In shipping, IOR stands for importer of record: the company or person named on the customs declaration as legally responsible for bringing goods into a country. The importer of record files the declaration, pays import duties and taxes, holds any permits the goods need and answers to customs if something is wrong, even after the goods are released.
The question usually comes up when a supplier wins a contract in a country where it has no company. Customs will not release goods without a named importer, so someone has to take that role before the shipment leaves.
- Every import needs an importer of record. Without one, customs will not release the goods.
- In most countries the IOR must be a locally registered company.
- A customs broker files the paperwork but does not replace the IOR.
- Under DDP the seller arranges the IOR. Under other Incoterms it is the buyer.
Importer of Record Responsibilities
Customs rules differ by country, but the IOR’s duties are broadly the same everywhere. The IOR is responsible for:
- The customs declaration. The IOR is named on the import entry and signs off on what it says about the goods.
- Classification and value. Each item needs the correct tariff code and a declared value. Both decide how much duty is due, and both are the IOR’s responsibility if they turn out to be wrong.
- Duties and taxes. The IOR pays import duty, import VAT or sales tax and any other levies before the goods are released.
- Permits and licences. Some goods need an import permit, a certificate of conformity or approval from a ministry. The IOR has to hold or obtain them.
- Records. Invoices, packing lists, transport documents and payment records have to be kept for a set period. In the United States, for example, it is five years.
- Liability after clearance. Customs can audit an import months or years later. If duty was underpaid or a document was missing, the penalty goes to the importer of record.
The importer of record does not have to own the goods or be the company that receives them.
Who Can Act as Importer of Record?
In most cases, one of three parties takes the role:
- The buyer. A local company orders goods from abroad and imports them in its own name. This is the usual setup when the buyer has an import licence and knows the process.
- The seller. A supplier that has its own company in the destination country imports the goods and delivers them to the buyer, usually on DDP terms.
- A third-party IOR provider. A company registered in the destination country imports the goods on the seller’s or buyer’s behalf. This is the option for suppliers with no local entity.
Most countries require the importer of record to be registered locally, with a tax number and an importer code. A few, such as the United States, allow foreign companies to import as non-resident importers, but that still means registration, a customs bond and someone to deal with customs in the country.
Importer of Record vs Consignee, Customs Broker and Exporter of Record
These roles often appear on the same documents, which is why they get mixed up:
| Role | What it does | Legally responsible for the import? |
|---|---|---|
| Importer of record | Is named on the customs declaration, pays duties and taxes, answers to customs | Yes |
| Consignee | Receives the goods at the destination | Only if it is also the IOR |
| Customs broker or clearing agent | Prepares and files the declaration for the IOR | No, it acts as the IOR’s agent |
| Exporter of record | Is responsible for the goods leaving the country of origin | No, its role ends at export |
Importer of record vs consignee
The consignee is the party the goods are shipped to. On many shipments the consignee and the importer of record are the same company. They split when, for example, a supplier imports goods through its local company and then delivers them to a project site run by the buyer. The site receives the goods. The supplier’s company carries the customs liability.
You may also see a nominal consignee on shipping documents. This is usually a forwarder or agent listed to receive and handle the cargo on arrival. Being named as consignee does not make it the importer of record.
Importer of record vs customs broker
A customs broker or clearing agent handles the clearance itself: preparing documents, filing the declaration and dealing with customs officers. It works for the importer of record. If you hire a broker but have no local company, you still have no importer, and the shipment cannot be cleared. Some IOR providers offer both, acting as importer and handling clearance with their own team.
Exporter of record
The exporter of record is the mirror role at origin. It is usually the seller, and it is responsible for export licences, export declarations and an accurate description of what is leaving the country.
The exporter of record and the importer of record are often different companies in different countries. A manufacturer in Germany can be the exporter of record for a shipment, while a company in the destination country acts as importer of record for the same goods. Each answers to its own customs authority.
Importer of Record Under DDP and Other Incoterms
Incoterms are the standard trade terms written into a sales contract. Each one sets which side pays for transport and handles customs at each end of the route, and so who has to arrange the importer of record. For customs, the 11 terms in Incoterms 2020 fall into three groups:
| Incoterm | Export customs (seller’s country) | Import customs, duties and import VAT | Who arranges the importer of record |
|---|---|---|---|
| EXW (Ex Works) | Buyer | Buyer | Buyer |
| All other terms, such as FOB (Free on Board), CIF (Cost, Insurance and Freight) and DAP (Delivered at Place) | Seller | Buyer | Buyer |
| DDP (Delivered Duty Paid) | Seller | Seller | Seller |
Two things buyers and sellers often miss. Under EXW the buyer also has to clear the goods for export in the seller’s country, which a foreign buyer may not be able to do. Under DDP the seller pays import VAT as well as duty, unless the contract says otherwise.
