New CBP Rule Changes Requirements for Foreign Importers of Record
Published: November 11, 2026
Starting January 5, 2027, foreign companies acting as Importer of Record (IOR) in the United States will face new customs requirements. Under a new U.S. Customs and Border Protection (CBP) rule, foreign IORs must either be validated through the Customs Trade Partnership Against Terrorism (CTPAT) program or appoint a CTPAT-validated licensed customs broker to handle their entries.
The rule also introduces stricter eligibility criteria for U.S. importers and additional verification responsibilities for customs brokers. For businesses shipping to the United States under Delivered Duty Paid (DDP) terms, working with overseas suppliers that act as their own IOR, or managing U.S. imports through a customs broker, these changes require attention before the new rules take effect.
Published in the Federal Register on November 6, 2026, the interim final rule gives businesses a limited preparation period to review their existing arrangements and prepare for the transition.
What the New CBP Rule Requires from Foreign Importers of Record
The new requirements implement Executive Order 14411, Strengthening Customs Enforcement, and amend several sections of U.S. customs regulations.
From January 5, 2027, foreign importers of record will have two ways to continue entering goods into the United States:
CTPAT-validated foreign IOR: A foreign importer that has obtained CTPAT validation can make eligible entries itself or appoint a licensed U.S. customs broker, whether CTPAT-validated or not.
Non-CTPAT-validated foreign IOR: A foreign importer that does not have CTPAT validation must appoint a licensed customs broker that is also CTPAT-validated to make entry on its behalf.
There is an additional requirement when the principal identified in the broker's Power of Attorney is neither the owner nor the purchaser of the merchandise. In this situation, the CTPAT-validated broker must act as the importer of record.
The rule covers formal entries and specified informal entries for which CBP Forms 3461 or 7501, or their electronic equivalents, are required.
A customs broker's license alone will no longer be sufficient for handling entries on behalf of non-CTPAT-validated foreign importers. Importantly, using a CTPAT-validated broker does not automatically give the foreign importer CTPAT membership or its associated benefits.
CTPAT Certified vs. CTPAT Validated: Why the Difference Matters
Companies should pay close attention to the distinction between CTPAT certification and validation.
CTPAT certification represents acceptance into the program following the applicable application and eligibility review. Validation involves an additional assessment by CBP to verify that the participant meets the program's applicable supply chain security requirements.
The new rule specifically requires CTPAT validation, not simply certification or application approval.
This distinction is particularly important when selecting a customs broker. Companies should confirm that their broker has achieved the required validated status rather than assuming that participation in CTPAT is sufficient.
According to CBP data cited by GHY International, only about 0.4% of foreign IORs are CTPAT-validated, while around 68% already work with CTPAT-validated brokers. The remaining 32% will need to switch brokers or become validated. GHY also notes that only Canadian IORs are currently eligible for CTPAT validation, so for most other foreign importers a CTPAT-validated broker is likely the most practical route.
Who Qualifies as a U.S. Importer of Record?
One of the most significant changes is the introduction of a more detailed definition of a U.S. importer of record under new 19 CFR Part 110.
An individual qualifies as a U.S. IOR if they are a U.S. citizen or lawful permanent resident.
For a business entity, incorporation in the United States alone is no longer sufficient. The company must be organized under U.S. law, located in the United States, and continuously meet at least one of the following conditions:
At least 51% of its beneficial ownership is held by U.S. citizens or lawful permanent residents who also have control of the entity.
The company directly owns a significant amount of unencumbered real property in the United States.
Anyone who does not meet these requirements is generally classified as a foreign IOR.
CBP may request supporting documents, including corporate formation records, financial statements, proof of citizenship or permanent residency, and property ownership documents.
The determination also considers the company's actual U.S. presence and business operations. Factors such as its principal place of business, physical operations, domestic assets, gross sales relative to cost of goods sold, and capitalization may be considered.
A company registered in the United States but ultimately owned and controlled abroad may therefore fail to qualify as a U.S. IOR.
What Changes for Customs Brokers and Import Entries?
The new rule places additional responsibilities on licensed customs brokers, particularly when determining whether a client qualifies as a U.S. importer of record.
Before declaring a client as a U.S. IOR, brokers must review the relevant ownership and eligibility criteria and verify the supporting information. They must also retain verification records for five years from the date of verification. A valid Power of Attorney is required even when the broker acts as the importer of record.
CBP is introducing new data fields on Forms 3461 and 7501 and their electronic equivalents to identify:
U.S. Importer of Record: Whether the importer or relevant principal meets the U.S. IOR eligibility requirements.
Acting on Behalf of: Whether the customs broker is acting as the IOR on behalf of a principal.
Principal on Power of Attorney: The principal's IOR number, such as an SSN, EIN or CBP-assigned number linked to its Form 5106, which a non-CTPAT-validated broker acting as the IOR must provide.
Starting January 5, 2027, the updated forms and electronic filing equivalents must be used for applicable entries and entry summaries.
