TITLE: New CBP Rule for Foreign Importers of Record: What Changes on January 5, 2027
From January 5, 2027, many foreign businesses importing goods into the United States will need to use a customs broker validated through CBP’s Customs Trade Partnership Against Terrorism (CTPAT) program, or qualify for CTPAT validation themselves. If your business, marketplace, or logistics partner appears as the importer of record (IOR), confirm your filing route before the new requirement takes effect.
U.S. Customs and Border Protection (CBP) issued an interim final rule on November 5, 2026, titled “Heightened Requirements for Foreign Importers of Record”. The rule implements Executive Order 14411, “Strengthening Customs Enforcement.” It is scheduled for publication in the Federal Register on November 6, 2026, and sets January 5, 2027, as both the effective date and the deadline for public comments.
Check whether your business is a foreign importer of record
The rule defines who can qualify as a U.S. IOR. An individual must be a U.S. citizen or lawful permanent resident. An entity must be organized under U.S. law and located in the United States, and must meet at least one of these tests:
- At least 51% of its beneficial ownership is held by qualifying U.S. persons who control the entity; or
- It directly owns a significant amount of unencumbered U.S. real property.
An IOR that does not meet this definition is treated as a foreign IOR. A U.S. address, U.S. employer identification number (EIN), or U.S. subsidiary alone does not establish U.S.-IOR status. For example, a U.S. subsidiary of a foreign parent that does not meet the ownership-and-control test and does not directly own significant unencumbered U.S. real property should plan as a foreign IOR.
Screen every entity that appears on your U.S. customs entries, rather than assuming your group’s U.S. presence settles the question. CBP’s interim final rule sets out the definitions and verification requirements.
Secure a compliant filing route before January 5
Beginning January 5, a foreign IOR may generally make consumption entries only if it is CTPAT-validated or uses a CTPAT-validated licensed customs broker to make entry. The requirement applies to both formal and informal entries.
For many international businesses, using a CTPAT-validated broker is the practical route. CTPAT eligibility is not open to every foreign company. CBP’s program categories include, among others, U.S. importers of record, non-resident Canadian importers, licensed U.S. customs brokers, and certain Mexican and Canadian manufacturers. Most other foreign IORs should not assume they can apply for validation.
Review the CBP CTPAT program information and ask your broker directly whether its validation is current. If your business might qualify for CTPAT, assess that route too, but keep a validated-broker option available while an application is pending.
Ask your broker about validation and onboarding now
Licensed customs brokers will have to verify a client’s qualification as a U.S. IOR before making the required declaration to CBP. They must retain verification records for five years. Brokers may request evidence of ownership, control, citizenship or residency, U.S. location, financial position, and other information relevant to the IOR determination.
As a result, expect more detailed onboarding and allow time to collect accurate supporting records. A broker may also decline a client if it cannot verify the client’s status or meet its own due diligence obligations.
Ask your current broker, in writing:
- Is the brokerage CTPAT-validated today?
- If not, has it requested delayed compliance, and what is its expected validation timeline?
- What ownership, financial, and supply-chain documents does it need from your business?
- Will it continue filing entries for each entity in your group after January 5?
A broker that has been granted delayed compliance must show good-faith efforts to comply during its grace period. All brokers are expected to be fully compliant by May 6, 2027. There is no equivalent grace-period mechanism for foreign IORs. Do not assume your broker’s delayed compliance protects your shipments or allows your entries to continue unchanged.
Review DDP shipments and identify who is the IOR
The IOR may not be the seller. On delivered-duty-paid (DDP) shipments, a marketplace, freight forwarder, or third-party logistics provider may take that role. The new rule makes it important to confirm exactly which entity will appear as IOR on entries filed from January 5 onward.
For each DDP route, document:
- The legal name and CBP identity details of the proposed IOR.
- Whether that party qualifies as a U.S. IOR or should be treated as a foreign IOR.
- Which broker will file the entry and whether it is CTPAT-validated.
- What happens to shipments already in transit if the current IOR or broker cannot file.
Do not leave these questions until goods are at the border. A change in who acts as IOR can affect entry procedures, documentation, and shipment timing.
Keep CBP entry duties separate from IRS obligations
This CBP rule concerns customs entry and broker requirements. It does not change federal tax filing obligations for a foreign-owned U.S. LLC or corporation. Those obligations are separate.
For example, some foreign-owned U.S. disregarded entities may have to file Form 5472 with a pro forma Form 1120 when filing requirements apply. The IRS instructions state that failure to file Form 5472 when required, or failure to maintain required records, can trigger a $25,000 penalty; additional penalties may apply if a failure continues after IRS notification. Check the IRS Form 5472 instructions for the applicable filing rules.
CBP has also emphasized accurate importer identity details. Its Form 5106 notice warns that inaccurate or incomplete IOR information may lead CBP to void an IOR number. Check that the names and details used for customs entries match current entity records.
International sellers should therefore manage import compliance and tax reporting as related operational responsibilities, but not confuse one with the other. An ecommerce accountant UK businesses rely on, alongside accurate ecommerce bookkeeping UK operations, can help keep business records organized; it does not replace the customs broker needed to file U.S. entries. For related background, read our guide to U.S. tax obligations for e-commerce sellers.
Use this checklist to prepare
Before the new rule takes effect:
- Screen each IOR entity against the U.S.-IOR definition, including ownership and control.
- Confirm your broker’s CTPAT status and request its response in writing.
- Line up a CTPAT-validated broker if your foreign IOR is not CTPAT-validated.
- Prepare onboarding documents and verify that Form 5106 information is accurate and current.
- Map every DDP shipment to the entity that will act as IOR from January 5, 2027.