U.S. Customs Tightens Importer of Record Rules
The focus of U.S. customs inspections is shifting from goods to the entities responsible for importing them. Initially, the concern was whether goods could pass through customs. However, recent developments, including the “5H inspections” and subsequent detentions and returns, have heightened anxiety within the cross-border trade community.
Changes in Importer of Record (IOR) Regulations
Recently, logistics providers have reported receiving notifications from U.S. Customs and Border Protection (CBP) regarding the cancellation of Importer of Record (IOR) numbers. Effective March 20, 2026, this decision will apply to customs declarations submitted from 12:01 AM Eastern Time onwards.
The IOR is not merely a customs declaration number; it represents the legal entity responsible for the goods entering the U.S. The entity acting as the IOR must ensure the accuracy of declaration information, pay taxes and fees, and comply with related obligations. The focus of the current scrutiny is not just the IOR number but the authenticity and accountability of the entity behind it.
Documentation and Verification Requirements
Entities must submit several documents, including an updated CBP 5106 form, government-issued photo ID, IRS-issued EIN proof, and a valid authorization document between the IOR and a licensed customs broker. Additionally, further identity verification through video or in-person meetings may be required.
- Updated CBP 5106 form
- Government-issued photo ID
- IRS-issued EIN proof
- Authorization document with a licensed customs broker
While these requirements are circulating within the industry, there is no comprehensive public documentation confirming each detail. However, it is clear that U.S. customs is tightening its scrutiny of the authenticity of import entities.
Industry Implications and Reactions
The focus on IOR is not an isolated action. Previously, the “5H inspections” led to widespread concern about who is accountable for shipments. The IOR is central to this issue, particularly for operations relying on dual customs clearance and tax-inclusive logistics, which often have unclear responsibility boundaries.
As regulatory scrutiny deepens, the IOR is likely to be the first point of focus. This has prompted discussions about compliance paths, emphasizing the need for clear responsibility and authentic import entities.
Potential Legislative Changes
In March, the U.S. Congress introduced the SAFE Act, signaling further tightening of import qualifications. The Act proposes several key requirements for future IOR qualifications:
- Increased personal identity thresholds, requiring U.S. citizenship or verifiable presence.
- Corporate entities must demonstrate verifiable physical presence in the U.S.
- Clear financial pathways, with duties and fees paid through verified U.S. bank accounts.
- Potential exceptions for “trusted trade partners.”
Although the SAFE Act is still a proposal and not yet enacted, it indicates a trend towards stricter import qualifications. Sellers should differentiate between proposals and current rules and assess their import entities and customs arrangements accordingly.
Final Thoughts
The evolving landscape of U.S. customs regulations underscores the importance of authentic and accountable import entities. As scrutiny intensifies, businesses must ensure their operations can withstand more rigorous verification processes.
Staying informed about legislative developments and adapting to compliance requirements will be crucial for maintaining smooth cross-border operations in the future.
