By definition, an importer of record (IOR) refers to an importer (an entity or an individual) who is responsible for ensuring that legal goods are imported following the laws and regulations of the importing country. The importer of record is responsible for filing legally required documents and paying the assessed import duties and other taxes on the imported goods.
Importer of Record (IOR) Documentation Responsibilities
The importer of record is responsible for all supporting documentation that goes along with an import. This can include import and export licenses, permits, local rules and regulations paperwork, and more. Along with documentation, the IOR typically handles the payment of duties, taxes, tariffs, and fees, all of which require additional paperwork and forms to be filled out.
Enforced Customs & Compliance Considerations
The importer of record must remain compliant with all necessary rules, regulations, and statutes in the importing country. An IOR service provider is subject to enforced compliance inspections of imports, documentation audits, monetary penalties, civil penalties, and investigations. Certain government agencies have the authority to over-rule the importer of record and deny entry of certain imports. For example, the Food and Drug Administration (FDA) can deny an import if it’s seen as a possible threat to the general well-being of the United States.
What’s the Difference Between an IOR & EOR?
An exporter of record (EOR) covers the same points as the IOR but applies to exports rather than imports. An exporter of record is responsible for all steps of the export process from the country the product is leaving. An exporter is a person or company that is authorized by customs and government authorities to export goods from one country into another. The exporter isn’t always the actual seller of goods, it can be an entity acting on their behalf.
Every import of high-value requires a local business or registered entity to act as the importer of record for customs. As an example, it’s generally quicker and more cost-effective to procure high-value technology products from the U.S. as opposed to working with technology distributors around the world. Working with an IOR service provider gives you the ability to import into hundred of countries worldwide with a single point of contact, minimizing the risks and costs associated with high-value goods.
Additional Services Provided
Some IOR service providers, like Logistics Plus, offer additional benefits acting as your importer of record. Oftentimes this includes door-to-door logistics management, value-added tax (VAT) reclamation, duty and tax optimization to determine the accurate classification, trading entity assistance, and more.
Learn more about Logistics Plus IOR services by watching the video below.