International trade has many challenges, but through the help of professionals, one can avoid such challenges. An Importer of Record plays a crucial role in ensuring that import trade is not challenging. An IOR also helps prevent custom penalties due to non-adherence to customs and border protection rules and regulations. There are three parties in import trade;
- Importer of record
What is an importer of record, and who can act as an importer of record (IOR) in import trade, are frequently asked questions when importing goods. We will discuss the importer of record in detail, and also briefly discuss the consignee and the exporter.
WHAT IS AN IMPORTER OF RECORD (IOR)?
An importer of record is the responsible party for importation. The IOR can be a custom’s broker, an entity, or a shipping company. They make sure that the imported goods are of the correct value, payment of taxes, and relevant import duties’ compliance at the destination country, and all export documents and permits are in order. The IOR can either be the purchaser, owner of the goods, or an international shipping entity. Such shipping entities are subject to civil and monetary penalties, documentation audits, and investigations. The IOR also operates under government agencies. When imports and exports regulations compliance fails, the Government agencies and customs regulatory body may fail to authorize imports.
A consignee is the receiver of the goods from the exporter. Consignees must comply with the payment of import duties and other customs clearance procedures.
WHO CAN ACT AS THE IMPORTER OF RECORD?
There are different requirements for companies that can act as the importer of record in various countries. Research can help you identify an importer of record licensed in your country. But in most cases, the consignee or an entity acts as the importer of record. In complex transactions that involve suppliers, distributors, and end-users, appointing an entity as the importer of record helps to save time and money. IOR entities understand the border protection CBP procedures and adhere to them there is no time wastage
Some of the major international shipping companies also play the role of importer of record in ensuring compliance to payment of duties, customs bond, and entry documents.
IOR Africa is a licensed importer of record entity that aims at providing logistics for the fast delivery of imports and exports. They mainly deal with IT equipment imports. There are many reasons why IOR Africa is a leading IOR service provider, as highlighted below;
- The company has a global coverage to import products into Africa.
- Offers competitive prices to their clients
- Provides low-risk and timely delivery of goods
- Experts handling international trade procedures.
- Assists in getting a national or international license where it is an import requirement
WHAT ARE THE RESPONSIBILITIES OF THE IOR?
Most responsibilities when one is importing goods lies with the importer of record. That makes international trade easy. The responsibilities of an importer of record are;
- Applying for the import licenses, permits, and any other entry documents, Preparation of trade certificates such as a certificate of origin if it is a requirement by the customs authority
- Acting as the importer for customs protocol and procedures can sometimes be challenging to traders
- Ensures compliance to imports regulations in the country of import
- Payment of customs, duties, taxes, or other fines on behalf of the consignee
- Record keeping and relevant documentation filing
SERVICES OFFERED BY THE IMPORTER OF RECORD ENTITIES
Professional importers of record companies offer additional services that make importing goods easy and convenient. When choosing an importer of record service provider, it is good to opt for an entity that offers the following services as well;
- Storage and warehousing facilities
- Delivery to end-users services
- Offering channels to clear shipment faster
- Giving clients reports on shipment tracking and status of the goods
WHAT IS THE DIFFERENE BETWEEN IOR AND CUSTOMS BROKER?
Importer of record and customs broker have similar roles in processing import shipments, they are actually two separate entities. An importer of record can be a business or an individual who has been legally authorized to act on behalf of the importer in certain government functions related to importing goods into the destination country. Customs brokers, on the other hand, help importers of record with the clearance of goods through customs and are required to be licensed by the local customs. An importer of record can act as customs broker, but a custom broker can’t act as an importer of record.
IOR AND CUSTOMS AND BORDER PROTECTION
IOR should always be in compliance with local customs and border protection, CBP may deny entry of certain products under the premise of potentially being dangerous. If CBP or another agency encounters such products they assume responsibility for either export or destruction of the product. A compliance check should always be conducted by the IOR to ensure the shipment doesn’t get rejected. For an IOR this goal is achieved through compliance tools, staff training and self-audit programs.
WHY SHOULD THERE BE AN IMPORTER OF RECORD FOR IMPORTS?
Through a customs modernization act, the customs and border protection found it necessary to have the importer record. The main reason is to secure imports, but it is also an effort to ensure payment of all relevant import taxes and duties.
The importer of record must ensure accuracy and accountability during the import process. Managing the global supply chain can be challenging. But having an Importer of Record such as IOR Africa makes it less challenging since there are minimal or no chances of violations of customs clearance regulations and procedures.