U.S. Customs and Border Protection has begun voiding importer-of-record numbers containing inaccurate or incomplete information, an enforcement crackdown that could prevent affected companies from clearing U.S.-bound freight and leave cargo stranded at ports of entry.
The new enforcement regime took effect Friday and applies to existing as well as new importers. Once CBP voids an importer-of-record, or IOR, number, it cannot be used for any purpose, including making entry into the United States.
That could turn what might appear to be a customs paperwork problem into an immediate supply-chain disruption involving importers, customs brokers, freight forwarders, trucking companies and warehouses.
CBP announced the enhanced enforcement in an Aug. 19 Federal Register notice as part of a broader effort to verify the identities of companies bringing goods into the country.
The agency said it is comprehensively reviewing information submitted on Form 5106, which is used to establish or update an importer identity with CBP.
If CBP determines that an importer, or a customs broker acting on its behalf, failed to provide complete and accurate information, the agency can void the IOR number and pursue additional enforcement action.
The agency has not publicly disclosed how many importer numbers have been voided since the new enforcement took effect.
Those requirements could pose particular issues for some foreign companies importing goods into the United States.
Potentially exposed arrangements include nonresident importers that have listed a U.S. customs broker's address because they lack U.S. premises, foreign sellers acting as importers of record in delivered-duty-paid transactions, e-commerce sellers using third-party fulfillment centers and smaller importers whose records were created years ago and have not been updated, according to an analysis by Diaz Trade Law.
The enforcement could have implications for cross-border freight moving from Mexico and Canada, where foreign companies may serve as nonresident importers of record for merchandise entering the U.S.
One of the biggest operational risks is that an importer may not discover that its number has been voided until a shipment is already moving through the supply chain.
CBP will send written notification of the voiding to the email address most recently submitted by the importer and, when applicable, copy the customs broker that most recently filed an entry on its behalf.
CBP's notice does not describe a process in which importers receive a warning or period to correct the information before their numbers are voided. Instead, an importer can seek to have the number reestablished after CBP takes action.
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