New US Customs Rules for Importers of Record
Supply Chain Unchained
A licensed US customs broker and trade compliance attorney breaks down the proposed changes to importer of record requirements, what they mean for domestic and foreign importers, and what you should be doing to prepare right now.
A new executive order has directed US Customs and Border Protection to strengthen importer of record requirements, and the changes being proposed are significant. In this episode, Greg sits down with Lowell de France, Navia’s Head of Customs and Trade Compliance and a licensed US customs broker and attorney, to unpack what is actually changing, who will be most affected, and what importers need to do to get ahead of it.
This is not a theoretical discussion. The proposed changes touch on how companies qualify to import into the US, how much bonding they will need, what documentation they will have to provide, and what “good standing” with customs will mean going forward. A separate requirement around certificates of compliance for export declarations is also coming within 90 days. If you import into the US, this episode is essential listening.
What We Cover
- What triggered the proposed changes: an executive order directing Customs and Border Protection to strengthen importer of record requirements within 180 days
- How the current importer of record system works for both domestic and foreign importers, and why the US rules have historically been relatively straightforward to comply with
- What a foreign importer of record is, how a company with no US presence can currently import into the US, and why that is about to become significantly harder
- The two categories of change: domestic importers face stronger vetting, ownership disclosure, and higher bonding requirements; foreign importers face additional documentation, restricted broker access, and potential loss of continuous bonds
- What “good standing” with US Customs currently means, and how the proposed changes look to raise the bar significantly, including compliance with all laws, timely payment of all bills, and a lower threshold for losing good standing status
- How the bonding system works, why customs duty deposits are estimated at the time of import and can be adjusted retroactively for up to 394 days, and what that means for the security requirements attached to a bond
- Why smaller businesses and foreign importers are likely to be most impacted by the new tangible asset requirements
- The certificates of compliance requirement coming within 90 days, why customs wants to cross-reference export declarations from the country of origin against US import declarations to catch undervaluation, and what importers will need to provide
- The likely timeline: rules are expected to be proposed within 180 days, with a public comment period and hearings before anything is finalised; practical implementation could be 6 to 9 months away
- What you should be doing now to prepare: gathering company formation documents, ownership information, and ensuring your customs compliance is in order before the requirements tighten
Guest
Lowell de France
Head of Customs and Trade Compliance, Navia (Chicago)
Licensed US Customs Broker. Attorney, Illinois Bar
“Make sure you have documents of how you filed for your LLC or corporation at the ready. Make sure you have a list of who the actual owners are and you’re ready to give that. People who don’t want to give this very sensitive information to their customs broker or customs officer might find themselves not being able to import.”
Lowell de France, Head of Customs and Trade Compliance, Navia