An Importer of Record is a third-party entity agreed upon between the buyer and seller of goods that acts as a non-resident importer during the shipping process. They help streamline the supply chain by making sure customs compliance rules and regulations are accurately met. Technology, sometimes categorized as dual-use goods, is complex to ship because it is highly regulated and is frequently flagged and held up at the border. Companies with experienced logistical experts still face difficulties with new situations and changing rules. In contrast, an Importer of Record regularly ships to many destinations and stays abreast of changing laws and the required bureaucratic steps to ship smoothly. Customers get frustrated with delays, which can cost them and cost you their continued business.
In many countries, importing goods requires a local taxpaying entity to import. However, a non-resident importer can perform this role if the buyer is unwilling or unable to do this themselves. An Importer of Record can be the non-resident importer, completing complex import permits, licenses and paying fees like duties or other indirect taxes. Experts and specialists in shipping technology like TecEx can provide IOR solutions and services in over 180 countries. They offer door-to-door service and arrange brokerage, clearance, and local delivery, and they have many relationships along the entire supply chain. Customs clearance is guaranteed every time. FedEx also provides full tax recovery services, in some instances retroactively, depending on the countries involved.
An IOR is responsible for:
- Ensuring customs compliance and meeting the requirements of local regulations and laws
- Paying import duties and taxes
- Completing all relevant documents, like permits, licenses, and filing the bill of entry
- Tracking and providing information, keeping records, and communicating to associated parties
- Assuming all legal and practical risks related to importing goods
An IOR is needed for these scenarios:
- Shipping equipment or devices to an entity that does not have local tax registration in the destination country
- Shipping on DDP terms to buyers or customers lacking import permits where they operate
- Shipping spare or warranty parts to an FSL warehouse (Forward Stocking Location)
- Shipping goods to a foreign data center
Carriers are not IORs. They are responsible for physically moving goods from one location to the next, plus they may provide brokerage or clearance services if there is an IOR in place. Still, they cannot perform the legal role of an IOR themselves. Your Importer of Record will be able to work with your preferred carrier if you have one in place. TecEx offers door-to-door service and can streamline the entire process, from prepping shipping documents to delivery at the local destination, making a separate carrier unnecessary.
An Importer of Record specializing in shipping technology worldwide is an invaluable partner that can help grow your business and access international clients that weren’t thought feasible. They can free you and your business from the hassles associated with global shipping logistics, customs, and import regulations with confidence and ease.