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CBP Begins Voiding Importer Numbers in New Enforcement Crackdown
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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 regime took effect Friday and applies to existing as well as new importers, and once CBP voids an importer-of-record number it cannot be used for any purpose, including making entry into the United States. 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, saying it is comprehensively reviewing information submitted on Form 5106, which is used to establish or update an importer identity. The agency has not publicly disclosed how many importer numbers have been voided since the new enforcement took effect, and its notice does not describe a process in which importers receive a warning or a period to correct information before their numbers are voided; instead, an importer can seek to have the number reestablished after CBP takes action. Diaz Trade Law warned that 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, with affected cargo potentially accruing port-related costs while companies work with CBP to reestablish their numbers. The crackdown comes as authorities on both sides of the U.S.-Mexico border have increased scrutiny of companies participating in international trade, although the U.S. and Mexican enforcement initiatives are separate; Mexican authorities earlier this year suspended import activities and began proceedings to cancel permits for 350 companies involved in steel imports after regulators alleged irregularities involving some importers, among 750 firms flagged for review, with another 400 companies remaining under investigation.