By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

UPDATE: U.S. CBP has added a new section to the Strengthening Customs Enforcement FAQ for the Foreign Importers of Record Interim Final Rule (91 FR 69977).

The FAQ can be found here.

The FAQ includes a section with helpful links to the Interim Final Rule (IFR), an overview document, a reference guide, and the Strengthening Customs Enforcement website, with a Webinar to uploaded discussing the IFR.

CBP addresses the question many have been asking when determining their U.S. IOR status when 51% U.S. citizen / lawful permanent resident beneficial owner(s) are not met – Q: what amount of unencumbered real property in the U.S. constitutes a significant amount of unencumbered real property for the purposes of qualifying as a U.S. IOR?

A: A “significant amount of unencumbered real property in the United States” is 100% of the IOR’s prior year’s entered value or $20 million, whichever is greater. This is to ensure that sufficient assets exist in the United States, for the importer to cover payment of duties, taxes, and fees. An entity can qualify as a U.S. IOR without meeting this threshold if it meets the other criteria for U.S. IOR status (i.e., at least 51% of beneficial ownership and control by U.S. citizens or lawful permanent residents).

We will continue to monitor this situation and issue updates as needed. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.