Tougher rules for US imports on DDP put pressure on buyers and suppliers

9 November 2026

US companies buying goods on Delivered Duty Paid (DDP) terms have been urged to examine who is responsible for their customs declarations, after US Customs and Border Protection (CBP) introduced new requirements for foreign importers of record (IORs).

The interim final rule, published in the Federal Register last week takes effect on 5 January, with new conditions for foreign IORs making both formal and informal entries into the US, as well as additional verification responsibilities for licensed customs brokers.

Under the rule, a foreign IOR validated under the Customs-Trade Partnership Against Terrorism (CTPAT) programme can make entries itself, or appoint a licensed customs broker that does not have to be CTPAT-validated.

A foreign IOR without CTPAT must designate a broker that is both licensed and CTPAT-validated to make the entry or act as IOR.

Where the foreign party is not the owner or purchaser of the goods, the designated broker must act as the importer of record.

However, the rule also establishes stricter criteria for determining whether a business qualifies as a US IOR.

An individual must be a US citizen or lawful permanent resident, while a company must be organised under US law, located in the country, and at least 51% of its beneficial owners must be US citizens or permanent residents who control the business, or who directly own a significant amount of unencumbered US real estate.

Licensed customs brokers will have to verify a client’s eligibility before declaring it to be a US IOR. They must request and review supporting records, which could include corporate documents, financial statements, and proof of citizenship or permanent residence. Verification records must then be retained for five years.

The development follows CargoTrans’s recent tariff webinar, which examined the risks associated with DDP arrangements, noted that in theory an overseas supplier typically arranging import clearance and paying duties and taxes, offered the US buyer a seemingly simpler route to receiving goods.

But CargoTrans co-CEO Nunzio De Filippis said the new rule made that convenience harder to achieve, adding: “So that easy button that we spoke about just got harder to press.”

He advised buyers to establish exactly who is responsible for the import process when their overseas supplier sells on DDP terms.

“You have to ask them who is the importer record, who is the customs broker, what does that arrangement look like, and does it meet the new requirements?” he said.

“Welcome to the age of strengthening customs enforcement,” he added.

CBP explained the measures were intended to improve visibility of foreign importers, strengthen accountability, and help ensure duties are collected. The agency highlighted difficulties pursuing unpaid duties and enforcing customs requirements against foreign entities with few US assets.

Brokers may request delayed compliance with the new verification requirements before 5 January, but all must be fully compliant by 6 May next year. Comments on the interim final rule are due by 5 January.

For US buyers, the update means a DDP quotation alone is no guarantee that the underlying import arrangements meet the new requirements. Buyers should establish who is named as the IOR, which broker is filing the entry, and whether the relevant parties satisfy CBPconditions.