Who Must File CBP Form 5106

The filing requirement under 19 CFR 24.5 is broad by design. CBP uses Form 5106 to identify every party with legal responsibility for or financial interest in a customs transaction. If you appear on a formal entry in any capacity, you are likely required to have a Form 5106 on file.

The filing requirement is triggered by formal entry activity, not by the act of importing generally. Understanding what constitutes a formal entry clarifies exactly when Form 5106 becomes mandatory.

For businesses engaged in international trade, the Incoterm governing your purchase agreement directly determines which party is responsible for filing Form 5106 as the Importer of Record. This is a frequently misunderstood area that can result in clearance failures when neither party has an active Form 5106 on file.

Standard Terms (EXW, FOB, CIF, CFR)

Under most standard Incoterms, the U.S.-based buyer assumes responsibility for customs clearance and is the party required to file Form 5106. The buyer becomes the Importer of Record, accepts legal responsibility for duties and taxes, and must have an active record on file before the shipment arrives at the port of entry.

Delivered Duty Paid (DDP)

Under DDP terms, the foreign seller assumes all responsibility for customs clearance, including duties, taxes, and compliance. This means the foreign seller becomes the Importer of Record for U.S. customs purposes and must file Form 5106. Foreign entities without a U.S. Employer Identification Number or Social Security Number may request a CBP-Assigned Identification Number through the Form 5106 filing process.

Consignment Arrangements

In consignment arrangements where a foreign supplier ships goods to a U.S. party who sells them on their behalf, both parties may have Form 5106 obligations depending on how the entry is structured. The consignee named on the entry is required to have an active record on file regardless of whether they technically "own" the goods at the time of entry.

Filing Form 5106 once does not satisfy the requirement permanently. There are several circumstances that require an updated or entirely new filing, even for established importers with existing records on file.

• Change in legal business name: Any name change requires an updated Form 5106 before the new name can be used on entries. The name submitted must match the updated legal registration exactly.

• Change in mailing or physical address: CBP uses your address for all official correspondence, bills, and refund issuance. Outdated address information can result in missed refunds and undelivered CBP notices.

• Change in EIN or SSN: Because your tax identification number typically becomes your Importer of Record number, any change to your EIN or SSN requires an updated filing to maintain continuity of your customs record.

• Change in entity type: If your business structure changes (for example, from a sole proprietorship to an LLC, or from an LLC to a corporation), a new Form 5106 reflecting the updated entity type is required.

• Importer number inactive for 12 months: Under 19 CFR 24.5, an importer identification number that has not been used in connection with a customs transaction for one year is removed from CBP's system. Reactivation requires a new Form 5106 filing before any entry or CBP service can be processed.

• Opening branch offices: Business entities that operate multiple branch locations and wish to track imports by branch must file a separate Form 5106 for each branch using a two-digit suffix code.

• Adding or changing a customs broker or self-filer code: Brokers and self-filers who conduct business directly through ACE must ensure their filer codes are reflected in the Form 5106 on file.

The filing exemptions under 19 CFR 24.5 are narrow. Most parties with any commercial involvement in importing goods into the United States will be required to file. However, the following categories are generally exempt from the Form 5106 requirement.

• Personal importers with de minimis shipments: Individuals importing personal goods valued at $800 or less under Section 321 do not need to file Form 5106 for those specific shipments.

• U.S. government agencies: Government entities importing goods for official government use are covered under separate CBP procedures and are not required to file Form 5106 in the same manner as commercial importers.

• Military banking facilities: Accounts and transactions maintained on U.S. military banking facilities are generally exempt from standard CBP importer registration requirements.

• Parties with existing active records: Importers with a Form 5106 already on file and active do not need to refile for each shipment. The requirement is satisfied on an ongoing basis as long as the record remains active and the information on file is current.

While CBP Form 5106 does not carry a standalone monetary penalty for failure to file, non-compliance carries serious operational and legal consequences. These range from immediate shipment holds to criminal liability for parties who submit false information. Understanding the full penalty landscape is essential for any importer.

Shipment Holds and Port Delays

CBP cannot process a formal entry without an active Importer of Record number on file. If your Form 5106 has not been processed, your shipment will be held at the port of entry or bonded warehouse until the record is established. Processing a new Form 5106 typically takes two business days, meaning a held shipment may sit for at least that period before entry can proceed. During that window, port storage and demurrage fees apply and are the importer's responsibility.

Blocked Access to IEEPA Tariff Refunds

Importers seeking refunds on IEEPA tariffs through the CBP ACE Portal are required to have an active Form 5106 on file before portal access is granted. There is no workaround. If your importer number has lapsed due to inactivity, you must reestablish your record and wait for CBP to process the new filing before any refund claim can be submitted.

Inability to Obtain a Continuous Customs Bond

A Continuous Customs Bond, which allows importers to make multiple entries under a single annual bond rather than posting a single-entry bond for each shipment, cannot be issued without a Form 5106 on file. For businesses importing regularly, this means higher bonding costs on every individual shipment until the Form 5106 is established. Form 5106 is Step 1; the bond is Step 2.

Penalties for False Information

The Form 5106 includes a signed certification that all information provided is true, correct, and submitted in good faith. By signing, the filer acknowledges that intentional false statements, deception, or fraud in the document may result in fines or imprisonment under 18 U.S.C. § 1001. This federal statute applies to false statements made to any U.S. government agency and carries penalties of up to five years imprisonment for non-terrorism-related offenses.

Importer of Record Liability Under 19 U.S.C. § 1592

By filing Form 5106 and becoming the Importer of Record, a party accepts legal responsibility for all duties, taxes, and fees associated with their entries, as well as compliance with all CBP regulations. Violations of U.S. customs laws through material false statements, omissions, or fraudulent activity in connection with the entry process can result in civil penalties under 19 U.S.C. § 1592. Penalty tiers under this statute are as follows:

These penalties apply to violations connected to customs entries, not to the Form 5106 filing itself. However, because Form 5106 establishes your identity as Importer of Record and creates your legal relationship with CBP, errors or misrepresentations in the form can compound downstream compliance exposure on individual entry filings.