Foreign Importers of Record: Heightened Customs Enforcement and Importer Verification
The Big Picture
U.S. Customs and Border Protection (CBP) is increasing its focus on importer identity, eligibility, and financial accountability.
Foreign suppliers using their own Importer of Record (IOR) numbers for Delivered Duty Paid (DDP) shipments may face additional restrictions. Meanwhile, U.S. buyers importing under Delivered at Place (DAP) terms must ensure they are managing their own customs compliance responsibilities.
Two recent developments are particularly important: Executive Order 14411, which directs broader changes to foreign importer requirements, and new CBP enforcement measures involving importer registration information.
Official Sources
EO 14411, §§ 2, 4, 10 • White House
91 FR 53627–53628 (Aug. 19, 2026) • Federal Register
Incoterms® 2020 overview • U.S. Department of Commerce
1. Executive Order 14411 | June 3, 2026
Executive Order 14411 directs the Department of Homeland Security (DHS) and CBP to strengthen importer eligibility requirements and enforcement, with additional conditions for foreign Importers of Record.
Identity and Assets
Increased disclosure of ownership, beneficial ownership, affiliations, and import volumes.
Higher bond coverage requirements and/or requirements for tangible U.S. assets.
Key directives include:
Informal Entries
A directive to prohibit foreign Importers of Record from using informal entry procedures.
Continuous Customs Bonds
A directive to restrict foreign Importers of Record from relying on continuous customs bonds unless CBP specifically permits an exception.
Customs-Trade Partnership Against Terrorism (CTPAT) / Customs Broker Requirements
For formal entries, eligible foreign Importers of Record must either be CTPAT validated or use a licensed customs broker that is CTPAT validated.
Good Standing
CBP importer registry reviews and recurring vetting.
New good-standing standards tied to compliance and payment history.
Current Status: These are directed reforms. Implementation and effective dates depend on further action by CBP and DHS. Not all restrictions are currently in effect.
2. Federal Register Notice 91 FR 53627 | August 19, 2026
Effective September 18, 2026: CBP began reviewing both new and existing Form 5106 records. Importer of Record numbers may be voided when required information is inaccurate or incomplete.
Key requirements include:
Importer-Specific Information
The importer's name, Employer Identification Number (EIN), Social Security Number (SSN), or CBP number, physical business address, telephone number, and email address must be complete, accurate, current, and directly associated with the Importer of Record.
No Borrowed Contact Information
Addresses and contact information belonging to customs brokers, freight forwarders, registered agents, or business service providers cannot be used in place of the importer's required information.
Direct Broker Authorization
A customs broker submitting Form 5106 must have a valid Power of Attorney (POA) executed directly with the Importer of Record.
Operational Consequences
A voided Importer of Record number is invalid for customs entry. CBP provides written notice and a process for requesting reestablishment.
3. Important Dates
June 3, 2026: Executive Order 14411 signed.
September 18, 2026: Form 5106 enforcement begins.
November 30, 2026: Agency action milestone under the Executive Order.
The November 30 milestone directs further agency action. It is not an automatic effective date for every foreign Importer of Record restriction.
Commercial Impact for U.S. Importers
DAP vs. DDP: Who Carries the Risk?
Incoterms® allocate contractual responsibilities, costs, and risks between buyers and sellers. However, they do not independently establish the legal Importer of Record under U.S. customs law.
Understanding the difference between DAP and DDP is important, particularly as CBP increases its scrutiny of foreign importers.
4. Comparing DAP and DDP
Responsibility
-
DAP (Delivered at Place)
Generally the buyer
DDP (Delivered Duty Paid)
Generally the foreign seller
-
DAP (Delivered at Place)
Generally the buyer
DDP (Delivered Duty Paid)
Generally the foreign seller
-
DAP (Delivered at Place)
Often the U.S. buyer
DDP (Delivered Duty Paid)
May be the foreign seller; verify the actual entry
-
DAP (Delivered at Place)
Direct customs liability and accuracy of entry information
DDP (Delivered Duty Paid)
Foreign Importer of Record eligibility, customs bond requirements, and limited visibility
5. DAP: Responsibilities of the U.S. Buyer
Under DAP terms, the U.S. buyer typically acts as the Importer of Record and is responsible for U.S. import clearance.
Key requirements include:
Direct Duty Liability
The Importer of Record is responsible for duties and reasonable care in determining the correct Harmonized Tariff Schedule (HTS) classification, customs value, and country of origin.
Supplier Information Risks
Inaccurate supplier invoices or supporting documentation can result in duty underpayments and potential penalties.
Control of Customs Activities
Buyers should maintain control over customs broker authorization, entry instructions, and import records.
6. DDP: Responsibilities of the Foreign Supplier
Under DDP terms, the foreign supplier may act as the Importer of Record for the U.S. shipment.
Key requirements include:
Eligibility and Bonding Disruptions
New foreign importer requirements may increase costs or interrupt customs clearance.
Importer Number Risks
Inaccurate or incomplete Form 5106 information can result in the seller's Importer of Record number being voided.
Limited Shipment Visibility
Buyers may not have direct access to customs entry summaries, declared values, country of origin, or duties paid.
Incorrect Use of Buyer Information
Buyers should verify that foreign suppliers are not using the buyer's Importer of Record number without proper authorization.
Important Distinction
DDP does not automatically eliminate a buyer's potential exposure, nor does it automatically make the buyer responsible for a foreign seller's customs debt.
The actual Importer of Record designation and the specific facts of the transaction determine customs responsibilities and liability.
7. Five Checks Before Your Next Shipment
U.S. importers should review the following items to help reduce customs compliance risks:
Confirm the Actual Importer of Record
Verify the Importer of Record listed on U.S. Customs and Border Protection entry documents.
Validate Form 5106 Information
Ensure importer identity and contact information are accurate, complete, and current.
Verify Customs Bond and Power of Attorney
Confirm appropriate bond coverage and broker authorization when a foreign supplier acts as the Importer of Record.
Request Customs Entry Visibility
Ask DDP suppliers for access to entry documentation and confirmation of duties paid.
Review Purchasing Contracts
Confirm that contracts clearly establish importer responsibilities and include a fallback plan if the designated Importer of Record cannot complete customs clearance.
This guide is provided for general informational purposes only and does not constitute legal or customs compliance advice.
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