US buyers on Delivered Duty Paid (DDP) terms have until 5 January 2027 to establish who is legally the importer of record on their shipments. CBP's interim final rule, published on 6 November, redefines who counts as a US importer. From that date, a US-organized company needs 51% US citizen or permanent-resident beneficial ownership with control, or significant unencumbered US real property1.
The rule covers formal entries, generally goods worth more than $2,500, and informal entries at or below that level1. A foreign importer validated under CTPAT, CBP's Customs-Trade Partnership Against Terrorism programme, can file in its own name or use a licensed broker that need not be CTPAT-validated. One without validation must use a licensed, CTPAT-validated broker. If the foreign party is not the owner or purchaser, that broker must act as the importer of record2, 1.
Brokers must verify a client's eligibility before declaring it a US importer. They must review corporate documents, financial statements and proof of citizenship or residence, and keep the records for five years2. Brokers may request delayed compliance before 5 January, but all must be compliant by 6 May 2027. Comments are due on 5 January 20271.
Why DDP buyers are exposed
DDP means the seller clears the goods and pays duty and taxes, so the buyer sees one delivered price3. That price hides the importer of record. CBP says an importer could previously register by filing Form 5106 or using an IRS employer identification number. Beneficial-owner fields are optional. Only 3.17% of importers registered as foreign gave a beneficial owner's or company officer's name between July 2021 and June 20261.
Rennie Alston, CargoTrans's trade compliance director, said the US consignee or order party is not outside the frame: "then you have culpability"3. CargoTrans says some buyers have already had shipments refused entry, seized or ordered for re-export3.
The 51% test catches US subsidiaries
Take a US company owned 100% by an overseas manufacturer. Its beneficial owner is the overseas parent, so it fails the ownership limb1. It can qualify only by directly owning significant unencumbered US real property (free of mortgages and other claims). CBP will also ask whether the company is a vehicle for a foreign manufacturer with no substantial US presence. It will look at its US place of business, assets and capital1.
A company that fails is treated as a foreign importer of record1. It can then file only if it is CTPAT-validated itself, or through a licensed, CTPAT-validated broker1. CTPAT is open to US importers of record and non-resident Canadian importers, among others. Most non-Canadian groups are therefore likely to rely on a validated broker1.
The test also reaches buyers that file their own entries. A foreign-owned US subsidiary importing in its own name must show the same evidence, and each entry now declares whether the importer is a US importer of record1.
Duty, penalties and cargo
The importer of record declares the goods and pays the duty4. If CBP doubts an importer, it can require live entry. That requires an entry summary and a deposit of estimated duties, taxes and fees before the cargo leaves CBP custody. CBP can also withdraw immediate delivery privileges1. That means storage, demurrage and delay.
CargoTrans says buyers may face penalties linked to their import bonds even when they are not the importer of record3. CBP can assess civil penalties under Section 1592 for a material false statement or omission1.
Collection is CBP's stated motive. It says non-CTPAT foreign importers owed $1.01 billion in unpaid principal as of 6 February 2026. After audits found $1.16 billion of lost revenue, CBP recovered $35.7 million, a 3.1% rate against 15.2% for US importers1. The June executive order behind the rule also directs higher bonding and a 50% minimum penalty floor, though the White House said those changes would not take effect immediately5.
Contract terms to fix
CargoTrans suggests buyers consider moving from DDP to Delivered at Place (DAP) so they control import formalities3. That shifts the importer, bond and duty cash flow to you. If you keep DDP, name the importer of record and the broker in the contract.
Ask for evidence: the importer's legal name and address, the broker's license and CTPAT status, and the ownership or real-property documents behind the 51% test1. CargoTrans advises demanding access to declarations, transaction documents and import data3. Add a warranty that the importer qualifies, notice before the seller changes importer or broker, and an indemnity for duty, penalties, storage and demurrage on a refused entry.
A DDP price assumes a duty outcome and an entry cost. If the importer changes, ask how the price changes and get the duty calculation in writing. Importers also have recordkeeping duties under 19 CFR part 1631.
Common questions
Does a US subsidiary of a foreign parent still qualify as a US importer of record?
It can, but US incorporation is not enough. The company must show 51% US citizen or permanent-resident ownership with control, or direct ownership of significant unencumbered US real property. CBP will also test whether it is a vehicle for a foreign manufacturer without a substantial US presence1. A wholly owned subsidiary of an overseas parent will usually fail the ownership limb1.
What happens if my DDP supplier's importer fails the test?
The party becomes a foreign importer of record and must file through a licensed, CTPAT-validated broker, or be CTPAT-validated itself1. If it is not the owner or purchaser, the broker acts as importer1. CargoTrans says refused entries, seizures and re-export orders are already happening3.