Ever wondered how products travel across the globe before reaching you? Global trade often involves complex supply chains with many players in different countries. Routed transactions happen when goods make stops along the way to their final destination. This creates unique challenges for following rules, moving goods, and handling money.
Many industries use routed transactions, such as electronics, cars, and everyday items. At different points, parts or finished products may need to be put together, checked, or sent out. These deals usually involve makers, suppliers, shipping companies, and customers, each with their own jobs.
What is an Exporter of Record in a routed transaction?
In a routed transaction, the Exporter of Record (EOR) is key to ensuring that exports follow the rules and goods move smoothly across borders. The EOR must obtain the right export permits, prepare and turn in the required paperwork, and take on legal responsibility for the export.
The EOR could be the original maker or supplier, the middle party getting the goods, or a separate company specializing in export rules and shipping. Depending on the specific situation and agreements between everyone involved, different groups can be assigned the EOR role in the supply chain.
In a routed transaction, even though the buyer arranges and pays for shipping, the EOR still plays a vital part in ensuring the export process follows legal standards. This helps international trade deals go smoothly and follow the rules.
Read more about the difference between shipper and exporter of record. and Fill out the Form Below for further inquiries.
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