Importer of Record (IOR) - what is it and who needs it?
The Ladingo Team
Those who wish to import goods from China to the US may experience confusion over different logistics terms. Many often find the various roles involved in importing goods to the US hard to understand. One common question is what is IOR? What he’s responsibilities and who needs his service? That’s why we’ve put together this guide to cover everything you need to know about IOR, importer of record.
What is IOR?
An importer of record, aka IOR, is an authorized person or entity that accepts all responsibility for imported goods. Under US law, the importer of record is responsible for all risks associated with clearing the goods.
What are IORs’ responsibilities?
The IOR is responsible for different tasks regarding the importation of goods such as:
- Assuring that all products are classified correctly according to the local classification system.
- Make sure all the payments of duties, tariffs, and fees were made, and managing the paperwork.
- Make sure the import laws and regulations are followed.
- Handle all documentation, permits, and licensing for imported goods.
Who can act as IOR?
Entities- Locally registered entities, which can be persons, groups, or corporations can be the importer of record.
Consignee- In most cases, the consignee is responsible for the goods only after they have been cleared through customs. In some circumstances, the consignee might be the owner of the goods at the time of importation, making that consignee the Importer of Record.
Customs broker- An agent or a broker sometimes can act as the importer of record. If that is the case, the broker will have to take on the responsibility of the importer of record, including all paperwork.
Seller- Usually, customers do not own the goods until after they are delivered after they already entered the US. Therefore, the seller, who is the owner of the goods at the time can be the IOR.
Do you need an importer of record?
If you don’t have a registered entity in the country you are importing to and you are not a resident in that country, you will probably need professional IOR assistance.
Why is IOR important?
First, countries you import to, expect someone to take responsibility for the goods and ensure there has been no violation during the importation process. Second, importing goods from one country to another might be confusing, time-consuming, and risky if not done correctly. Every country has its regulations and laws that importers must be aware of. In Addition, taking care of all legal documentation might be complicated too. For that reason, an IOR service can be worth considering. Using professional IOR can help you avoid penalties for not following local regulations properly. Moreover, customs clearance can be simplified and sped up with IOR.
And what is EOR?
EOR is an exporter of record, an entity responsible to make sure goods are exported successfully. Exporter of record has almost the same responsibilities as Importer of record but applies for exporting activities rather than importing.
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