US Customs and Border Protection Tightens Customs Requirements

Key Takeaways: 

• Starting Jan. 5, 2027, U.S. Customs and Border Protection requires foreign importers of record to hold CTPAT validation or use a CTPAT-validated customs broker under Executive Order 14411.
• A U.S. address and an Employer Identification Number no longer qualify a company as a U.S. importer of record; CBP now requires a U.S. organization, U.S. location, and either 51 percent U.S. beneficial ownership or direct ownership of significant unencumbered U.S. real property.
• Under CBP’s interim final rule, customs brokers must verify client eligibility before filing importer declarations, keep records for five years, and reach full compliance by May 6, 2027.

A U.S. mailing address used to be enough to call yourself a U.S. importer. That changes in January.

U.S. Customs and Border Protection published an interim final rule on Nov. 6, 2026, implementing Executive Order 14411, “Strengthening Customs Enforcement,” according to the Federal Register notice. The rule rewrites who counts as a U.S. importer of record and who gets treated as foreign. It hands customs brokers new verification duties they can’t skip.

What No Longer Counts as a U.S. Address?

Under the old system, a foreign company could register with CBP using a mailing address or an Employer Identification Number and operate as if it were domestic. CBP’s Nov. 5, 2026 announcement makes clear that approach won’t survive the new rule.

To qualify as a U.S. importer of record going forward, a company must be organized under U.S. law and located in the United States, including Puerto Rico. It must also meet one of two tests: at least 51 percent beneficial ownership by U.S. citizens or lawful permanent residents, or direct ownership of significant unencumbered U.S. real property. Individuals face a simpler bar: citizenship or lawful permanent residence.

CBP says it will weigh factors like principal place of business, physical operations, capitalization, and whether a company is structured to generate its own profit, with particular scrutiny for foreign-parented groups and importers spread across several countries.

Why Does CTPAT Validation Matter Now?

Foreign importers face a separate hurdle. To make consumption entries on their own behalf, they generally need Customs-Trade Partnership Against Terrorism validation. Diane Sabatino, CBP’s  Executive Assistant Commissioner, Office of Field Operations, said the rule “levels the playing field by holding foreign IORs to the same standards as U.S.-based IORs and requiring them, or their customs brokers, to be CTPAT-validated,” per CBP’s Nov. 5, 2026 release.

Here’s the catch most foreign importers will hit: currently only Canadian foreign importers of record are eligible for CTPAT validation. That means most non-Canadian foreign importers will need to designate a CTPAT-validated licensed customs broker and, in some cases, authorize that broker to act as the importer of record itself. The requirement covers both formal and informal entries, though CBP stopped short of the blanket informal-entry ban the executive order had proposed.

What Do Brokers Have to Do Differently?

Customs brokers now carry direct verification responsibility.

“Licensed customs brokers are now responsible for verifying that their clients meet the qualifications of a U.S. IOR before filing entries on their behalf,” said CBP Office of Trade Executive Assistant Commissioner Susan S. Thomas, in the Nov. 5 release. “This requirement ensures that foreign importers are held accountable to U.S. laws which helps mitigate risks to revenue, U.S. industries, American consumers, and national security.”

Brokers must request records such as proof of citizenship or lawful permanent residence, incorporation documents, and financial or property statements, then retain that documentation for five years. CBP Forms 3461 and 7501 have been updated with new fields for importer and principal information, and entries missing required CTPAT arrangements will be rejected starting Jan. 5, 2027.

Brokers who need more time can request a six-month delayed compliance window, but CBP expects full compliance with verification and recordkeeping obligations by May 6, 2027.

What Should Companies Do Before January?

Audit your supply chain now. Identify every entity serving as your importer of record and test it against the new criteria. Foreign importers should confirm CTPAT status, assemble supporting documentation, and communicate directly with their brokers well ahead of the deadline.

Getting it wrong carries real consequences. An inaccurate U.S. importer of record declaration can trigger live-entry requirements and loss of immediate-delivery privileges. Comments on the rule are due on or before Jan. 5, 2027, through regulations.gov regulations.govunder docket USCBP-2026-1387.