Home furnishings retailers, manufacturers, and importers should prepare for new customs requirements that could affect how they document their business ownership and bring products into the United States. U.S. Customs and Border Protection (CBP) published an interim final rule on November 6, 2026, implementing changes under Executive Order 14411, “Strengthening Customs Enforcement.” The rule establishes new standards for determining whether a business qualifies as a U.S. or foreign importer of record, adds verification responsibilities for customs brokers, and imposes heightened requirements on foreign importers. The rule takes effect January 5, 2027.
The immediate takeaway: Being incorporated in the United States does not automatically make your business a U.S. importer of record.
Who Qualifies as a U.S. Importer of Record?
An importer of record, or IOR, is the party responsible for the customs entry and associated import obligations.
A business entity must be organized under U.S. law and located in the United States, and must also meet one of two conditions:
- At all times, at least 51% of its beneficial owners must be U.S. citizens or lawful permanent residents and have control of the entity; or
- It must maintain direct ownership of a significant amount of unencumbered real property in the United States at all times.
Businesses should not treat the beneficial-owner requirement as a simple check of their immediate corporate shareholders. CBP’s definition looks through layers of corporate ownership to the natural persons who ultimately own or exercise substantial control over the entity.
The rule does not establish a fixed dollar threshold for “significant” real property. CBP may also consider a company’s actual U.S. operations, physical presence, assets, capitalization, and other relevant circumstances when verifying its status. Companies with complex ownership structures should review their qualification with their customs broker and customs counsel.
An importer that does not meet the U.S. IOR criteria is considered a foreign IOR.
What Changes for Foreign Importers?
For covered entries of merchandise for consumption, foreign IORs must either:
- Be validated through the Customs Trade Partnership Against Terrorism (CTPAT) program; or
- Use a licensed, CTPAT-validated customs broker.
CTPAT is CBP’s supply-chain security partnership program. Importantly, certification and validation are different stages—businesses should confirm validated status rather than assume program participation is sufficient.
Foreign importers should also confirm their eligibility before pursuing validation on their own. The rule states that only Canadian foreign IORs are currently eligible to participate in CTPAT as importers, making the validated-broker option particularly important for other foreign importers.
Qualifying U.S. IORs are not required by this rule to become CTPAT validated or use a validated broker, but they must declare their U.S. qualification when filing entry and entry-summary documentation.
Why Your Broker May Request More Information
Customs brokers will have to request and review supporting records before declaring that a client qualifies as a U.S. IOR.
Depending on the business, those records may include corporate formation documents, proof of citizenship or lawful permanent residence, financial records, purchase receipts, and property-title documents. Brokers must retain verification records for five years from the verification date.
Key Dates to Know
- January 5, 2027: The rule becomes effective.
- January 5, 2027: Public comments are due.
- January 5, 2027: Deadline identified in the rule’s delayed-compliance section for eligible brokers to submit requests.
- May 6, 2027: Latest compliance date for brokers receiving approval to delay the new verification requirement. federalregister.gov
The broker extension is not automatic and does not postpone the rule’s other requirements, including the CTPAT requirements for foreign IORs.
Are Informal Entries Still Allowed?
Yes. The rule does not impose a blanket prohibition on foreign IORs using informal entry.
For covered informal entries, a foreign IOR may file if it is itself CTPAT validated and has the right to make entry. Otherwise, it must use a licensed, CTPAT-validated broker. CBP will monitor these transactions and may consider a broader prohibition in the future. federalregister.gov
What Home Furnishings Businesses Should Do Now
To reduce the risk of shipment disruption:
- Confirm who serves as the IOR for your imported products. A foreign supplier does not automatically mean your business is a foreign IOR.
- Ask your broker how it will verify your status and what documentation it needs.
- Review beneficial ownership and U.S. presence with counsel, especially if your business has foreign ownership or multiple corporate layers.
- Confirm CTPAT-validated status where required, rather than relying on a broker’s license or certification alone.
- Identify practical concerns for public comment, including documentation burdens, unclear qualification standards, and potential effects on importing costs.
For the home furnishings industry, effective customs enforcement and workable compliance processes both matter. Preparing now can help businesses support legitimate trade while protecting inventory flow and customer delivery commitments.
Read the full interim final rule and discuss your company’s circumstances with your customs broker or customs attorney.
Contributor acknowledgment: HFA thanks Steve Fodor, CEO of Customs Services and Solutions, and Chris Andresen, HFA’s lobbyist and Vice President of Dutko, for their insights and contributions to the analysis in this article.
This article provides general educational information and is not legal advice.
