (for example, citizenship or residency evidence, corporate charters, financial statements, purchase receipts or documents of title) and keep those records for five years. A power of attorney is now required even when the broker acts as IOR, which revokes Headquarters Ruling 223772. An inaccurate U.S. IOR declaration can lead CBP to require live entry or end immediate delivery privileges. CBP also gains discretion to pursue negligent or grossly negligent broker violations under 19 U.S.C. 1592 rather than only 19 U.S.C. 1641.
Delayed compliance
Brokers may request delayed compliance with the new verification requirement only, by January 5, 2027. Approved brokers must show good-faith progress and be in full compliance by May 6, 2027. The delay does not postpone the foreign IOR entry restrictions or any other part of the rule.
Importers should be prepared to provide ownership and qualification records to their customs brokers before January 5, 2027.
For more information, visit: CBP news release, Heightened Requirements for Foreign Importers of Record
This update is provided by Concord Solutions Group for informational purposes and does not constitute legal advice.