U.S. Customs and Border Protection (CBP) is expected to publish an Interim Final Rule (IFR) on November 6, 2026, redefining the criteria for determining who qualifies as a U.S. Importer of Record (IOR).

If published as scheduled and CBP maintains the anticipated 60-day implementation timeline, the rule is expected to take effect on January 5, 2027. Please note that regulatory timelines may change depending on government action.

What Is Changing?

Under the new rule, having an IRS-issued Employer Identification Number (EIN), a U.S. address, or being incorporated in the United States alone will no longer establish eligibility as a U.S. Importer of Record.

To qualify as a U.S. IOR, an entity must be organized under U.S. law and located in the United States. Additionally, it must continuously meet at least one of the following conditions:

• Ownership Test: At least 51% of its beneficial owners must be U.S. citizens or permanent residents who control the entity.
• Real Property Test: The entity must directly own significant, unencumbered real property in the United States.

CBP will examine ownership structures through every level of ownership. This means that U.S. subsidiaries of foreign parent companies may also be classified as foreign IORs.

What Does This Mean for Importers?

The new requirements involve more than simply updating an indicator on a customs entry. Importers must assess their eligibility, and customs brokers must request and review supporting documentation before declaring an entity as a U.S. IOR.

The rule also introduces changes to entry and entry-summary declarations through the Automated Broker Interface (ABI), supported by verification of the importer’s status.

Key requirements include:

• Foreign IORs must be independently CTPAT-validated or file through a CTPAT-validated customs broker.
• These requirements apply to formal entries and informal entry types 11, 12, and 13.
• Importers must declare their U.S. IOR status on CBP Forms 3461 and 7501 for each entry.
• Supporting documentation, a valid Power of Attorney (POA), and applicable right-to-make-entry requirements must be addressed.

What Happens If You Do Not Comply?

Foreign IORs that do not meet the applicable requirements cannot make covered entries.

An inaccurate declaration of U.S. IOR status may result in:

• Live Entry: The entry summary and estimated duties, taxes, and fees must be submitted before the goods can be released.
• Loss of Immediate Delivery Privileges: CBP may discontinue these privileges.
• Potential Penalties: Applicable penalties may be imposed depending on the nature of the violation.

How Alba Wheels Up Can Help

As a CTPAT-validated customs broker, Alba Wheels Up can provide a filing pathway for qualifying foreign IOR arrangements. However, this does not eliminate the need for proper status assessment, supporting documentation, POA, and right-to-make-entry compliance.

We will be reviewing our existing clients’ importing entities to determine whether they qualify as domestic or foreign IORs. You can expect our team to reach out as this process moves forward.

Once our review process is finalized, we will provide clear instructions regarding the documentation required and the next steps.

If your importing entity qualifies as a foreign IOR, is not independently CTPAT-validated, and currently works with a customs broker that is not CTPAT-validated, Alba may also be able to assist with a transition to a compliant filing arrangement.

What Should You Do Now?

Ahead of the anticipated January 5, 2027 implementation date, we recommend:

• Evaluate each importing entity against the new 51% ownership and U.S. real property criteria.
• Gather relevant ownership and asset documentation.
• Confirm that your customs broker is CTPAT-validated if your entity qualifies as a foreign IOR.
• Identify all import flows involving foreign IORs, including DDP shipments from suppliers.

Important Timeline: January 5, 2027 is the anticipated effective date for all importers and brokers, assuming the IFR publishes November 6 with the stated 60-day timeline. May 6, 2027 is not a general extension, but rather the latest compliance date for brokers that request and receive CBP approval for additional time to complete the new client-verification requirements. It does not postpone the foreign IOR requirements. Alba is working toward full readiness by January 5.You can review the regulatory notice here: Federal Register – Heightened Requirements for Foreign Importers of Record