U.S. Customs and Border Protection (CBP) has issued an Interim Final Rule implementing portions of Executive Order 14411, Strengthening Customs Enforcement. The new rule establishes additional qualifications for determining whether an importer of record (IOR) is considered a U.S. or foreign importer and introduces new requirements for foreign IORs.

The most significant immediate change is that foreign IORs must either be CTPAT validated themselves or utilize a CTPAT-validated licensed customs broker.

What Qualifies as a Foreign Importer of Record?

Under the new rule, a U.S. IOR must meet specific qualifications:

  • Individuals: Must be U.S. citizens or lawful permanent residents.
  • Businesses: Must be organized under U.S. law, located in the United States, and meet at least one of the following criteria:
    • At least 51% beneficial ownership and control by U.S. citizens or lawful permanent residents.
    • Direct ownership of a significant amount of unencumbered U.S. real property.

Importers that do not meet these qualifications will be considered foreign IORs, even if they are incorporated in the United States.

New CTPAT Requirements for Foreign IORs

Effective January 5, 2027, foreign IORs will be subject to the following requirements:

  • Foreign IORs that are CTPAT validated may continue making entry themselves, if otherwise authorized, or utilize any licensed customs broker.
  • Foreign IORs that are not CTPAT validated must utilize a CTPAT-validated licensed customs broker to make entry.

Currently, CBP indicates that only Canadian foreign IORs are eligible for CTPAT validation as importers. As a result, most other foreign IORs will need to rely on a CTPAT-validated customs broker.

Shapiro is a CTPAT-certified customs broker, allowing us to continue supporting foreign IORs under these new requirements.

Learn more about the program in our guide: What You Need to Know About CTPAT.  We can assist foreign importers in CTPAT validation if they wish to explore the program further. 

What About U.S. Importers of Record?

While the rule introduces new qualification, verification, and recordkeeping requirements affecting U.S. IORs, additional CBP guidance regarding implementation and enforcement procedures is still anticipated.

In the meantime, Shapiro strongly encourages all importers to routinely review their importer information within the ACE Portal to ensure all data elements are current and accurate.

Importers should pay particular attention to their legal business name, address, importer identification information, contacts, and other details maintained with CBP.

Maintaining accurate importer records is an important compliance responsibility and will help minimize potential disruptions as CBP continues implementing its enhanced importer verification requirements.

What Happens Next?

The Interim Final Rule is scheduled to take effect January 5, 2027. Shapiro will continue monitoring CBP’s implementation guidance and provide updates as additional requirements and enforcement procedures are clarified.

For questions about these changes or assistance reviewing your importer information, please contact Shapiro’s Compliance Team at [email protected].