WASHINGTON — U.S. Customs and Border Protection will begin enhanced verification of importer information Sept. 18, with inaccurate or incomplete records potentially resulting in the immediate cancellation of an importer of record number.
The new procedures apply to information submitted by new and existing importers through CBP Form 5106, the agency’s Create/Update Importer Identity Form. An importer of record number is required to enter merchandise into the United States and conduct certain other transactions 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 said it will void the importer’s number, making it invalid for any purpose, including clearing imported merchandise.
The enhanced enforcement procedures are part of CBP’s implementation of President Donald Trump’s June executive order on “Strengthening Customs Enforcement.” The order directed the Department of Homeland Security to confirm that active importers comply with applicable regulations and disclosure requirements.
CBP said it is comprehensively reviewing Form 5106 information already on file. Importers and their brokers must ensure that physical addresses, email addresses, phone numbers and tax identification information are accurate, complete and belong directly to the importer.
A physical address must identify the importer’s actual business location or, when applicable, the principal’s home address. CBP will not accept the address of a registered agent, customs broker, freight forwarder, business service center, another person or entity, or a post office box as the importer’s physical address.
Similarly, the email address and phone number must belong to the importer. Brokers and other third parties may not substitute their own contact information.
Customs brokers submitting information for an importer must also hold a valid power of attorney executed directly with that importer rather than through a freight forwarder or another third party. Brokers are expected to exercise due diligence and should not transmit information they know or should know is false, misleading or unverified.
CBP warned that a person certifying Form 5106 could face fines, imprisonment or other consequences for intentional false statements, deception or fraud. Inaccurate information may also expose importers or associated individuals to liability under the False Claims Act, while brokers could face separate penalties.
If CBP voids an importer number, it will send written notice to the importer’s most recently provided email address and, when applicable, copy the broker that last filed an entry for the importer. The notice will explain the decision and the process for requesting reinstatement.
Trade law firm Mowry & Grimson advised importers to contact their brokers immediately and review the information CBP has on file before enforcement begins.
