- What Is Changing Under the 2027 Foreign Importer of Record Rules?
- Who Qualifies as a US Importer of Record?
- Can a Chinese Company Be an Importer of Record in the USA?
- DDP vs FOB: Who Is Responsible for US Customs Clearance?
- Three Checks Before Your Next US Food Shipment
- Frequently Asked Questions
- How Jade Premium Supports Food Importers
| At a Glance: From 5 January 2027, US Customs and Border Protection (CBP) places every importer of record (IOR) in one of two categories: a US IOR or a foreign IOR. A company formed in the United States can still be a foreign IOR if it fails the ownership-or-property test or cannot show a genuine US presence. Foreign IORs can keep importing, but only if they are CTPAT-validated themselves or file through a CTPAT-validated customs broker. The rule sits alongside FDA food import requirements; it does not replace them. |
From 5 January 2027, where a company is registered no longer decides whether US Customs treats it as an American importer — ownership, control and US presence do. Under CBP’s interim final rule, Heightened Requirements for Foreign Importers of Record, published on 6 November 2026, every importer of record must qualify either as a US IOR or as a foreign IOR.1 According to CBP’s own data, foreign IORs made up 16% of importers filing entry summaries between October 2020 and February 2026, yet only 0.4% of them are CTPAT validated.2
For buyers of Chinese food, the rule raises a practical question: who is legally the importer of record on each shipment? It matters most in Asian food distribution in the USA, where suppliers often sell on delivered terms, run US trading arms or arrange clearance for their customers — and it lands in the same compliance window as the Red No. 3 deadline for US food imports.
What Is Changing Under the 2027 Foreign Importer of Record Rules?
From 5 January 2027, a foreign IOR may enter goods for consumption only if it is CTPAT validated or files through a licensed customs broker that is CTPAT validated, while every US IOR must declare its status on each entry. CTPAT — the Customs-Trade Partnership Against Terrorism — is CBP’s voluntary supply chain security programme. The key dates are:
- 6 November 2026 — Rule published in the Federal Register.
- 5 January 2027 — Rule takes effect and the comment period closes; brokers must have verified clients that claim US IOR status.
- 6 May 2027 — Final deadline for brokers granted delayed compliance to complete those checks.
Brokers carry much of the new burden. Those that get verification wrong can now face penalties under 19 U.S.C. 1592, which may reach the domestic value of the merchandise, rather than the $30,000 maximum that has historically applied. An importer that inaccurately declares US status can be placed on live entry, with goods released only after estimated duties are paid. Expect tougher onboarding questions, even if your company is US-owned.
Who Qualifies as a US Importer of Record?
Under the new 19 CFR Part 110, a US IOR is a US citizen or lawful permanent resident, or a US-formed entity that is located in the United States and passes an ownership or property test; every other importer is a foreign IOR.
| Test | What CBP looks at | Evidence to prepare |
| Formed under US law | Incorporation or formation in the United States | Formation documents, corporate charter, registered legal name |
| Located in the United States | Principal place of business; a physical presence where substantial business is conducted; unencumbered domestic assets; gross sales that generally exceed cost of goods sold; adequate capitalisation. CBP also asks whether the entity is “an instrumentality of a foreign manufacturer without a substantial presence in the United States”. | Lease or title documents, payroll and staffing records, financial statements |
| Ownership or property, at all times | Either at least 51% of beneficial owners are US citizens or lawful permanent residents and control the entity, or the entity directly owns a significant amount of unencumbered US real property (no dollar threshold is set) | Ownership chain up to individual owners; proof of citizenship or residence; documents of title |
A beneficial owner is a natural person who exercises substantial control over the entity or owns or controls at least 25% of it, and the rule states that layers of corporate ownership do not change this. A US subsidiary wholly owned by a holding company in Hong Kong or mainland China therefore looks through to the individuals at the top of the chain.
Can a Chinese Company Be an Importer of Record in the USA?
Yes. A Chinese exporter or a Chinese-owned US company can still act as importer of record, but it will usually be a foreign IOR and must file through a CTPAT-validated customs broker. CBP states that only Canadian foreign IORs are currently eligible for CTPAT validation, so a Chinese company cannot take the self-validation route.
