WHAT’S THE LATEST

Effective Jan. 5, 2027, foreign importers of record (IORs) must either be validated in the Customs Trade Partnership Against Terrorism (CTPAT) program or use a CTPAT-validated licensed customs broker. SEKO Customs Brokerage, Inc. is a CTPAT-validated licensed customs broker and can continue to file entries as customs broker for clients classified as foreign IORs. SEKO does not act as IOR.

U.S. Customs and Border Protection (CBP) announced the new requirements in its interim final rule, Heightened Requirements for Foreign Importers of Record (91 FR 69977, Nov. 6, 2026), implementing Executive Order 14411. The rule also establishes a new test for who qualifies as a U.S. importer and requires an IOR status declaration on every entry.

WHAT WE KNOW

Who Qualifies as a U.S. Importer of Record

  • Individuals: U.S. citizens or lawful permanent residents.
  • Companies: Located in the U.S. (including Puerto Rico), organized under U.S. law, and at all times either (1) at least 51% owned and controlled by U.S. citizens or permanent residents, or (2) directly owning a significant amount of unencumbered U.S. real property.

Any IOR that does not meet these requirements is considered a foreign IOR. A U.S. incorporation, address, or EIN alone is not sufficient, meaning U.S. subsidiaries of foreign companies may be classified as foreign IORs.

Key Dates

  • Nov. 6, 2026: Rule published.
  • Jan. 5, 2027: Rule takes effect; public comments due.
  • May 6, 2027: Deadline for brokers to complete client verification.

Because this is an interim final rule, it takes effect Jan. 5, 2027, even though comments are accepted through that date. CBP may revise the rule following the comment period. Comments may be submitted through Regulations.gov under docket USCBP-2026-1387.

What Changes on Every Entry

  • Status declaration: Each entry and entry summary must state whether the IOR qualifies as a U.S. IOR using new data fields on CBP Forms 3461 and 7501 (CSMS #70381183).
  • Broker verification: Before declaring a client a U.S. IOR, SEKO must review supporting records, retain them for five years, and periodically re-verify the client’s status.  This applies to current and new clients. Expect requests for business registration, ownership records, proof of citizenship or residency, and evidence of U.S. assets.
  • Consequences: An inaccurate declaration may result in CBP requiring duty payment before release, revoking immediate delivery privileges, or pursuing penalties.

What This Means for Foreign Importers

  • Foreign IORs that are not CTPAT-validated must use a CTPAT-validated broker.
  • If the foreign party is not the owner or purchaser of the goods, the rule requires the broker to act as IOR. Because SEKO does not act as IOR, clients in that situation should arrange for the owner or purchaser to serve as IOR.
  • CTPAT validation takes months. Certification alone does not qualify, and CBP states Canadian importers are currently the only foreign IORs eligible.
  • The requirements apply to formal and informal entries. CBP may reject entries that do not comply.
  • U.S. buyers whose foreign suppliers act as IOR, including under delivered duty paid (DDP) terms, should confirm that their suppliers can comply.

SEKO'S GUIDANCE

To prepare for the Jan. 5, 2027 effective date, SEKO recommends that importers:

  1. Determine your IOR status. Confirm whether each importing entity qualifies as a U.S. or foreign IOR and gather supporting documentation.
  2. Review your CBP Form 5106. Confirm that your importer information is accurate and current.
  3. Confirm your power of attorney. Make sure SEKO has a current power of attorney on file. 
  4. Review foreign IOR arrangements. Identify shipments where a foreign supplier or other party serves as IOR, including shipments under DDP terms, and confirm that the arrangement will comply with the new requirements.
  5. Keep SEKO informed of changes. Notify SEKO of changes in ownership, location, or U.S. assets that could affect your IOR status.
  6. Contact SEKO before sending sensitive documents. SEKO can arrange for secure transfer of documentation and discuss shipments arriving on or after Jan. 5, 2027.

SEKO continues to monitor CBP’s implementation of these requirements. For questions or assistance determining how the requirements may affect your imports, please contact your SEKO representative or email hello@sekologistics.com.

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