Understanding the complex and layered customs requirements can be challenging. If international shipping is part of your business, understanding the roles that various entities play in completing import-export transactions, particularly the role of the importer of record (IOR), is crucial.
In this blog post, we will delve into the distinction between an Importer of Record (IOR) and a consignee. Let’s explore each role in detail.
Consignee
Once imported shipments clear customs, the consignee becomes the entity that assumes ownership of the landed goods. In a straightforward import-export transaction, consignees are responsible for paying import duties and taxes.
Who Can Be a Consignee?
Entities that import goods for their business activities or on behalf of a third party are referred to as consignees. It’s important to note that a consignee may also act as an exporter if the imported goods are intended solely for internal use.
Importer of Record (IOR)
Many people often confuse consignees with Importers of Record (IOR) because both entities deal with imported goods. However, there is a significant difference between the two. Importers of Record (IOR) services, also known as declarants, ensure compliance with customs regulations for goods being shipped to the importing country.
Unlike consignees, IOR services possess extensive knowledge of customs laws across various countries due to their involvement in imports to numerous destinations. Interestingly, a consignee can also assume the role of an Importer of Record (IOR), although this typically serves the needs of an individual or a specific company.
Professional IOR services, on the other hand, facilitate import shipments for those who lack a physical presence or business connections in the destination country.
Where importer of record IOR Services Shine the Most?
Besides providing businesses and individuals with a way to conduct imports smoothly without establishing a physical presence in the importing country, IOR services also streamline shipments involving multiple parties. When handling shipments between suppliers, distributors, and end-users, having an Importer of Record (IOR) acts as a crucial link.
Professional IOR services facilitate shippers from initial quotes to tax clearance. For more information on Importer of Record (IOR) and Exporter of Record (EOR), you can read further about what an IOR is.
Read Our Related Blog
Recent Comments