CBP reports that only 21% of active customs brokers are CTPAT-validated; 68% of foreign IORs already use one, while the other 32% must switch brokers to keep importing. Two points are often misread:
- It is not a China-specific rule. The test looks at ownership and US presence, so European-, Japanese- or Singapore-owned importers face the same assessment.
- It is not an import ban. A foreign IOR can still bring goods in once the broker condition is met.
DDP vs FOB: Who Is Responsible for US Customs Clearance?
Incoterms allocate costs and risks between seller and buyer, but the importer of record is the party named on the US customs entry, so the contract alone does not settle the question. Under FOB or CIF, the US buyer usually arranges clearance; under DDP, the seller or its agent usually does.
Consider a container of frozen dumplings sold on DDP terms to a distributor in Los Angeles, with the supplier’s US trading arm named as IOR. If that arm has no staff, warehouse or property of its own, it is likely to be a foreign IOR after 5 January. If its broker is not CTPAT validated, the broker must stop filing for it, and the container waits while a new broker onboards the client — adding cold storage and demurrage costs, a risk familiar from our Chinese food export logistics checklist.
Three Checks Before Your Next US Food Shipment
Buyers can measure their exposure before 5 January 2027 by confirming who the importer of record is, whether that party qualifies as a US IOR, and whether its broker is CTPAT validated.
| Check | Where to look | Red flag | Action before shipping |
| 1. Identify the actual IOR | Importer name and number on recent entry summaries (CBP Form 7501), not just the contract | DDP shipments cleared in the name of the supplier, its agent or a US trading arm | Map every supplier and shipping lane to the party actually filing as IOR |
| 2. Review IOR status | Ownership chain to individual owners; US staff, revenue, assets and owned real property | Overseas parent group; rented office only; no staff or owned assets in the US | Prepare ownership records, charters and financial statements; ask your broker or trade counsel to assess borderline cases |
| 3. Confirm the broker route | Broker licence and CTPAT validation status | No clear answer, or “not yet” | Get written confirmation and allow onboarding time for first-quarter 2027 orders |
Changing who acts as IOR has a price. A buyer moving from DDP to FOB takes on duties, bonds, valuation and classification liability; a supplier that keeps the role will likely pay more for a CTPAT-validated broker. Settle this before goods reach port, using the same judgement that applies when choosing a Chinese food distribution partner.
Frequently Asked Questions
How Jade Premium Supports Food Importers
The rule is enforced at the US border, but much of what decides a smooth entry is prepared before a container leaves China. Jade Premium was established in 2014 as part of Yuhu Group (Hong Kong). Headquartered in Hong Kong with offices in Shenzhen, Guangzhou, Shanghai, Chengdu, Wuhan and Changsha, we provide Chinese food export compliance services from the export side:
- Supplier and shipment documents. Commercial invoices, packing lists and certificates whose exporter, seller and consignee details match the agreed trade terms, so the IOR is clear from the paperwork.
- Export compliance files. Supplier certifications such as HACCP, ISO22000 and FDA registration, plus ingredient and label data, ready for the responsible importer and its advisers.
- Trade-term coordination. Raising IOR and clearance responsibilities when an order is placed, so buyers, suppliers and licensed brokers can align their timelines.
That is the end-to-end scope a certified exporter should handle beyond paperwork. Buyers preparing Chinese food shipments for the new rules are welcome to contact Jade Premium to discuss sourcing and export preparation.
The 2027 importer of record rules aren’t just about customs paperwork. They’re about knowing, before a shipment sails, who is responsible for it at the US border — and whether that party can stand behind it. Buyers who settle that question in December will spend January importing, not waiting for a broker’s answer.
Disclaimer: This article provides general information and is not legal, customs or regulatory advice. It reflects the interim final rule as reviewed on 10 November 2026; the rule may be clarified or amended after public comment. Importers should confirm their status and filing arrangements with a licensed customs broker or qualified trade counsel.
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- [1]U.S. Customs and Border Protection, “Heightened Requirements for Foreign Importers of Record”, interim final rule, CBP Dec. 26-19, 91 FR 69977, 6 November 2026. Available at: federalregister.gov ↩︎
- Ibid., regulatory impact analysis. IOR figures cover importers that filed an entry summary between 1 October 2020 and 6 February 2026; broker and CTPAT figures are CBP data cited in the same rule. ↩︎