CBP’s foreign Importer of Record rule: from January 5, 2027 a foreign IOR needs CTPAT validation or a CTPAT validated broker

On November 6, 2026, U.S. Customs and Border Protection published an interim final rule, Heightened Requirements for Foreign Importers of Record, CBP Dec. 26-19, at 91 FR 69977. It takes effect January 5, 2027. From that date a foreign Importer of Record (IOR) may enter goods for consumption only if it is validated in the Customs Trade Partnership Against Terrorism (CTPAT) or files through a licensed customs broker that is CTPAT validated, and every United States IOR must declare its status on each entry.

The rule is the first regulation issued under Section 2 of Executive Order 14411, Strengthening Customs Enforcement (91 FR 35125). It creates a new 19 C.F.R. Part 110 that defines who counts as a United States importer, adds two sections to 19 C.F.R. Part 141 on entry by foreign and domestic importers, and gives customs brokers a duty to verify their clients. Comments are due January 5, 2027, under docket USCBP-2026-1387.

Who is a United States importer under the new Part 110

New 19 C.F.R. §110.2 sets the test. An individual qualifies as a “U.S. importer of record” (the rule’s term) if a United States citizen or lawful permanent resident. An entity qualifies only if it is located in the United States, is organized under United States law, and either has at all times at least 51 percent of its beneficial owners United States citizens or permanent residents who control the entity, or directly owns a significant amount of unencumbered United States real property at all times.

A beneficial owner under 19 C.F.R. §110.1 is a natural person who exercises substantial control or holds at least 25 percent of the ownership interests, counted through any layers of holding companies. Under 19 C.F.R. §110.2(b) CBP may verify the location test by weighing the scale of the entity’s operations, whether it is an instrumentality of a foreign manufacturer without a substantial United States presence, its principal place of business, its physical presence where employees are paid and revenue generated, its unencumbered physical domestic assets (cash in a United States bank, Treasury bonds, real property, inventory, machinery and equipment in the country), whether its gross sales generally exceed its cost of goods sold, and whether it is sufficiently capitalized. Any IOR that fails the test is a foreign IOR under 19 C.F.R. §110.3.

What a foreign IOR may do from January 5, 2027

New 19 C.F.R. §141.21 restricts entry for consumption by a foreign IOR, formal and informal alike (the preamble names entry types 11, 12 and 13 and all formal types). A foreign IOR that is CTPAT validated and holds the right to make entry under 19 U.S.C. §1484(a)(2)(B) may file itself or through any licensed broker. A foreign IOR that is not CTPAT validated must designate a licensed customs broker that is CTPAT validated to make entry or to act as IOR. If the foreign principal is not the owner or purchaser of the goods, the validated broker must act as IOR. The preamble states that a broker license alone is no longer enough to file for a non-validated foreign IOR, and that using a validated broker confers no CTPAT benefits on the client.

The conditions of 19 C.F.R. §141.18 for a nonresident corporation, a resident agent in the state of the port and a bond from a resident surety, remain in place. The new sections sit on top of them.

What a United States IOR declares, and what the broker checks

Under new 19 C.F.R. §141.22 a United States IOR enters without CTPAT, but at the time of entry and entry summary it must declare its qualification under §110.2 through a new checkbox on CBP Forms 3461 and 7501. A broker acting as IOR for a United States principal must identify the principal on the power of attorney, declare that the principal qualifies, and the principal must have a CBP Form 5106 on file. The Center Director decides any verification.

Revised 19 C.F.R. §111.29(a)(2) requires the broker, before making that declaration, to request and review the client’s records, such as proof of citizenship or residence, corporate charters, financial statements, purchase receipts or documents of title, and to keep the verification records for five years under 19 C.F.R. §111.23(b). Revised 19 C.F.R. §141.46 states that a power of attorney is required before a broker acts as IOR for a principal. Brokers may ask for delayed compliance with §111.29 before January 5, 2027; all brokers must comply by May 6, 2027.

An inaccurate declaration of United States status lets CBP require the entry summary with the entry under 19 C.F.R. §142.13(a)(5) and end immediate delivery privileges under 19 C.F.R. §142.25(a)(5). Appendix B to 19 C.F.R. Part 171 now states that a broker’s violation of 19 U.S.C. §1592 may draw a penalty under that section or any other remedy, including 19 U.S.C. §1641.

What is in effect and what is not

Nothing in the rule applies before January 5, 2027. The order’s direction in Section 2(b) to bar foreign IORs from informal entry is not implemented; CBP says it will monitor informal entries, which must themselves be filed by a validated IOR or broker from the effective date. The rule does not address de minimis shipments. The asset and bonding minimums, the good standing requirement and the penalty floor directed elsewhere in the order remain in rulemaking.

Why it matters at entry

Whoever is named as IOR owes the duties and answers for the declaration. From January 5, 2027 a foreign company that holds the role must show either its own CTPAT validation or a validated broker on every entry, and a United States company that holds it must be able to prove the ownership, location and capitalization facts behind its checkbox when its broker or CBP asks. The declaration is per entry, the verification is discretionary, and the records that support it sit with the IOR.

What the IOR documents

• Its organizing documents and the citizenship or residence of each beneficial owner at the 25 percent and control thresholds
• Financial statements showing capitalization, physical domestic assets, and gross sales against cost of goods sold
• Its CTPAT validation, or the validated status of the broker designated under §141.21
• The power of attorney under §141.46 and the Form 5106 on file for the principal
• The owner or purchaser status that supports the right to make entry under 19 U.S.C. §1484(a)(2)(B)

The 2026 customs enforcement order tracker carries the position of each directive, and the nonresident importer post covers the §141.18 conditions the new rule builds on. Tell us what you import and how your entries are filed today, and we’ll show you where you stand: see if you qualify or write to ship@iorusa.com.

Sources

• CBP, Heightened Requirements for Foreign Importers of Record, interim final rule, 91 FR 69977, November 6, 2026
• Public inspection copy of the rule, FR Doc. 2026-22735
• Executive Order 14411, Strengthening Customs Enforcement, 91 FR 35125, June 10, 2026
• 19 U.S.C. §1484, entry of merchandise
• 19 C.F.R. §141.18, entry by nonresident corporation
• 6 U.S.C. §961, Customs Trade Partnership Against Terrorism