Starting January 5, 2027, a foreign importer of record (IOR) can only bring goods into the U.S. if it is validated under the Customs Trade Partnership Against Terrorism (CTPAT) program or files through a CTPAT-validated customs broker. U.S. Customs and Border Protection (CBP) set this out in an interim final rule published November 6, 2026, which also tightens who qualifies as a U.S. importer. Here’s what the rule says, who it affects, and what to check now.
An importer of record is the party legally responsible for an import: filing the customs entry, paying duties and taxes, and making sure the goods meet U.S. law. The rule draws a new, stricter line between U.S. and foreign IORs, and many companies that consider themselves U.S. importers today, including some with a U.S. subsidiary and a U.S. address, may not meet it.
What the rule requires
The rule, Heightened Requirements for Foreign Importers of Record, implements Section 2 of Executive Order 14411, Strengthening Customs Enforcement. It gives a foreign IOR two ways to keep importing:
- Become CTPAT validated. A validated foreign IOR can file entries itself or use any licensed broker. Only Canadian importers are currently eligible for CTPAT validation, so this path is closed to most foreign IORs.
- File through a CTPAT-validated customs broker. The broker makes entry for the foreign IOR, or acts as the IOR itself. If the foreign party isn’t the owner or purchaser of the goods, the broker must act as IOR.
CTPAT certification isn’t enough on either path. Membership works in two steps: a company is first certified, once CBP accepts its security profile, and is validated only after CBP verifies those security measures, which can include on-site visits. The rule requires validation. Using a validated broker also doesn’t pass CTPAT benefits, such as fewer exams, on to the importer.
The rule applies to all formal entries and to informal entries filed on CBP Forms 3461 or 7501. The executive order called for banning informal entries by foreign IORs outright. CBP didn’t adopt that ban, but says it will monitor these entries and may prohibit them later.
How CBP decides who counts as a U.S. importer of record
Any IOR that doesn’t meet the U.S. IOR definition is a foreign IOR. To qualify as a U.S. IOR:
- An individual must be a U.S. citizen or lawful permanent resident.
- A company must be organized under U.S. law, located in the U.S., and at all times meet one of two tests: at least 51% of its beneficial owners are U.S. citizens or permanent residents who control it, or it directly owns a significant amount of unencumbered U.S. real property.
A beneficial owner is a person who exercises substantial control over the company or owns at least 25% of it. CBP looks through holding companies to the people at the top, so a U.S. subsidiary of a foreign parent can still be a foreign IOR.
When verifying a company’s status, including whether it is located in the U.S., CBP may weigh criteria such as:
- A principal place of business in the U.S.
- A physical presence with real activity, such as paid employees, revenue or retail locations
- U.S. bank deposits, Treasury bonds, and real property, inventory or equipment located in the U.S. (accounts receivable don’t count)
- Gross sales that generally exceed cost of goods sold
- Sufficient capitalization
From January 5, every entry and entry summary must declare whether the IOR qualifies as a U.S. IOR. A false declaration can lead CBP to require live entry, meaning duties are paid before goods are released, and to end immediate-delivery privileges.
What changes for customs brokers
Brokers take on new checks and more penalty exposure, which importers will feel during onboarding:
- Verification before declaring. Before declaring a client as a U.S. IOR, a broker must request and review records such as proof of citizenship, corporate charters and financial statements. If the client turns out to be a foreign IOR and the broker isn’t CTPAT validated, the broker must stop filing for the foreign IOR.
- Five-year recordkeeping. Brokers must keep those verification records for five years.
- Power of attorney every time. A broker needs a signed power of attorney even when it acts as the IOR itself.
- Higher penalty risk. CBP can now pursue negligent brokers under 19 U.S.C. 1592, where penalties can reach the domestic value of the goods. Previously, most such cases fell under a statute capped at $30,000.
Brokers can make a one-time request for more time on the verification duty only. Requests are due January 5, 2027, and all brokers must fully comply by May 6, 2027. The extension doesn’t delay the foreign IOR requirements.
Why CBP is making the change
CBP says foreign IORs are hard to collect from because their owners and assets sit outside the U.S., and some reappear as new shell companies after enforcement. Non-CTPAT foreign IORs had $1.01 billion in unpaid bills as of February 2026. CBP recovered 3.1% of audited losses from foreign IORs, against 15.2% from U.S. IORs.
The rule’s own data, covering active importers and brokers from October 2020 to February 2026, shows who will need to change:
With roughly four in five brokers not validated, a foreign IOR shouldn’t assume its current broker qualifies.
What to do now
CBP issued this as an interim final rule, so it takes effect January 5 even while CBP reviews comments and may revise it later.
- Find out which company is listed as IOR on your U.S. entries.
- Check that company against the U.S. IOR definition: where it’s organized and located, who its beneficial owners are, and what U.S. assets it holds.
- If it’s a foreign IOR, ask your broker whether it is CTPAT validated, not just certified. If it isn’t, line up one that is. You can check in CBP’s CTPAT Validated Customs Broker Listing, which you can search by broker name or filer code.
