Two Minutes in Trade - Is Your Company IOR Ready?
Sep 26, 2026 · 3 min · 3 segments
What should companies consider now to meet the enhanced IOR requirements in E.O. 14411? Past CBP rulings may provide some valuable guidance.
Sep 26, 2026 · 3 min · 3 segments
What should companies consider now to meet the enhanced IOR requirements in E.O. 14411? Past CBP rulings may provide some valuable guidance.
Today is September 26th, and I'm Lenny Feldman, Managing Partner with the law firm of Sandler, Travis, and Rosenberg, PA. Today's discussion is your company IOR ready.
Executive Order 14411 directs CBP to focus on issues such as domestic assets, business presence, beneficial ownership, and whether an entity has genuine U.S. commercial substance.
The challenge, we still don't have the detailed regulations or guidance from CBP.
However, many companies are already evaluating their structures, supply chains, and importer of record models.
Historically, importer of record rulings focused on whether the party has a sufficient financial interest in the imported goods to qualify as an owner or purchaser with the right to make entry.
CBP examined factors such as financial exposure, ownership interest, and commercial risk associated with the merchandise itself.
Those rulings do remain important, but they may not tell the whole story under the EO.
In fact, some of the most useful clues may come from the bona fide buyer, seller, or sale for export rulings.
Some of these cases examine whether a U.S. entity is truly operating as an independent business or merely functioning as a paper corporation or an extension of a foreign affiliate.
So what should companies be thinking about now? CBP has looked at factors such as physical and independent U.S.
presence, separate books and records, independent decision-making authority, U.S.-based personnel, ownership of assets, assumption of commercial risk, control over purchasing, and inventory.
Essentially, CBP applies a totality of the circumstances analysis rather than relying on a single factor.
For now, until CBP releases its implementation guidance, companies must start evaluating these indicators to assess if they really are IOR ready.
Today is September 26th, and I'm Lenny Feldman, Managing Partner with the law firm of Sandler, Travis, and Rosenberg, PA. Today's discussion is your company IOR ready.
Executive Order 14411 directs CBP to focus on issues such as domestic assets, business presence, beneficial ownership, and whether an entity has genuine U.S. commercial substance.
The challenge, we still don't have the detailed regulations or guidance from CBP.
However, many companies are already evaluating their structures, supply chains, and importer of record models.
Historically, importer of record rulings focused on whether the party has a sufficient financial interest in the imported goods to qualify as an owner or purchaser with the right to make entry.
CBP examined factors such as financial exposure, ownership interest, and commercial risk associated with the merchandise itself.
Those rulings do remain important, but they may not tell the whole story under the EO.
In fact, some of the most useful clues may come from the bona fide buyer, seller, or sale for export rulings.
Some of these cases examine whether a U.S. entity is truly operating as an independent business or merely functioning as a paper corporation or an extension of a foreign affiliate.
So what should companies be thinking about now? CBP has looked at factors such as physical and independent U.S.
presence, separate books and records, independent decision-making authority, U.S.-based personnel, ownership of assets, assumption of commercial risk, control over purchasing, and inventory.
Essentially, CBP applies a totality of the circumstances analysis rather than relying on a single factor.
For now, until CBP releases its implementation guidance, companies must start evaluating these indicators to assess if they really are IOR ready.
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