In today’s blog post, we are diving into an essential topic Importer of Record and Exporter of Record that often confuses many.
Let’s begin with the basics:
What is the difference between an exporter and an importer of record?
- IOR: A person or company responsible for handling all legal aspects of an import operation in the importing country. The Importer of Record (IOR) is also tasked with making payments for duties, tariffs, and fees on imported goods. Essentially, they act as the representative of the importer.
- EOR: Similar responsibilities to the IOR but in the context of export operations rather than imports. The EOR manages all aspects of an export operation destined for foreign destinations.
Why Do I Need an IOR or EOR?
Given that global logistics spans multiple countries, IOR (Importer of Record) and EOR (Exporter of Record) play crucial roles in ensuring smooth processes concerning local legal requirements and taxes. They guarantee that any unforeseen issues can be promptly resolved.
Other great advantages to working with IOR/EOR are:
- Simplified shipment clearance processes.
- There is no need to establish legal entities in foreign countries.
- A transparent process fully compliant with all import laws of the destination countries, including a document retention system in line with import/export regulations.
The Responsibilities of IOR and EOR
IOR and EOR services provide a single organization to meet international trade requirements, ensuring faster, simpler, and more reliable importing and exporting worldwide.
The company providing Importer of Record (IOR) services and Exporter of Record (EOR) services can act as either the owner or the purchaser/seller of foreign merchandise. An Importer of Record (IOR), may also serve as a customs broker with power of attorney (POA) to act on behalf of the importer.
We Recommend to Read: Basic Importing and Exporting
Key responsibilities of Importer of Record (IOR) / Exporter of Record (EOR) include:
- Classifying and valuing merchandise before import.
- Overseeing the entirety of export processes.
- Ensuring compliance with regulations of the destination/source countries.
- Settling all taxes related to international trade.
- Submitting necessary declarations to government agencies.
- Preparing all required documentation (certifications, permits, and authorization)
Get to know more about What is an importer of record.