CBP's foreign importer rule: who needs a CTPAT broker by January 5, 2027

From January 5, 2027, a foreign importer of record can enter goods into the United States only if it is CTPAT validated or uses a licensed customs broker that is. U.S. Customs and Border Protection (CBP) published the interim final rule on November 6, 2026. In CBP's own data for October 2020 to February 2026, 63,577 foreign importers, 33.8% of the total, had neither.

If you ship into the U.S. in your own name, or through a U.S. company owned from abroad, this rule is about you. A U.S. address alone no longer settles the question.

What changes on January 5, 2027

• Foreign importers need a CTPAT link. A foreign importer of record that is not CTPAT validated must designate a licensed customs broker that is. Being licensed is no longer enough on its own.
• The scope is wide. It covers every formal entry for consumption and informal entry types 11, 12 and 13. With de minimis suspended, that reaches low-value parcels filed as type 11.
• The broker may have to be the importer. If the foreign party on the power of attorney is not the owner or purchaser of the goods, the CTPAT validated broker must act as importer of record.
• U.S. importers must declare their status. Each entry and entry summary now carries a declaration that the importer qualifies as a U.S. importer of record.
• A wrong declaration has a price. CBP can require duties and the entry summary before release, and can end immediate delivery privileges.

Are you a U.S. importer or a foreign importer?

The rule creates a new test in 19 CFR part 110. An individual qualifies as a U.S. importer by being a U.S. citizen or lawful permanent resident. A company must meet all three of these:

1. It is organized under U.S. law.
2. It is located in the United States.
3. At all times, either at least 51% of its beneficial owners are U.S. citizens or lawful permanent residents with control of the company, or it directly owns a significant amount of unencumbered U.S. real estate.

Anyone who does not pass is a foreign importer. So a Delaware LLC with a mailing address and overseas owners is treated as foreign unless it holds that real estate.

A beneficial owner is a natural person who has substantial control of the company or owns at least 25% of it, directly or through layers of other companies. Senior officers count as having substantial control.

CBP can verify the claim. It may look at where your principal place of business is, whether you pay staff or earn revenue in the U.S., your capitalization, whether sales generally exceed cost of goods, and your unencumbered physical domestic assets. Those assets are cash in a U.S. bank, Treasury bonds, and real property, inventory, machinery or equipment located in the U.S. Accounts receivable do not count.

Why CBP did this

CBP says it cannot collect from importers with no assets in reach. Audits from January 2020 to August 2026 found $1.16 billion in lost revenue from foreign importers. CBP recovered $35.7 million, a 3.1% collection rate, compared with 15.2% for U.S. importers. It also found more than 870 importer accounts sharing one physical address.

Why a CTPAT broker is the realistic route

CTPAT is CBP's supply chain security program. Only Canadian foreign importers are currently eligible for validation, and just 744 of 187,871 active foreign importers (0.4%) hold it. For most overseas brands, the practical option is a validated broker.

Those brokers are a minority: 643 of 3,100 active customs brokers. Using one does not give you CTPAT benefits. CBP also expects newly validated brokers may pass part of their compliance costs to clients, so plan for higher fees.

What to do now

1. Find your importer of record. List who was named as importer on your U.S. shipments over the last 12 months, including parcels your carrier cleared for you.
2. Check your sales terms. DDP sales usually put import responsibility on the seller, so review those lanes first.
3. Run the test above for any U.S. company you import through.
4. If you are a foreign importer, ask your broker in writing whether it is CTPAT validated. If it is not, line up a validated broker and a new power of attorney before January 5.
5. If you are a U.S. importer, gather your proof. Brokers must request and review your records before declaring for you, and keep them for five years. Expect requests for corporate charters, financial statements, proof of citizenship or residence, and title documents.

Brokers can request more time for the client verification step only, and all brokers are expected to comply fully by May 6, 2027. Penalties for brokers can now reach the domestic value of the goods under 19 U.S.C. 1592, beyond the $30,000 cap in 19 U.S.C. 1641.

What could still change

This is an interim final rule, so it takes effect while CBP takes comments through January 5, 2027 (docket USCBP-2026-1387). The executive order behind it called for barring foreign importers from informal entry. CBP did not do that yet, but says it may if the new controls prove insufficient. A separate proposal on low-value shipments would also tighten informal entry requirements.

Need a hand?

ExperShip offers CTPAT consulting. If you are not sure how this rule affects your shipments, talk to our team. This article is general information, not legal advice, so confirm your position with a licensed customs broker or trade attorney.

Frequently asked questions

When does the foreign importer of record rule take effect?

January 5, 2027, 60 days after its November 6, 2026 publication in the Federal Register.

Does a U.S. LLC make me a U.S. importer?

Not by itself. The LLC must be located in the U.S. and either have at least 51% U.S. citizen or permanent resident beneficial owners with control, or directly own significant unencumbered U.S. real estate.

Can my company become CTPAT validated instead of using a broker?

Only if it is Canadian, among foreign importers. Others need a CTPAT validated broker.

Does the rule apply if my U.S. customer is the importer of record?

The foreign importer requirement applies to the party acting as importer. If a qualifying U.S. company is the importer, it makes the U.S. importer declaration, and you are generally not the party the requirement targets.

Does the rule cover low-value parcels?

It covers informal entry types 11, 12 and 13. De minimis is suspended, so low-value parcels are not automatically outside customs entry. Ask your carrier or broker how your parcels are filed.