Importer of Record
You may have heard the term “Importer of Record (IOR)” before, but what does that really mean? Per the Business Dictionary, the definition is below:
Customs term for the entity responsible for (1) ensuring the imported goods comply with local laws and regulations, (2) filing a completed duty entry and associated documents and (3) paying the assessed import duties and other taxes on those goods.
More specific information about these basic responsibilities is below:
- The product you are importing must comply with any local and federal laws and regulations applied to your commodity.
- Example: Some medicines and cosmetics require a pre-filing with the FDA.
- Example: Some wood products require a harvest report and treatment certificates showing where the wood was harvested and what has been done to it since to make it the product you are importing.
- Almost every commodity is regulated in some way, shape, or form. It is the IOR’s responsibility to make sure that the product they are importing is of a legal nature and acceptable for U.S. Commerce.
- The duty entry and associated documents are normally something submitted by the IOR’s Customs broker rather than by the IOR themselves. Some IOR’s have their own in-house Customs broker but most will contract this service to a Customs brokerage company.
- While using a broker may seem like it would absolve the IOR of responsibility for the entry process, it does not. Even though your broker is submitting the entry to Customs, they are doing so on your behalf. It is the IOR’s responsibility to audit the entries filed by your broker to ensure accuracy and compliance.
- Some IOR’s have a direct payment schedule set up with U.S. Customs while others pay the duties and taxes through their Customs broker. Either way is acceptable to Customs as long as they are paid in the time period they have specified. However, if your broker is billing you but not paying Customs in a timely manner, Customs will seek correspondence with the IOR for direct settlement. If you pay duties/taxes through your broker and receive a notice from Customs of unpaid duties, you should inform your broker immediately and work with them for resolution.
Put simply, it is the IOR’s responsibility to ensure that the product they are importing is of a legal nature. Beyond that, the IOR should make sure that the shipping documents (Bill of Lading, Commercial Invoice, Packing List, Cert. of Origin, etc) and Customs entry documentation are an accurate reflection of the sale of the imported goods.
If you have questions or concerns about any of the above, Superior Freight Services,Inc. can assist – please contact us at 952-854-5053 or superior@supfrt.com
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