US Customs and Border Protection (CBP) is gearing up to tighten its grip on import operations with a flurry of regulatory measures that will significantly alter the responsibilities of customs brokers and foreign importers seeking to move goods through US ports.

The agency has established new compliance requirements, increased financial accountability and expanded its enforcement powers through an Interim Final Rule (IFR). Such measures could result in substantial civil penalties for licensed US customs brokers who do not properly verify the status of their clients.

The move comes after months of mounting expectations in the trade industry for tighter customs control. Those expectations only grew after President Donald Trump signed an executive order in June aimed at closing loopholes in import compliance. But the finalized rule goes further than expected, placing customs brokers at the heart of the US government’s efforts to fight import fraud.

New eligibility criteria for importers of record

A key component of the regulation relates to the definition and qualification criteria of US Importers of Record (IORs) and foreign Importers of Record.

The new rules provide that a person seeking recognition as a US IOR must be either a US citizen or a lawful permanent resident.

Companies and other legal entities must be at least 51% beneficially owned by US citizens or lawful permanent residents or own significant unencumbered real property in the United States.

Foreign persons and businesses that fail to satisfy these criteria will be designated as foreign IORs and will be subject to further operational limitations in clearing goods through U.S. ports.

The regulation also establishes a specific requirement for foreign importers who wish to submit customs entries. They must be validated under the Customs Trade Partnership Against Terrorism (CTPAT) program or use a customs broker who is validated under CTPAT.

This is a big shift for the brokerage industry. A standard US customs broker licence will no longer suffice to clear shipments on behalf of foreign importers not vetted under the program.

CBP also has said it will be closely reviewing informal entries filed by foreign IORs and their brokers after the regulation becomes effective.

The agency warned that if the declarations are deemed a threat to government revenue, national security, public health or safety, it could take further action to prevent foreign importers from using informal entry procedures to bring goods into the country for consumption.

Customs brokers are far more exposed financially

One of the most significant consequences of the new regime is the greater liability for customs brokers.

Brokers will be required to perform due diligence to determine if their clients meet the requirements to become US Importers of Record. Improper verification of this status may subject you to civil penalties for fraud, gross negligence or negligence.

The financial impact could be significant.

The new rules could result in penalties equal to the entire value of the goods imported in the domestic market. This is a significant increase from the previous enforcement framework, where broker licensing violations were capped at a $30,000 penalty.

The change effectively raises the financial stakes for brokerage firms, requiring greater emphasis on client verification and compliance procedures when dealing with foreign importers.

CBP granted more authority to stop cargo at terminals

The regulation also provides CBP with enhanced authority to intervene directly in cargo clearance operations at marine terminals.

The amended customs provisions also allow for revocation of the immediate delivery privileges if the importer makes an inaccurate declaration regarding its US IOR status.

CBP would also be able to require a process called live entry. Under this mechanism importers must deposit the full duties and submit entry summary documentation before their merchandise can be released from customs custody.

The measure increases customs officials’ authority over shipments for which the declared importer status does not satisfy regulatory requirements, which could pose greater operational and financial challenges for the impacted businesses.

The decision was spurred by a $1.01 billion backlog of unpaid duty

CBP has said the regulatory overhaul is necessary because of ongoing challenges collecting customs debts from overseas importers and a much higher rate of seizures among firms that have not received CTPAT validation.

Foreign IORs pose unique enforcement challenges to ensure compliance with U.S. customs and trade laws, particularly concerning financial obligations owed to the federal government, the agency said.

The numbers referenced in the interim rule demonstrate the scope of the problem.

As of 6 February 2026, unpaid bills issued on or after 1 October 2020 and still outstanding against non-CTPAT foreign IORs totaled $1.01 billion, excluding interest.

CBP also indicated that the seizure rate for foreign importers without CTPAT validation was over five times higher than for validated foreign IORs.

These are cited as driving forces behind moves to tighten eligibility requirements for importers, increase broker accountability and broaden enforcement actions.

implementation starts in January 2027

The new regulation is due to be published in the Federal Register on Friday, 60 days before taking effect on January 5, 2027.

Customs brokers will be able to apply for a delayed compliance period. However, the agency expects all brokers to be fully compliant with the new requirements by 6 May 2027.

The coming months will therefore be important for the US customs brokerage industry. The companies will need to look again at their client verification procedures, examine their exposure to foreign importers and check their compliance arrangements are in line with the new CTPAT-related requirements.

The change in the rule comes as US authorities take a tougher stance on import oversight, with customs brokers expected to increasingly serve as a first line of defense against fraudulent declarations and unpaid customs duties.