---
title: "CBP Sets New Requirements for Foreign Importers of Record, Starting January 5, 2027"
description: "CBP's interim final rule, effective January 5, 2027, requires foreign importers of record to be CTPAT validated or use a CTPAT validated customs broker."
language: en
canonical: https://www.flexport.com/blog/cbp-new-requirements-foreign-importers-of-record/
lifecycle: live
author:
  - "Flexport Editorial"
publishedAt: 2026-11-06T16:58:00.000Z
dateModified: 2026-11-06T17:07:27Z
readingTimeMinutes: 4
topics:
  - "Customs & Compliance"
  - "Trade & Policy"
  - "North America"
---

# CBP Sets New Requirements for Foreign Importers of Record, Starting January 5, 2027

U.S. Customs and Border Protection (CBP) has released an interim final rule that changes how foreign importers of record (IORs), also called non-resident importers, can bring goods into the United States. The rule takes effect January 5, 2027. Here's what the notice says and what it means for importers and customs brokers.

## What the rule requires

Foreign IORs can still import into the U.S, however, under the new rule, CBP will only let a foreign IOR enter goods for consumption on its own behalf if that company is validated under the Customs Trade Partnership Against Terrorism (CTPAT) program.

Foreign IORs that aren't CTPAT validated must work with a CTPAT validated customs broker to file their entries. The notice also says a validated broker must act as the importer of record for the entry when the foreign party isn't the owner or purchaser of the merchandise.

To become CTPAT certified, a company must apply, then CBP officers visit the facility in person.

Flexport Customs is CTPAT validated. Under the new rule, a foreign IOR that isn't validated itself needs a CTPAT validated customs broker to file its entries, and not every broker holds that validation. If you import through a foreign entity, confirm your broker's status well before January 5.

## How CBP decides who counts as a U.S. IOR

The rule includes a list of criteria CBP will use to decide whether a company qualifies as a U.S. IOR. The list isn't limited to these items, but it includes:

- A principal place of business in the U.S.

- A physical presence, such as paid employees or retail locations

- Ownership of physical assets and real property, which the notice also defines as cash, bonds, industrial capital, and real estate

- Gross sales at or above cost of goods sold, with a business designed to turn its own profit

- Sufficient capitalization

CBP also now requires every IOR to report its beneficial owners. The agency defines a beneficial owner as a person who directly or indirectly owns or controls at least 25 percent of the ownership interests in the entity. CBP's definition differs from the one in the financial crimes statute. The agency says the requirement is meant to limit shell companies, such as LLCs formed in Delaware or Wyoming that hold a U.S. tax ID without any presence in the country.

## What changes for customs brokers

Brokers take on more work and more exposure under the rule:

- At onboarding, a broker has to create a record showing that a new client meets the definition of a U.S. IOR, or that the client doesn't meet this definition.

- At the time of entry, the broker checks a box on the entry to indicate whether it's acting as IOR for a foreign company or whether the IOR is a U.S. company.

- CBP is removing the caps on penalties for brokers found negligent, leading to an increase in penalties.

Brokers can request case-by-case delayed compliance within the first two months after the rule is published. If CBP grants it, the broker has until May 6, 2027 to come into full compliance.

## Why CBP is making the change

CBP's notice estimates that foreign IORs owed about $1 billion in duties that went unpaid between 2020 and 2026. The notice says the lost revenue came to 0.06% of the total value of imports for foreign IORs, compared with 0.02% for U.S. IORs.

The notice also gives a picture of how few foreign IORs hold CTPAT validation. Of the roughly 3,100 active Customs Brokers CBP counted between 2020 and 2026, 643 were CTPAT validated, 29 were certified but not validated, and 2,428 had no CTPAT status at all. That puts about 78% of them outside the program today.

## What to do now

CBP published this as an interim final rule. That format lets the agency skip much of the back-and-forth in normal rulemaking but could still be adjusted in the future.

If you import into the U.S. through a foreign entity, start by checking whether that entity meets CBP's U.S. IOR criteria and whether it holds CTPAT validation. Then ask your customs broker whether they are CTPAT validated, since not every broker is validated. Flexport Customs is CTPAT validated.

If you'd like help working out how the rule applies to your import setup before January 5, talk to your [Flexport team](https://www.flexport.com/get-started/).

*Source: *[CBP notice in the Federal Register (public inspection)](https://public-inspection.federalregister.gov/2026-22735.pdf)

---

*This is a markdown version of [https://www.flexport.com/blog/cbp-new-requirements-foreign-importers-of-record/](https://www.flexport.com/blog/cbp-new-requirements-foreign-importers-of-record/) for AI/LLM consumption.*