U.S. Customs Issues Interim Final Rule Updating Requirements for Importers of Record

On Nov. 6, 2026, U.S. Customs and Border Protection issued an interim final rule (the Rule) entitled “Heightened Requirements for Foreign Importers of Record,” implementing Section 2 of Executive Order 14411, “Strengthening Customs Enforcement,” which President Donald Trump signed on June 3, 2026. The Rule, among other things, places new restrictions on certain non-resident importers and revises the definition of “U.S. importer.” It will become effective 60 days after publication, on Jan. 5, 2027.

The Rule establishes a new regulatory framework distinguishing U.S. importers of record (IOR) from “foreign” IORs, and lays out the following criteria for determining whether an importer qualifies as a U.S. IOR or is otherwise considered a foreign IOR:

• An individual will qualify as a U.S. IOR if the individual is a U.S. citizen or lawful permanent resident.
• An entity may qualify as a U.S. IOR if it is organized under the laws of the United States, is located in the United States, and maintains at all times:

–      at least 51% of the beneficial owner(s) are U.S. citizens or lawful permanent residents and have control of the entity; or

–      direct ownership of a significant amount of unencumbered real property in the United States.

To verify that an entity is “located” in the United States, CBP will take into account, among other considerations, the size and scale of the overall operations of the entity and whether it is an instrumentality of a foreign manufacturer without a substantial presence in the United States. The Rule lays out criteria that CBP may consider, including whether:

1. the entity’s principal place of business is in the United States;
2. the entity has a physical presence in the United States where substantial business transactions are conducted, such as paying employees, generating revenue, or operating retail locations;
3. the entity maintains sufficient unencumbered physical domestic assets;
4. the entity directly owns a sufficient amount of unencumbered real property in the United States;
5. the entity’s gross sales generally exceed its cost of goods sold, and the entity is structured in a manner that it is anticipated to generate its own profit; and
6. the entity is sufficiently capitalized.
   

The Rule defines a “beneficial owner” as an individual who directly or indirectly owns or controls no less than 25% of the ownership interests of the entity, including in situations where there are multiple layers of entity ownership between the individual and the entity.

“Physical domestic assets” are defined under the Rule as cash deposited in a U.S. bank account; U.S. Treasury bonds; and real property, inventory, machinery, and/or equipment that is physically located in the United States.

Importers claiming U.S. IOR status will be required to declare such status at the time of entry and entry summary; CBP is updating Forms 3461 and 7501 accordingly. Brokers will also be required to confirm whether the importer qualifies as a U.S. or foreign importer and must comply with the new regulations by May 6, 2027.

Under the Rule, CBP will only allow a foreign IOR to serve as the IOR if the foreign IOR is Customs Trade Partnership Against Terrorism (CTPAT) validated. If a foreign IOR is not CTPAT validated, it must designate a CTPAT-validated and licensed customs broker to make entry on its behalf.

Currently, only Canadian entities may qualify as CTPAT foreign IORs. Interestingly, only 643 brokers, out of 3,100, are CTPAT validated.

The Rule will also allow CBP to impose enforcement measures against importers that inaccurately claim U.S. IOR status, including delay of delivery of merchandise.

Unlike the June 2026 executive order, which proposed prohibiting foreign IORs from entering informal shipments, the new rule will continue to allow such informal entries for foreign IORs who otherwise qualify under the new import framework. CBP will continue to monitor informal entries and may change its position and prohibit informal entries for consumption filed by a foreign IOR or a broker acting on the foreign IOR’s behalf. The Rule takes effect on Jan. 5, 2027, which is also the deadline for public comments.

Regulatory and Enforcement Environment

The Rule reiterates a central principle of the second Trump administration: “Economic security is national security, and customs law enforcement is essential to protect the economy of the United States and the health and safety of the American people.” The Rule is designed to give CBP additional tools to rectify insufficient enforcement mechanisms. Importers may see increased enforcement on the classification, valuation, and country of origin declarations for their shipments.

Considerations for Importers

In light of the Rule, importers may wish to determine whether the importing entity qualifies as a U.S. or foreign IOR under the Rule’s new requirements.

U.S. IORs should consider gathering documentation supporting their U.S. status, including relevant ownership, organizational, and U.S. asset records. Foreign IORs may wish to confirm that their customs brokers are both licensed and CTPAT-validated.