U.S. Customs and Border Protection has launched a tougher enforcement campaign targeting importer records containing inaccurate or incomplete information, a move that could prevent companies from clearing U.S.-bound freight and leave shipments stranded at ports of entry and border crossings.
The new regime took effect Friday and applies to both existing and newly registered importers. Once CBP voids an importer-of-record, or IOR, number, that number becomes unusable for any purpose, including filing an entry into the United States.
What may initially look like a documentation issue can therefore quickly become a much broader supply-chain disruption, affecting importers, customs brokers, freight forwarders, trucking companies and warehouses.
CBP outlined the enhanced enforcement in an Aug. 19 Federal Register notice, as part of a wider effort to verify the identities of companies bringing merchandise into the country.
At the center of the process is Form 5106, which importers use to establish or update their identity with CBP. The agency said it is carrying out a comprehensive review of the information submitted through that form.
If CBP concludes that an importer, or a customs broker acting on its behalf, has failed to provide complete and accurate information, it can void the IOR number and potentially take further enforcement action.
CBP has not publicly said how many importer numbers have been voided since the new enforcement measures took effect.
The requirements could create particular challenges for foreign companies involved in U.S. imports.
According to an analysis by Diaz Trade Law, potentially exposed arrangements include nonresident importers that use a U.S. customs broker’s address because they have no U.S. premises, foreign sellers acting as importers of record in delivered-duty-paid transactions, e-commerce sellers relying on third-party fulfillment centers, and smaller importers whose records were established years ago and have not been updated.
The enforcement also has potential consequences for cross-border freight moving from Mexico and Canada, where foreign companies can act as nonresident importers of record for goods entering the United States.
One of the key operational concerns is timing. An importer may not realize that its IOR number has been voided until a shipment is already moving through the supply chain.
CBP said it will send written notification of the action to the email address most recently provided by the importer. Where applicable, the customs broker that most recently filed an entry on the importer’s behalf will also be copied.
However, the agency’s notice does not outline a warning period or a formal opportunity to correct inaccurate information before an IOR number is voided. Instead, importers must seek to have their number reestablished after CBP has taken action.
That creates the possibility of additional costs while freight remains on hold. Diaz Trade Law warned that affected shipments could accumulate port-related charges as companies work with CBP to restore their importer numbers.
Importer enforcement expands on both sides of the U.S.-Mexico border
The CBP initiative comes as authorities on both sides of the U.S.-Mexico border have intensified their scrutiny of companies involved in international trade, although the U.S. and Mexican actions are separate enforcement efforts.
Earlier this year, Mexican authorities suspended import activities and launched proceedings to cancel permits for 350 companies involved in steel imports, after regulators alleged irregularities involving some of the importers.
Those companies were part of a wider group of 750 firms flagged for review under a Mexican government crackdown focused on smuggling and the alleged misuse of trade programs.
Some of the companies faced removal from Mexico’s Manufacturing, Maquiladora and Export Services Industry, or IMMEX, program. The scheme allows export-oriented manufacturers to temporarily import raw materials and components without paying duties.
Another 400 companies remained under investigation and were required to submit additional documentation.
Customs brokers also face greater scrutiny
CBP’s tougher approach is also increasing the compliance burden for customs brokers.
Brokers that submit importer information are expected to conduct due diligence and make sure the details are accurate. They cannot simply replace their customers’ contact information with their own.
CBP regulations also require brokers to obtain a power of attorney directly from the importer, rather than through a freight forwarder or another third party.
Providing inaccurate or misleading information can expose brokers to monetary penalties and other enforcement measures.
“A brokerage that populated its own address, email, or phone across hundreds of client records has hundreds of potential defects,” Diaz Trade Law said.
The broader issue is that importer identity data is no longer merely an administrative requirement. An inaccurate record can now become a direct obstacle to cargo clearance, with potential consequences for shippers, customs brokers and companies moving freight across the U.S. borders.
Why it matters: CBP’s crackdown turns importer identity records into a potential cargo-clearance bottleneck, raising the risk of delays and additional costs for shippers, customs brokers and cross-border freight operators moving goods into the United States.