If a broker that is not CTPAT-validated acts as the IOR for a client, it must identify the principal on the power of attorney, declare that the principal meets the U.S. IOR criteria, and provide the principal's IOR number or other Form 5106 identifier. The principal must have a Form 5106 on file.
If an importer, or a broker acting as the importer, declares U.S. IOR status inaccurately, CBP can require live entry and discontinue immediate delivery privileges, which can delay the release of shipments.
CBP has also revised its penalty guidelines for brokers: a broker that commits a violation of 19 U.S.C. 1592 may now face a penalty under that section, which can reach the domestic value of the merchandise. Previously, CBP generally used 19 U.S.C. 1641, with a $30,000 maximum.
Who Is Affected and What Should They Do?
The impact will vary depending on how each company currently manages its U.S. imports.
Business profile | Potential impact | Recommended action |
Foreign exporters shipping DDP | May need to change their customs broker or IOR arrangement | Confirm whether the current broker is CTPAT-validated |
Foreign companies acting as their own IOR | Must meet CTPAT validation requirements or use a validated broker | Review current IOR status and entry procedures |
U.S. importers working with foreign suppliers | Supplier arrangements may affect customs filing responsibilities and costs | Confirm who will act as IOR and who will file entries |
U.S.-registered companies with foreign ownership | May not automatically qualify as U.S. IORs | Review beneficial ownership, control and U.S. assets |
Customs brokers and freight forwarders | Face additional verification, documentation and compliance responsibilities | Review CTPAT status, internal procedures and client records |
How Could This Affect DDP Shipments?
The new requirements are particularly relevant for foreign exporters selling to U.S. customers under DDP Incoterms.
Under DDP, the seller assumes responsibility for arranging import clearance and paying applicable import duties and taxes. However, this commercial obligation does not automatically establish that the seller qualifies to act as a U.S. importer of record.
A foreign seller that currently acts as its own IOR may need to appoint a CTPAT-validated customs broker to handle its entries. This could affect:
Customs brokerage arrangements and service costs.
Import clearance procedures and documentation.
Contractual responsibilities between sellers and buyers.
Shipment planning and customs release timelines.
Some exporters may also consider whether DAP (Delivered at Place) is a more suitable alternative, with the U.S. buyer taking responsibility for import clearance. However, changing Incoterms does not automatically resolve IOR eligibility. The actual importer of record and customs filing arrangements must still comply with CBP requirements.
For this reason, exporters should review their commercial agreements and customs procedures together rather than treating the issue as a simple change in delivery terms.
Key Dates to Know
The transition period is relatively short, making early preparation important.
November 6, 2026: CBP publishes the interim final rule in the Federal Register.
January 5, 2027: New requirements take effect. Updated entry forms become mandatory, and the public comment period closes.
January 5, 2027: Deadline for licensed customs brokers to request delayed compliance with the applicable broker verification requirements.
May 6, 2027: All licensed customs brokers are expected to be fully compliant with the new broker requirements.
Delayed compliance applies only to the broker verification requirement. As we read the rule, it is not a general extension for foreign IORs, so ask your broker what an approved delay would mean for your entries. As an interim final rule, the details could also be adjusted after CBP reviews public comments.
Five Steps to Prepare Before January 5
Companies involved in U.S. imports should begin reviewing their current arrangements rather than waiting until the effective date.
Determine your IOR classification. Establish whether your company qualifies as a U.S. or foreign importer of record. Review ownership structures, control and U.S. business presence.
Verify your customs broker's CTPAT status. Ask your broker to confirm in writing whether it is CTPAT-validated and whether it can continue handling your entries under the new requirements.
Review your current IOR arrangements. Identify who is currently named as the importer of record, who files customs entries, and whether the relevant CBP Form 5106 information is accurate.
Revisit DDP agreements and commercial contracts. Clarify responsibilities for customs clearance, duties, taxes and potential changes in brokerage costs. Make sure the agreed IOR arrangement is operationally feasible.
Coordinate with your broker before the first affected shipment. Confirm the new entry data requirements, documentation and filing procedures to minimize the risk of customs delays or rejected entries.
The Movargo Perspective
The new CBP requirements go beyond a change in customs paperwork. They introduce a more demanding framework for determining who can act as an importer of record and how foreign companies can access the U.S. market.
For international exporters, particularly those operating under DDP terms, the choice of customs broker and the structure of the IOR arrangement will become increasingly important.
With a limited transition period, businesses should review their existing arrangements, verify broker qualifications and clarify responsibilities before the new requirements take effect.
At Movargo, we believe effective logistics planning starts with understanding regulatory changes before they affect shipments. If you are shipping to the United States, share your origin, destination, Incoterms and current IOR arrangement with our team. We can help you identify the operational points that need attention and coordinate with the relevant customs partners.
This article is intended for general informational purposes and does not constitute legal or customs advice. Companies should consult a licensed U.S. customs broker or qualified trade compliance professional regarding their specific circumstances.
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