Yes, assuming the shipper has a registered legal entity in the destination country and can take on the financial and legal risk associated with this role. In fact, in a shipment using DDP incoterms, the shipper is expected to act as the IOR.
The consignee is the entity that takes ownership or responsibility of the goods once they have been cleared. In cases where the goods being imported already belong to the company in-country and are for internal use or storage the consignee can act as an importer.
A foreign company without registration in the destination country cannot act as Importer of Record. Foreign companies must either request the buyer of the goods act as IOR, placing significant risk and responsibility on the buyer, appoint a customs broker, or outsource to a specialist IOR.
The way in which customs duties are calculated varies from country to country. Generally, these duties are calculated as a percentage of the value of the goods being shipped but exact numbers depend on the ECCN number and HS code of the specific product.
The total value of the goods may also differ from country to country with some requiring the commercial value of the goods is used while others only require purchase value.
See our Global Capabilities for more information on customs duties per country
DDP is an incoterm stipulating the division of responsibility between the shipper and receiver. DDP terms place the least amount of responsibility on the receiver. This means the shipper is responsible for everything up to final delivery.
Customs clearance refers to the process which needs to be followed to legally import goods into a country or export out of a country. Customs clearance documents show what goods are being brought in or out, occasionally their intended use, and give record that all duties and taxes that apply to those goods have been paid.
Customs clearance can take anywhere between a few days to weeks depending on the country you are importing into. TecEx provides accurate breakdowns of lead times for all our shipments.
Import refers to bringing goods into a country.
Export refers to taking goods out of a country.
Import/Export compliance is a set of rules and procedures that need to be followed when either bringing goods into or out of a country. They are necessary to ensure you meet the legal requirements set out by the local governments and enforced by the customs agency.
An export license is a document granting the holder permission to act as an exporter of specific goods; thereby, allowing the holder to conduct export transactions within the limits of their specific license. Different countries have several conditions that need to be met to qualify.
Dual-use goods are goods that can be used for more than one purpose. In the world of Technology, this usually refers to goods that are intended to be used by the general population but have the potential for military or improper use. Common dual-use items include radio navigation systems and items which include parts that have GPS capabilities. Due to their potential for misuse these items are more strictly regulated.
Yes. Mitigating tax and associated risks is one of the major benefits of using an IOR. Since all clearance and filing is done in the Importer of Record’s name, they are held responsible for all tax and associated risk.
TecEx is the ideal data center relocation service provider. Our DDP solution includes both IOR and EOR. This means we can act as an exporter out of the initial country and importer into the final destination.
Due to the potential to be utilized in ways other than their intended function, dual-use equipment is often highly regulated. This makes these products particularly challenging to import. This is because dual-use equipment usually needs additional compliance, inspections, and testing before it can be approved.
TecEx thrives when dealing with complex transactions and thus has a wealth of knowledge in the handling of dual-use equipment.
- Audit risk: The Importer of Record is liable for audits for up to seven years.
- Financial risk: Unexpected costs and penalties are common and unpredictable. These can arise either because of audit, a subsequent revaluation of goods, or errors in landing cost calculations.
- Legal risk: Several legal repercussions exist for non-compliance with import laws. These include loss of import licenses and legal action against the IOR and its directors.
- Operational risk: Goods may be temporarily held or permanently seized due to improper importing procedures.
- Ensuring the import is customs compliant.
- Make all necessary declarations.
- Prepare and submit all filings.
- Make payment for the duties and taxes.
- Report back to government authorities regarding the status of imported goods.
- Take on the risk of being audited for goods for up to seven years.