Under DDP, the seller promises to deliver the goods to the buyer’s site with import clearance done and duties paid. A seller with no company in that country cannot legally act as importer, so it needs a local IOR to clear the goods in its place. This is the most common reason vendors look for an importer of record service: a tender or a buyer asks for a DDP price.
When Do You Need an Importer of Record Service?
Using your own company as importer is simpler when you have one. A third-party importer of record service is worth considering when:
- You sell DDP into a country where you have no entity. Setting up a company for one contract takes months and leaves you with a local entity to run after the contract ends.
- The buyer cannot import. Some buyers have no import licence, or no team to handle customs, and ask the supplier to deliver to site.
- You ship project equipment. Construction, energy and infrastructure projects often need equipment delivered once, or imported temporarily and re-exported later.
- The buyer has trouble paying abroad. In countries with currency controls, a local IOR that accepts payment in local currency can also solve the supplier payment problem.
- You need to test a market. A few shipments through an IOR show whether there is enough business to justify your own company.
If you import into the same country every month, a local entity or a long-term distributor is usually cheaper over time.
What Does an Importer of Record Service Cost?
There is no standard price list. Providers usually charge in one of two ways:
- A percentage of the declared value of the goods, common for high-value, low-volume items such as electronics.
- A fee per shipment, based on volume, weight and the type of goods, common for bulky project cargo.
Duties and taxes come on top. Some providers pass them through at cost, and others include them in one delivered price. When comparing quotes, check whether the price covers clearance, port charges, storage and delivery to site, or only the IOR role itself.
How to Choose an Importer of Record Provider
Questions to ask before you sign:
- Whose company is named on the declaration? Ask for the legal name and registration of the entity that will act as importer. Some providers subcontract the role to a local partner.
- Who does the clearance? An in-house team in the country is faster to deal with than a chain of agents.
- Are permits checked before shipping? A good provider tells you at the quote stage if an item needs a permit or cannot be imported.
- What is included in the price? Clearance, duties, storage, delivery and insurance should be listed separately or clearly bundled.
- How do you pay? Check the currency, the payment terms and whether the provider can pay suppliers on your behalf.
- Will you get the import documents? You need copies of the declaration and duty receipts for your own records and, in VAT countries, to understand who can reclaim import VAT. In most cases only the importer of record can.
Example: Importing into Equatorial Guinea
Equatorial Guinea shows why the role matters. A foreign vendor needs a registered company in the country to import goods, and most project suppliers do not have one. On top of that, companies in Equatorial Guinea often wait weeks to pay overseas suppliers because of currency restrictions in the CEMAC region, so orders stall before anything ships.
Total Secure Export acts as importer of record in Equatorial Guinea through its registered company in Malabo. Buyers can pay in local currency (XAF), and we pay the suppliers in USD or EUR, ship the goods, clear them through customs in Malabo or Bata and deliver them to site. Clearance typically takes 2 to 3 days for air freight and 7 to 10 days for sea freight after arrival, once the documents are complete. If the goods have not been bought yet, our sourcing services team can find them to your specification.
Importer of Record FAQ
Not necessarily. The importer of record is the party legally responsible for the import. Ownership is set by the sales contract, and the goods can belong to the buyer or the seller while a third party acts as importer.
It depends on the country. Most countries require a locally registered company with a tax number and an importer code. Some, including the United States, allow non-resident importers, but they still need to register and meet local requirements.
The importer of record carries the legal responsibility for the import. A customs broker files the paperwork on the importer’s behalf. You need an importer of record for every import, while a broker is optional if the importer handles clearance itself.
Under DDP the seller is responsible for import clearance and for paying duties and taxes. In practice the seller acts as importer of record itself if it has a local company, or uses a third-party IOR in the destination country.
Customs can hold the goods, charge the missing duty and add penalties. Because liability continues after clearance, a wrong tariff code or undervalued invoice can lead to a claim long after the goods are delivered.
The importer of record. It has to keep the declaration, invoices, transport documents and proof of payment for the period set by local law, and produce them if customs asks.
Need an Importer of Record?
If you are supplying goods to Equatorial Guinea and have no company there, send us the goods list, the supplier details and the delivery site. We come back with a delivered price, the route and the payment options.