CBP published an interim final rule on November 6 that requires every importer of record (IOR) to determine whether it qualifies as a “U.S.” importer under an ownership-and-assets test. The rule follows Executive Order 14411, Strengthening Customs Enforcement, which the president signed on June 3. It applies to formal entries and to informal entries filed on CBP Forms 3461 or 7501. Each entry and entry summary must declare the importer’s U.S. status, and customs brokers must verify each client’s status.
Who counts as a U.S. importer
An entity must be organized under U.S. law and located in the United States. It must also meet one of two tests at all times. The first is that at least 51% of its beneficial owners are U.S. citizens or lawful permanent residents who control the entity. The second is that it directly owns a significant amount of unencumbered U.S. real property.
A beneficial owner is a natural person who owns or controls at least 25% of the entity, or who exercises substantial control, such as serving as a senior officer. Unencumbered U.S. assets include cash in a U.S. bank account, U.S. Treasury bonds, and real property, inventory, machinery and equipment located in the United States. Receivables are excluded. An importer that does not meet the test is a foreign IOR. Existing references to “nonresident importers” in CBP regulations are unchanged.
What foreign importers of record face
A foreign IOR may enter goods only if it is CTPAT-validated or uses a CTPAT-validated licensed customs broker. Using a validated broker does not give the importer CTPAT benefits. If a U.S.-status declaration is inaccurate, CBP can require payment of estimated duties before release and withdraw immediate delivery privileges.
Dates
Importer declarations begin on January 5, 2027. Full broker compliance is expected by May 6, 2027, though brokers may ask for a delay by the effective date. Public comments, and broker requests for delayed compliance, are due January 5, 2027.
What the rule leaves out
The executive order directed a ban on informal entries by foreign importers. The rule does not include one. Informal entries by foreign IORs remain subject to the CTPAT requirement, and CBP is monitoring them. It asked for comment on whether to prohibit them in future regulations.
For importers, the practical question is whether the entity on the entry meets the test. Companies that use a foreign importer-of-record structure should check it against the ownership and asset definitions before January. Ownership records and U.S. asset documentation are what the declaration will rest on.
If you want to talk through your importer-of-record setup, reach out to our team. More trade compliance updates at www.shiptech.com/blog