Understanding all the intricacies of international trade takes a lot of work. Through years of experience and acting as Importer of Record (IOR) to over 200 destinations, we've developed a bulletproof guide that’s key to scaling your business.
What Is an Importer of Record (IOR)?
An Importer of Record (IOR) is a legally designated entity responsible for ensuring that goods being imported into a country comply with all local laws, regulations, and customs requirements. This includes assuming responsibility for:
- Classifying goods correctly
- Filing accurate documentation
- Paying duties, tariffs, and taxes
- Securing necessary licenses and permits
The IOR appears on all official import documentation and assumes full legal liability if goods are non-compliant. Essentially, they become the temporary legal owner of the shipment during the customs clearance process.
An Exporter of Record (EOR) is similar and applies to getting gear out of a country. This also requires following stringent customs compliance requirements.
Key Responsibilities of the Importer of Record (IOR)
Being an Importer of Record (IOR) goes beyond filling out paperwork. They are directly responsible for navigating and managing the legal maze that governs imports in the destination country. This includes ensuring goods are classified using the correct Harmonized System (HS) codes, calculating and paying applicable VAT/GST, taxes, and duties, and submitting all the necessary customs documents, including customs declarations, product valuations, packing lists, and Power of Attorney (POA).
Another key responsibility involves securing the proper licenses or permits, which can vary dramatically between countries and even between product types. For instance, a shipment of IT equipment bound for Brazil will require different documentation than pharmaceuticals headed to Japan. The IOR must be prepared to address all these variables, which means staying current with country-specific customs laws and compliance updates.
More than anything, the Importer of Record assumes liability for the shipment during the import process. If the goods are delayed, misdeclared, or rejected at customs, they must resolve the issue, often at their own expense.
What Documents an Importer of Record (IOR) Must Consider
The most common documents include:
- Product classification details the type and value of the imported goods.
- Import and export licenses – this is proof that you have permission to import or export goods.
- Import permits – specific documentation relating to your importing activities.
- Fees/Taxes/Duties – when paying associated fees, taxes, and duties, the associated paperwork needs to be filled out.
- Power of Attorney (POA) – documentation that appoints the entity to take on legal responsibilities, acting on behalf of the Importer of Record when they are not on site.
- Country-specific – each country has its own specific niche customs requirements and regulations. The IOR must have an up-to-date understanding of this in order to facilitate first-time customs clearance.
Who Can Act as an Importer of Record (IOR)?
Only a locally registered entity with a physical presence in the destination country can act as an IOR. In some cases, the consignee (the entity receiving the goods) may take on this role. However, many companies, particularly those expanding into new markets, do not have legal entities in every country they ship to. In these instances, businesses often rely on third-party IOR/EOR service providers or licensed customs brokers.
This distinction is crucial because the Importer of Record becomes responsible for the shipment’s legal standing and financial liabilities at the time of import. It’s important to note that freight forwarders or logistics partners are not automatically IORs unless they explicitly agree to take on that legal responsibility and meet the local entity requirement. Mistaking a service provider for an IOR can lead to severe issues at customs.
How Importer of Record (IOR) Differs from Other Roles in the Supply Chain
Consignee
The owner and recipient of the imported goods. The consignee doesn’t take on the ownership of the goods until customs have cleared them. This entity can be both the importer and consignee if a business imports goods for internal use, storage, or distribution.
Exporter
This entity is recognized by customs as the legal exporter of goods from one country to another. The exporter can be a business, an individual, or a company acting on behalf of the exporter as the Exporter of Record (EOR).
Owner/Purchaser
The entity that imports the consignment and has a financial stake in importing the goods.
Customs Broker
An agent or broker that is external to the business. The broker is responsible for submitting documentation and clearing goods through customs.
How to Become an Importer of Record (IOR)
You need to obtain an Importer of Record IOR number – this requires fees to be paid and various pieces of documentation such as proof of identity and a Power of Attorney declaration.
You also need a full working knowledge of the ins and outs of the importing process, have a presence in the destination country, and be comfortable taking on all the legal risks associated with customs clearance. Any errors or mistakes can result in major financial and legal penalties for you and your clients. As the IOR, you would be responsible for all of this. On top of this, any error in documentation can result in shipments getting stuck in customs – this may mean extra unforeseen payments.
The Compliance Burden Carried by the Importer of Record (IOR)
Importing goods involves both voluntary compliance, where the responsible entity proactively ensures that all regulations are followed, and enforced compliance, where government agencies step in to audit, inspect, or penalize for any infractions.
Some agencies, such as the FDA in the United States or the EPA, can even override customs clearance if the imported goods pose a risk to public health, safety, or the environment. This underlines why the Importer of Record (IOR) must not only understand customs regulations but also have knowledge of sector-specific compliance, such as environmental standards, health certifications, or dual-use export controls.
Failing to meet these obligations doesn’t just delay shipments. It can result in demurrage charges, fines, seizures, or even blacklisting by customs agencies.
Why Use a Third-Party Importer of Record (IOR)?
Managing customs compliance in unfamiliar jurisdictions is risky and complicated, especially if you are importing with no local entity. By working with a trusted third-party, businesses gain:
- A streamlined import process with minimal delays
- Full compliance and reduced legal liability
- Expert guidance on country-specific regulations
- First-time customs clearance success
Streamline Your Global Supply Chain with TecEx
In today’s globalized economy, moving goods across borders is more than a logistical challenge; it’s a legal and regulatory balancing act. Many companies underestimate the complexity of international trade until they run into costly delays, rejected shipments, or unexpected penalties.
At TecEx, we’ve spent over a decade navigating customs systems across more than 200 destinations. Through that experience, we’ve seen firsthand how essential it is to understand the responsibilities and mitigate the risks associated with being an Importer of Record (IOR) to ensure your supply chain runs as smoothly as possible. We take on the liability, manage the paperwork, and guide you through the entire import process so you can focus on scaling your business globally.
We manage the risk so you can focus on growth.
Importer of Record IOR FAQs
Does the IOR own the Imported Goods?
In some cases, the Importer of Record is also the owner of the goods. However, if a third-party service such as a customs broker is used, they take temporary ownership of goods until cleared through customs. Once cleared, the consignee takes ownership.
What is an Importer of Record Number?
An IOR number is a unique number given to the Importer of Record by the destination country’s government.
Is the Consignee the same as the Importer of Record?
The consignee is the entity that takes ownership or responsibility of the goods once they have been through customs clearance. In cases where the imported goods belong to the company in-country and are for internal use or storage, the consignee can act as an importer but are not always the same entity.
Can the freight forwarder be the Importer of Record?
Not all freight forwarders or couriers may be willing or able to act as the IOR. They may not possess the correct licenses and permits required to perform a compliant import.
Who is the Importer of Record on a DDP Shipment?
Under DDP (Delivered Duty Paid) shipping, a seller is responsible for the shipment’s goods until the point at which it’s finally delivered. This occurs regardless of which mode of transport is selected.
Can I be my own Importer of Record (IOR)?
When selling, the local buyer in a sales transaction can act as their own Importer of Record (IOR). However, for cost and convenience, many choose to work with a licensed IOR service partner who can take control of all the relevant legal requirements and mitigate unnecessary penalties.
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Let’s find a solution that works for you
If you’re shipping into a foreign market without a local presence, or want to minimize customs risk, you need an IOR. Let TecEx help you stay compliant and competitive in global trade.