What is IOR And How Can You Get One?

What is IOR And How Can You Get One? As per its universal definition, Importer Of Record refers to an individual or an entity importer who takes upon itself the responsibility to import legal goods by following all the laws and regulations of the importing country.

They also need to fill up the legal documents and pay the correct import duties, and other taxes levied on the imported goods. Let's check out the responsibilities and role of an IoR in detail.

Responsibilities Of IOR Or Importer Of Record An IOR needs to fulfil several responsibilities, including:

• They need to produce all the requisite supporting documents, which need to go along with an import.

• They are responsible for the written permits, import and export licenses, local regulations paperwork, and other documents.

• Classification and valuation of the merchandise before the import.

• Ensure the accuracy and accountability of goods at the time of import.

• An Importer Of Record also needs to handle the payment of duties, tariffs, fees, and taxes.

Role Of Importer Of Record (IOR) In Compliance Considerations: An Importer Of Record has to comply with all the laid down regulations and specific provisions of the importing country. An IOR is a cooperating body for: • • • • •

Import compliance inspection Monetary penalties Civil penalties Documentation audits Investigations

In addition to it, some government agencies have extra rights to overwrite the IOR or restrict the entry of certain imports.

Main Difference Between IOR And EOR However similar they may sound, the Importer Of Record and the exporter of record indeed differ on some grounds. In fact, after knowing what is Importer Of Record , many traders don't bother to look up the definition of an EOR. An EOR has the responsibility of all export processes from the place the product is getting shipped from. Also, they have the authorization of customs authorities and concerned governments to export products from one place to another.

It is worth mentioning that an exporter is not always the seller, and it can be a different business entity acting on behalf of the manufacturer.

How To Become Importer Of Record?

Now that you know what is Importer Of Record let us determine how to get classified as one. Those import entities which function outside the USA are classified as the foreign Importer Of Record.

The entity needs to establish itself as an IOR before it can start its import operations. To get classified as an Importer Of Record, it is necessary to get issued with an Importer Of Record number from the US Customs Authority.

It is followed by a mandatory issuance of customs bonds for all the imported goods. Following documents are required to get classified as a foreign Importer Of Record and have a unique IOR number: • A document assigning a power of attorney to the importing entity for the customs processes. The document needs to be signed by two of the company's officers.

• Soft copies of formal ID documents of the two company officers named in the previous document for the sake of authenticity.

• A copy of the document comprising the importer's goods of incorporation.

• The above document should indicate that the named individual signatories hold the authority to hold a power of attorney for all the purposes related to import.

• In case the signatories don't hold power for the same, the entity needs to furnish a separate document specifying the same.

Why Get An IOR Number?

An IOR or Importer Of Record plays an important role in providing business entities and individuals with an avenue to carry out their imports without any hassle. They even ensure that the entities don't have to worry about their presence in the destination country. IOR services fast-track the shipments which involve more than two parties. Thus, it is better to get global recognition in the form of an IOR number.

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