On November 6, 2026, US Customs and Border Protection (CBP) issued an interim final rule strengthening the requirements for companies acting as importers of record (IORs), particularly foreign-owned companies and foreign IORs. The rule, which implements Executive Order 14411, “Strengthening Customs Enforcement,” will take effect January 5, 2027. Comments from stakeholders are also due January 5, 2027.
Summary
The interim final rule introduces significantly stricter criteria for entities to qualify as US IORs. Under the new framework, an entity qualifies as a US IOR only if it is:
- located in the United States,
- organized under US law, and
- either maintains at least 51% beneficial ownership by US citizens or lawful permanent residents who control the entity, or directly owns a significant amount of unencumbered US real property.
An IOR that does not meet these requirements will be defined as a foreign IOR. This means that US incorporation and a US address alone will no longer be sufficient to qualify as a US IOR.
Based on the interim rule, CBP will consider numerous factors in determining whether an importer satisfies the first requirement (i.e., located in the United States) including: whether its principal place of business is in the United States, whether it has a physical presence in the United States where substantial business is conducted, whether it maintains substantial assets in the United States, whether it owns a significant amount of unencumbered real property in the United States, whether it is structured in a manner that it is anticipated to generate its own profit, and whether it is sufficiently capitalized.
The rule also imposes new requirements on foreign IORs, stipulating that CTPAT status will be critical for foreign IORs to be able to import goods into the United States. A foreign IOR that is validated under CBP’s Customs-Trade Partnership Against Terrorism (CTPAT) program (and has the right to make entry) may continue to enter merchandise itself. However, foreign IORs that are not CTPAT-validated will generally be required to import merchandise through a licensed, CTPAT-validated customs broker who will act as IOR. These requirements will apply both to formal and informal consumption entries.
Customs brokers will also face new verification, due diligence and documentation obligations. Brokers will need to obtain and review supporting documentation about their clients before declaring that they qualify as US IORs. Such documentation may address proof of citizenship or lawful permanent residence, corporate charters, financial statements and records, purchase receipts, or documents of title. Brokers will be required to retain US IOR verification records for five years and conduct verifications on an ongoing basis during the broker-IOR relationship.
Key Takeaways for Importers
Companies should begin preparing now by:
- Reviewing each entity currently acting as IOR to determine whether the entity continues to meet the updated US IOR standard.
- Identifying foreign IORs and confirming whether they or their customs brokers are CTPAT-validated.
- Gathering documentation supporting US ownership, physical operations, assets, capitalization, profitability, and real-property ownership in the United States, as applicable.
- Coordinating with customs brokers on verification procedures, powers of attorney, CBP Form 5106 information, and the new entry requirements.
- Submitting comments on the interim final rule by January 5, 2027, particularly where the new ownership, documentation, or broker requirements could disrupt existing import structures and/or the companies are interested in sharing opinions on the interim final rule and how CBP should implement enhanced requirements for entities to act as IORs for entering merchandise into the United States.
