An importer of record (IOR) is an entity, or person providing permission to import your goods under their import license. Importer of record is a crucial service when planning to import high-tech IT and telecom goods into a country where you don’t have a legal entity or operation.
What does an IOR Provider do?
The Importer of record (IOR) is bound to make sure all legal and formal requirements are fulfilled when the goods are being imported and cleared through customs. An IOR provider ensures all import documents are filled out correctly. Product classification and product values are accurately described. The IOR will also pay all customs duties and taxes on behalf of your company.
Another major responsibility of an IOR is to provide all import permits needed for that particular product. These import permits or approvals are needed in advance to ensure customs will clear the goods. Without this, the goods can be impounded into an offsite warehouse. The IOR is also responsible for any damage and risks associated with the goods throughout the entire clearance and delivery process.
Documentation
An extensive knowledge of customs requirement in each country is required to import goods. Additionally, understanding all the complicated documentation needed to get the goods cleared through customs can be very daunting. To ensure these tasks are done without any errors you must consult your IOR provider before moving the goods. Below are some of common documents needed while importing into any country:
Product Classification: this document will list the value of and type of goods
Export and Import Licensing: this document proves you have the legal right to import these goods.
Permits and Permissions: these are specific documents that indicate you are permitted to import these goods.
Duties/Taxes: documents listing the details of duties and taxes being paid while importing the goods.
Power of Attorney (POA): This document indicates who you have appointed to take full responsibility for importing your goods.
Importing rules and regulations vary by country. Developed countries are more likely to have less import regulation as compared to underdeveloped countries. Further, it is also dependent on the type of goods you are importing. Some IT and telecom-related goods have more legal requirements no matter which country they are imported into.
Depending on the country you are importing rules and regulations may vary. Developed countries are more likely to have less import regulation as compared to underdeveloped countries. Further, it is also dependent on the type of goods you are importing. Some IT and telecom-related goods are associated with more legal requirements no matter in which country they are imported.
Who can Become an IOR Service Provider?
Any local entity with a registered legal name along with the import license for that product can act as an importer of record. In most cases, the consignee acts as an importer and clears the goods but they can also choose to use a third-party customs brokers to get the goods cleared through customs.
Appointing a company as the IOR provider removes any confusion and manages the responsibilities for each party. An importer of record provides the importer service, permits, pays duties/taxes, fulfills the custom formalities, and delivers them to the end-user who actually owns the goods. While importing you give the ownership of the goods to the IOR provider so they can fulfill all the import associated responsibilities.
Some Important Definitions
Customs Broker: An external agent or party acting as an importer responsible for handling all the legal paperwork associated with importing the goods.
Consignee: The company or party that owns the goods until they are cleared from customs. It can be an individual or a business entity who is responsible for handling the import process. Once the goods are cleared from customs, the consignee hands them over to the end-user who is the actual owner of the goods.
Exporter: The entity or company that is exporting the goods from the country of origin. This can be a company or an individual acting on behalf of the exporter.
Owner/ End-User: The company or individual who owns the goods and the legal purchase/ user agreement.
Why Should You Choose AGOL as your Importer of Record?
- Customs agent/brokers in more than 120 countries
- 10 years+ of providing IOR services into the most remote locations around the globe
- Trade and compliance specialist for the IT and telecom industry
- One-stop solution for door-to-door international deliveries
- For more details you can visit AGOL Importer Of Record Service Page