- Have ownership and financial records ready, since brokers will ask for them before declaring you a U.S. IOR. If you’ll import in your own name, line up a continuous entry bond early.
- To weigh in, submit comments on docket USCBP-2026-1387 at regulations.gov by January 5, 2027.
How Passport Can Help
The rule matters most when inventory is imported into the U.S. in bulk, which is the setup for in-country fulfillment: a brand ships stock to a U.S. warehouse before goods are sold to US buyers.
On in-country imports, Passport acts as importer of record and qualifies as a U.S. importer under the new definition.
- If you import as your own IOR: check whether you meet the U.S. IOR definition. If you don’t, you’ll need a CTPAT-validated broker by January 5, 2027.
- If Passport acts as your IOR: No action is needed on your side; we’ll reach out if anything changes.
On cross-border orders shipped directly to shoppers in the U.S., the shopper is typically the importer of record.
Questions about your setup? Contact your Passport account manager.
Authored by Thomas Taggart
VP of Global Trade | Passport
Thomas Taggart is a cross-border commerce leader with more than 20 years of experience in international shipping and regulatory affairs. As the Head of Global Trade, Thomas helps ecommerce brands go global by simplifying international trade, tax, and product compliance issues. Prior to Passport, he brought international shipping solutions to market through multiple roles in UPS’s product development organization.
Frequently asked questions
When does CBP’s foreign importer of record rule take effect?
The rule takes effect January 5, 2027. CBP published it in the Federal Register on November 6, 2026, as an interim final rule, and public comments are due the same day it takes effect. Customs brokers granted extra time on the new verification duty have until May 6, 2027.
What is a foreign importer of record?
A foreign importer of record is any importer that doesn’t meet CBP’s new definition of a U.S. importer of record. A company qualifies as a U.S. IOR only if it is organized and located in the U.S. and is at least 51% owned and controlled by U.S. citizens or permanent residents, or directly owns significant unencumbered U.S. real property.
Does having a U.S. subsidiary or EIN make my company a U.S. importer of record?
No. A U.S. subsidiary, U.S. address or EIN doesn’t make a company a U.S. IOR on its own. CBP looks through ownership layers to the people who own or control the company, and can check for a real U.S. presence such as employees, revenue and assets.
Can a foreign importer of record still import into the U.S.?
Yes. A foreign IOR can keep importing if it is CTPAT validated or if it files entries through a customs broker that is CTPAT validated. A foreign IOR with neither can’t make entry after January 5, 2027.
Can my company get CTPAT validated as a foreign importer?
Only if it is Canadian. CBP says Canadian importers are currently the only foreign importers eligible for CTPAT validation, so most foreign IORs will need a CTPAT-validated customs broker. CBP’s CTPAT rules limit importer membership to U.S. importers and non-resident Canadian importers, and require a staffed business office in the U.S. or Canada.
What’s the difference between CTPAT certified and CTPAT validated?
Certification comes first: a company applies and CBP accepts its security profile. Validation comes after CBP verifies those security measures are in place, which can include site visits. The new rule requires validation, so a certified-only broker won’t qualify.
How do I know if my customs broker is CTPAT validated?
Search CBP’s CTPAT Validated Customs Broker Listing by your broker’s name or filer code. If your broker isn’t listed, it isn’t validated, even if it’s CTPAT certified. Only 643 of 3,100 active brokers were validated in CBP’s data, so it’s worth checking before January 5.
Do I get CTPAT benefits if my broker is CTPAT validated?
No. Filing through a CTPAT-validated broker lets a foreign IOR keep importing, but it doesn’t give the importer CTPAT benefits such as fewer exams.
Does the rule apply to informal entries?
Yes, for informal entries filed on CBP Forms 3461 or 7501, as well as all formal entries. CBP chose not to ban informal entries by foreign IORs, as the executive order directed, but says it may do so if it sees risks.
What happens if an importer wrongly declares itself a U.S. importer of record?
CBP can require live entry, meaning all estimated duties, taxes and fees must be paid before goods are released. It can also end the importer’s immediate-delivery privileges. Brokers who file inaccurate declarations face penalties too.
Is this the same as CBP’s supply chain visibility proposal?
No. That’s a separate advance notice of proposed rulemaking published September 2, 2026, under Section 3 of the same executive order. It asks for comments, due December 1, 2026, on collecting foreign export documents and better identifying manufacturers. It doesn’t create requirements yet.
Can the rule still change?
Yes. As an interim final rule, it takes effect January 5, 2027, but CBP is taking comments until that date and may revise it in a final rule.
Does this rule affect Passport customers?
For most Passport customers, no action is needed. On cross-border orders, the U.S. shopper is typically the importer of record, and on in-country imports, Passport acts as importer of record and qualifies as a U.S. importer under the new definition.
Sources
- Heightened Requirements for Foreign Importers of Record, CBP interim final rule (CBP Dec. 26-19), Federal Register, November 6, 2026 (public inspection PDF)
- Heightened Import Disclosures for Supply Chain Visibility, CBP advance notice of proposed rulemaking, September 2, 2026
- CBP CTPAT Validated Customs Broker Listing