On November 6, 2026, US Customs and Border Protection (CBP) published an interim final rule establishing new requirements for foreign Importers of Record. The rule implements Section 2 of Executive Order 14411, “Strengthening Customs Enforcement,” and is intended to increase accountability, improve enforcement against noncompliance, and level the playing field for US importers. This rule becomes effective January 5, 2027.

Key Changes

CBP's announcement identifies three key elements:

1) CTPAT Requirement for Foreign IORs

Foreign Importers of Record (IOR) may not make formal or informal entry of merchandise for consumption unless they are themselves CTPAT-validated or they use a CTPAT-validated licensed customs broker.

2) New Definitions

The rule creates a new regulatory framework (19 CFR Part 110) that defines “US Importer of Record” and related terms such as “beneficial owner.” To qualify as a US Importer of Record, the individual needs to be a US citizen or lawful permanent resident. Entities must be organized under US law, located in the United States, and at all times maintain either (i) at least 51% beneficial ownership by US citizens or lawful permanent residents who control the entity, or (ii) direct ownership of a significant amount of unencumbered real property in the United States. If you do not fall into one of these categories, you would be classified as a Foreign IOR.

3) Broker Due-Diligence Duty

Licensed customs brokers must now verify whether their clients qualify as US IORs before filing the new declaration that will appear on the entry forms. Brokers are going to be expected to review supporting documentation and retain verification records for five years. While brokers can request delayed compliance by the January 5, 2027, effective date, compliance is expected by May 6, 2027. 

Practical Considerations

Companies and brokers that import or clear goods for consumption should begin reviewing their current arrangements against the rule. Foreign companies that serve as IOR will need their own CTPAT validation or a CTPAT-validated customs broker by January 5, 2027. US entities with multi-tier or foreign ownership should confirm whether they meet the new definition of “US Importer of Record.” 

Custom brokers will need processes and documentation practices to support the verification requirement. Early coordination between importers and their brokers can help identify any gaps in ownership records, corporate documents, or CTPAT status before the January 5, 2027, deadline. Inaccurate declarations of US IOR status can result in live-entry requirements and tholos of immediate-delivery privileges. Additionally, brokers that fail to meet the new duties will likely face potential penalties under the existing statutory authorities.

The rule is an interim final rule, so the comment period remains open through January 5, 2027. Companies that want to understand how the changes may affect their specific import structure, ownership profile, or broker relationship can contact Jones Walker for a practical assessment of next steps. 

This summary is for general informational purposes only and does not constitute legal advice.