On November 6, 2026, U.S. Customs and Border Protection published an interim final rule called "Heightened Requirements for Foreign Importers of Record" (91 FR 69977). It takes effect on January 5, 2027.
From that date:
Every importer of record is sorted into one of two groups: a U.S. importer of record or a foreign importer of record.
A foreign importer of record can only enter goods if it is CTPAT validated, or if it uses a licensed customs broker that is CTPAT validated.
Every entry and entry summary must state whether the importer is a U.S. importer of record.
CBP can reject entries that do not meet the new conditions.
If you are a U.S. company importing under your own name and EIN, the main change is a new declaration on your entries and a round of paperwork from your broker. If your goods arrive on supplier-arranged DDP terms, the change is much bigger, because the party clearing your freight may no longer be allowed to.
Key dates
Date | What happens |
|---|---|
June 3, 2026 | Executive Order 14411, "Strengthening Customs Enforcement," is signed |
November 6, 2026 | Interim final rule published in the Federal Register (91 FR 69977); CBP issues CSMS #70381183 on the form changes |
January 5, 2027 | Rule takes effect; public comments due (docket USCBP-2026-1387); last day for brokers to request delayed compliance on client verification |
May 6, 2027 | Outside date for brokers granted delayed compliance on verification |
The broker extension covers only the broker's verification duty. It does not delay the restriction on foreign importers of record.
Who counts as a U.S. importer of record
The rule creates a new 19 CFR Part 110 with a two-part test.
Individuals. You qualify if you are a U.S. citizen or lawful permanent resident.
Companies. An entity must be organized under U.S. law, be located in the United States, and at all times meet one of these:
Ownership test. At least 51% of its beneficial owners are U.S. citizens or lawful permanent residents who control the entity. A beneficial owner is a natural person who exercises substantial control or holds at least 25% of the ownership interests, and CBP looks through holding companies to the people behind them.
Real property test. The entity directly owns a significant amount of unencumbered real property in the United States. The rule does not put a dollar figure on "significant."
Anyone who does not meet the test is a foreign importer of record. A U.S. mailing address or a state filing is not enough by itself. When CBP checks whether a company is really located here, it can look at where the business is run from, whether it has real operations and employees, its physical assets in the U.S. (accounts receivable do not count), whether it earns its own profit, and how well it is capitalized.
This is the part that reaches past obvious foreign sellers. A U.S. subsidiary that is foreign-owned, leases its space and owns no real estate may land on the foreign side of the line. Have that conversation with your customs broker or trade counsel before January.
What a foreign importer of record must do
A foreign importer of record has two routes:
Be CTPAT validated itself. Validation is a higher bar than applying or being certified, because CBP confirms the security measures on site. Trade lawyers reading the rule note that, among nonresident importers, only Canadian ones are currently eligible for the program, so most foreign importers cannot take this route.
Use a CTPAT validated customs broker. CBP's own count is 643 validated brokers out of roughly 3,100 active ones, about 21%.
There is a further condition that matters for DDP. If the foreign party is not the owner or purchaser of the goods, the validated broker must act as the importer of record in its own name. That puts the broker's bond and liability on the line, and few brokers will do that for a party they cannot vet.
Why CBP did this
CBP's reasoning is about collections. When an importer of record has no people or assets in the United States, there is little to pursue when duties are underpaid. In the rule, CBP reports recovering 3.1% of the revenue owed by non-CTPAT foreign importers of record, against 15.2% from U.S. importers. It counts 187,871 foreign importers of record, about 16% of all active importers, and estimates that about a third of them currently have no compliant path to entry.
What changes on every entry
CBP's message to the trade (CSMS #70381183) adds three data fields to CBP Form 3461 and CBP Form 7501 and their electronic versions:
U.S. Importer of Record: Y or N.
Acting on behalf of: flags a broker listed as both filer and importer of record.
Principal on Power of Attorney: the principal's importer number when a non-CTPAT broker acts as importer of record.
Before a broker can answer Y for you, it has to ask for and review records that support the answer, such as formation documents, ownership information, financial statements and property titles, and keep them for five years. Expect that request soon.
