CBP to Begin Voiding IOR Numbers for Incomplete or Inaccurate Information

As part of a broader tightening of customs enforcement directed by a presidential executive order, U.S. Customs and Border Protection has announced plans to verify the accuracy of the information provided by new and existing importers of record on CBP Form 5106, the create/update importer identity form.

To become an IOR and be able to make entry in the U.S., an individual or entity (or a licensed customs broker on their behalf) must submit a Form 5106 with the following data elements:  importer name, Internal Revenue Service employer identification number, social security number or CBP-assigned number, mailing address, physical location address (if different), phone number, and email address. Form 5106 also includes several optional data elements such as information regarding the company, business structure, beneficial ownership, and company officers.

Consistent with the EO, CBP is implementing enhanced enforcement measures requiring IORs (or their brokers) to ensure that all information provided on Form 5106 is accurate and complete and that each data element belongs directly to the IOR. Beginning Sept. 18, if CBP determines that accurate or incomplete information has not been provided on this form, the IOR number will be voided, rendering it invalid for any purpose, including entering imports into the U.S.

CBP may also take other enforcement actions, as appropriate. For example, parties certifying Form 5106 may be subject to fines, imprisonment, or other legal consequences for making an intentional false statement or committing deception or fraud on that form. Additionally, because IOR data is an important identifier for liability for payment of duties, providing inaccurate or misleading information on Form 5106 is material to an obligation to pay money to CBP and could subject the IOR or associated individuals to liability under the False Claims Act or other laws. Customs brokers submitting inaccurate or invalid information on a Form 5106 may also be subject to broker penalties or other consequences pursuant to 19 USC 1641.