Global Entry with Thomas Taggart – a bi-weekly column on navigating global business, e-commerce and compliance in a changing world
Also read: The future of cross-border e-commerce in emerging markets
After years of quietly operating in the background, the US Non-Resident Importer (NRI) program is suddenly thrust into the spotlight. Once a little-known mechanism for enabling foreign entities to import goods without a US presence, the NRI has become a turning point in trade policy – especially as the US limits minimum duty-free shipments and increases enforcement of tariffs.
For e-commerce brands and global merchants alike, the rules of engagement have changed. Understanding how the NRI framework works – and how it is evolving – is critical now to maintaining access to the US market.
From a regulatory footnote to a policy flashpoint
The NRI framework, created under the Tariff Act of 1930, has long allowed foreign businesses to act as an importer of record (IOR) without establishing a US entity. Historically, it offered traditional B2B trade: a foreign company could import by appointing a US-resident agent and submitting customs papers—procedural steps, not political arguments.
All this changed with the advent of cross-border e-commerce. As online shopping gained momentum globally, what was once a niche mechanism became a core strategy. Millions of overseas traders adopted NRI status to sell in markets and hold unsold inventory in the United States.
Amazon FBA and the rise of foreign sellers
Amazon’s Fulfillment by Amazon (FBA) program transformed NRI from a technical footnote to a mass market enabler. FBA created both opportunity and necessity: To reach prime customers with fast delivery, foreign sellers had to pre-position inventory in US warehouses. But Amazon doesn’t act as the importer of record—that’s the seller’s responsibility.
Enter the NRI solution. By providing a CBP-assigned importer number and a bond, foreign sellers can import inventory into U.S. clearinghouses—without forming a U.S. entity or maintaining domestic assets. Today, it is estimated that Chinese and Hong Kong sellers account for more than 60% of third-party sellers on Amazon.
The boom also fueled an ecosystem of services: “FBA Importer Packages” with NRI setup offerings, resident agent services, bonds, and customs filings that are marketed directly to global merchants. For many Chinese sellers, the path from the factory floor to Amazon’s warehouse has been dramatically simplified.
Meanwhile, the 2016 increase in the least The threshold from $200 to $800 – and the introduction of Type 86 entries in 2019 – paved the way for another increase in direct-to-consumer shipments. Platforms like Shein, Temu, and AliExpress have built business models with duty-free entry, which is estimated to account for more than 30 percent of all U.S. low-value package shipments by 2022.
but with the least The program is now suspended, those models are in crisis — and the NRI system is being re-examined as a solution for foreign traders to evade US duties.
Minimums end, tariffs rise, and scrutiny grows
On August 29, 2025, an executive order was suspended the least Overnight treatment for all countries, every incoming package – regardless of value – now requires full customs clearance and duty payment. For millions of foreign traders, the door that once bypassed customs clearance is virtually closed.
At the same time, tariffs are rising sharply: countervailing duties between 10% and 41%+, plus additional sections 301, 232, 201, and anti-dumping/countermeasures. CBP audits have increased more than 150% year over year, with increasing attention to devaluation, misclassification, and transportation.
The convergence of these pressures has forced thousands of foreign sellers to seek alternative import routes – often with dubious results.
Solutions: “Revised DDP” and compliance risk
With increased mandates and oversight, a parallel market for solutions has emerged. Some overseas suppliers now offer “Duty Paid Delivery” (DDP) or so called shipping. has been corrected DDP status effectively acts as importer of record through NRI status.
In these arrangements, the foreign manufacturer—not the U.S. trader—declares the import value to customs, often far below the actual transaction value. Some industry executives estimate that “modified DDP” transactions now account for approximately 10% of total US imports.
While marketed as convenience and cost savings, the risk is real. When duties are underpaid or declarations are falsified, liability can also extend to the American buyer. Both CBP and the Justice Department have warned that U.S. companies will not be immune from enforcement simply because their supplier “handled imports.”
In short: When a deal looks too easy, it usually is.
Collection crisis
At the heart of Washington’s concern lies one word: Collectable – CBP’s ability to recover unpaid duties and penalties from foreign importers with limited or no US presence.
When a U.S. company defaults, CBP can seize assets, pursue claims, or collect through domestic legal channels. But with NRIs, the options are limited: bonds are the only real collateral and resident agents are not financially responsible.
The math doesn’t work. A foreign merchant who imports $1 million in goods at a 50 percent tariff owes $500,000 in duties—ten times the minimum $50,000 bond. If they default, the guarantor will pay only the bond ceiling and leave the rest uncollected. CBP has documented cases of “ghost importers” who collect debt, dissolve, and reappear under new names.
A gentle framework by design
The US NRI model stands out for its leniency. Unlike the UK and the EU, which require an “indirect agent” with a physical presence in the market to share the financial responsibility for the customs debt, the US relies only on importer bonds. Brokers act as agents, not guarantors.
This structural gap is now at the center of the proposed reforms. Lawmakers argue that the lack of a bonded agent enables undercapitalized foreign sellers to operate in the U.S. market with little liability — and leaves CBP with limited recourse if duties are not paid.
Back legislation and industry
Reforms gain bipartisan momentum. particle for direct object Leveling the Playing Field Act 2.0 (HR 1548/S. 691)Introduced earlier this year, it requires NRIs to maintain US assets to cover potential duty liabilities and post enhanced bonds – with exemptions for C-TPAT Tier 2/3 participants. Violations may result in fines of up to $50,000 per shipment or 50 percent of the value of the shipment.
Separately, Senator Bill Cassidy is considering legislation that might go further, seeking to remove NRI eligibility for most foreign businessmen except those in Canada. Trade groups such as the Alliance for Trade Enforcement are also calling for the US to end the NRI permit altogether and require domestic importers of record or joint liability structures.
August suspension of the least The scores reinforced the calls, revealing just how deeply embedded foreign NRI operations are now in U.S. e-commerce — and how fragile the current system has become.
Ways forward for foreign sellers
For legitimate merchants and platforms, consistency is key. There are several courses of action:
- Use the Record Importer service: Partnering with a licensed IOR service provider adds cost but provides accountability and smoother compliance.
- Realization lever in the country: In conjunction with an IOR service, import inventory in bulk into US warehouses, pay duty on cost of goods rather than retail prices to reduce per-unit costs. Research shows that 94% of e-commerce leaders plan to expand their operations domestically within five years.
- Join Trusted Trader Programs: C-TPAT certification and similar initiatives may provide safe harbors under future legislation and demonstrate an active compliance status.
The new reality
The NRI trail that helped grow global e-commerce isn’t closing — but it’s narrowing. The United States is shifting from permitted growth to accountability and enforcement.
Foreign vendors, especially those they once relied on the least Exemption programs and soft imports face new complexity and costs. But those who view compliance as an investment—not an obstacle—can turn this moment into a competitive advantage.
The doors are open to American consumers. It’s just no longer frictionless.
Biography of the author
Thomas Taggart is VP of Global Business at Passport, a global e-commerce solutions provider that helps brands like Ridge, HexClad, and Wildflower Cases scale globally with international shipping, expert compliance support, and in-country activation services. For more information about passports, visit passportglobal.com. The Global Entry with Thomas Taggart is a bi-weekly column in Global Business Magazine that covers the strategies, regulations and insights that will shape the future of cross-border business.
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