A wrong answer is expensive. CBP can put the importer on live entry, which means duties are paid before the cargo is released, and can pull immediate delivery privileges. An inaccurate declaration can also be treated as a false statement under 19 U.S.C. 1592.
Why DDP from China is the most exposed
On a typical low-priced DDP shipment, the overseas seller or its forwarder arranges U.S. customs clearance, often through an importer of record with no real presence in the United States. We covered how that model works, and who carries the liability, in DDP From China: Why the Rates Are So Low, and Who Actually Pays When CBP Catches It.
From January 5, that importer of record needs a CTPAT validated broker, and where it does not own or buy the goods, the broker has to step in as importer of record itself. If no broker will, the entry can be rejected and the container sits at the terminal while storage and per diem charges build. The U.S. buyer is the one waiting on the freight.
One detail to watch: the executive order called for barring foreign importers of record from informal entry. CBP did not adopt that in this rule, but said it will monitor those entries and may add the ban later.
What U.S. importers should do before January 5
Find out who the importer of record is on your shipments. Ask your supplier or forwarder for the entry summary (CBP Form 7501). If the name on it is not yours, you are relying on someone else's status.
Run your own company through the test. Chart ownership down to natural persons and confirm citizenship or permanent residence, control and the 51% threshold. If you are foreign-owned, check the real property route.
Get your records to your broker early. Brokers will be collecting documents from every client at once in December.
If you are on the foreign side of the line, confirm your broker is CTPAT validated, and ask directly whether it will keep filing for you after January 5.
Move DDP purchases to terms you control. Buying FOB and importing under your own name puts the classification, value and duty payment in your hands. See FOB vs DDP: Why Taking Control of Freight Can Save You Money.
Re-run your landed cost with duties included. A DDP price that looked cheap often left duty out. The Gateway tariff calculator shows the duty owed by HTS code and origin, and the guide to lowering import duties legally covers the options that hold up.
Frequently asked questions
When does the foreign importer of record rule take effect? January 5, 2027, which is 60 days after publication in the Federal Register on November 6, 2026.
Does the rule affect U.S. companies? Yes. Every importer must be declared as a U.S. importer of record or not on each entry, and brokers must verify that status before filing.
Is a Delaware LLC with an overseas owner a U.S. importer of record? Not automatically. It must be located in the United States and meet either the 51% ownership test or the real property test. Otherwise it is a foreign importer of record.
Can a foreign company still be the importer of record? Yes, if it is CTPAT validated or uses a CTPAT validated licensed customs broker. If it does not own or purchase the goods, the validated broker must act as importer of record.
Does this end DDP shipping from China? No, but it removes the easiest way to do it. DDP still works when the entry is made by a qualified importer of record or a validated broker willing to take on that role.
Can the rule still change? It is an interim final rule, so it takes effect while CBP collects comments through January 5, 2027. Plan around the text as published.
How Gateway helps
Gateway Lines is an FMC-licensed NVOCC and ocean freight forwarder. We move your freight on terms where you are the importer of record: ocean freight from origin, customs clearance coordinated with a licensed customs broker, cargo insurance and delivery, with the duty shown up front. Open a free account to see rates and price a shipment, and follow the Tariff Radar for U.S. import policy changes as they are published.
This article is general information, not legal advice. Whether a specific company qualifies as a U.S. importer of record depends on its facts and is decided by CBP.
Sources
U.S. Customs and Border Protection, "Heightened Requirements for Foreign Importers of Record," interim final rule, 91 FR 69977, November 6, 2026 (FR Doc. 2026-22735; CBP Dec. 26-19; docket USCBP-2026-1387): https://www.federalregister.gov/d/2026-22735
CBP, CSMS #70381183, "Updates to CBP Form 3461 and CBP Form 7501, and their Electronic Equivalents," November 6, 2026: https://content.govdelivery.com/accounts/USDHSCBP/bulletins/431ee7f
CBP, Strengthening Customs Enforcement implementation page: https://www.cbp.gov/trade/strengthening-customs-enforcement
Executive Order 14411, "Strengthening Customs Enforcement," June 3, 2026: https://www.federalregister.gov/documents/2026/06/10/2026-11595/strengthening-customs-enforcement
Gateway Lines Tariff Radar: https://tariff.gatewaylines.com/tariff-radar