Importing goods from one country to another comes with a lot of complexity—managing documents, ensuring compliance, calculating duties and tariffs, and dealing with customs. It’s a lot for any business owner to handle, especially when you’re already focused on important daily activities like developing new products, nurturing relationships with customers, and running marketing campaigns. Adding the intricacies of international shipping to your plate can quickly become overwhelming, taking valuable time and attention away from tasks that significantly and tangibly grow your business.

That said, having an Importer of Record (IOR) isn’t a “nice-to-have”; it’s a must. An IOR takes care of all the technical aspects of importing, such as handling the paperwork, compliance, and logistics, so you can stay focused on running your business without worrying about the complexities of the import process. This allows you to keep your operations efficient and hassle-free.

 

What Is an Importer of Record (IOR)?

An Importer of Record (IOR) is the legal entity or individual responsible for making sure that goods entering a country comply with all customs regulations. Acting as the point of accountability for customs authorities during the import process, they file the required paperwork, pay any duties and taxes, and ensure that the imported goods meet local standards and legal requirements, from start to finish.

Having an IOR is important because, without one, it can be unclear who is responsible for meeting these obligations, especially when dealing with high-value goods with strict regulatory requirements. The IOR ensures that all legal aspects of the import process are addressed, preventing delays or fines at customs. This makes the entire import process smoother and more efficient.

 

What is an IOR Number?

An IOR number is a unique identifier assigned to the Importer of Record by the destination country’s government. This number is essential for tracking and managing imported goods and is used in all customs documentation to ensure the shipment is processed correctly. The IOR number links the importer to the shipment, confirming that the importer is responsible for meeting all legal requirements, such as paying taxes and duties, and ensuring compliance with local regulations.

 

Who Can Act as an IOR?

An IOR can be any legal entity or person located in the importing country who holds a valid importer ID number. The key requirement is that the IOR must be able to take on all the responsibilities associated with importing goods, including compliance with regulations, filing paperwork, and paying duties and taxes.

Different entities that can act as an IOR include:

  • The owner or purchaser of the goods: Often, the person or business buying the goods will act as the IOR, as they have the most direct interest in ensuring the goods reach their destination without issues.
  • A legal agent or authorized representative: If the owner or purchaser prefers not to handle the import process themselves, they can appoint an agent in the destination country to act on their behalf.
  • Third-party logistics providers (3PLs): Many businesses choose to outsource the IOR role to experienced third-party logistics providers who are directly involved with the shipment as buyer, seller, consignee, receiver, or other relevant stakeholder. These companies specialize in managing imports and ensuring everything runs smoothly, making them a reliable option.
  • Customs brokers: Although not always the most common choice due to the legal risks and responsibilities, some customs brokers, like Clearit, are willing to act as the IOR for personal shipments (only). We take full responsibility for ensuring compliance and clearing goods through customs.

 

Importer of Record Services and Responsibilities

The IOR takes on several important responsibilities to ensure compliance and smooth customs clearance. Here’s a breakdown of the main services and responsibilities an IOR handles:

 

Documentation Compliance

The IOR is responsible for making sure all necessary paperwork is in order. This includes import permits, licenses, and proper product classification. Without the correct documentation, shipments can be delayed or even denied entry, so this step is mission-critical.

 

Customs Clearance

One of the IOR’s primary duties is to clear shipments through customs. This involves submitting the required documents, making sure all goods are properly classified, and ensuring the shipment meets local regulations. The IOR also handles any necessary communication with customs authorities.

 

Payment of Duties and Taxes

The IOR is responsible for pre-paying any customs duties, taxes, or fees associated with the shipment. This ensures that there are no unexpected charges for the business importing the goods while helping prevent any hold-ups at the border.

 

Shipment Tracking and Reporting

The IOR often provides regular status reports to keep businesses informed about where their goods are in the shipping process. This transparency allows for better planning and coordination on the importer’s side.

 

Storage Solutions

In some cases, the Importer of Record (IOR) also provides storage solutions for imported goods. This service is particularly useful when there are delays in the final delivery or when goods need to be held temporarily before reaching their destination. 

 

Last-Mile Delivery

Once customs clearance is complete, the IOR oversees the final delivery of the goods to the end-user. This includes managing the logistics of the shipment’s journey from the customs point to its final destination.

 

How to Become an Importer of Record

Becoming an IOR involves a few key steps to ensure you’re legally registered and ready to handle the responsibilities of importing goods:

 

  1. Submit identification for the authorized individuals in your company who will handle the import process.
  2. Submit a power of attorney, signed by two officers of your company, so your customs broker can act on your behalf. 
  3. Submit articles of incorporation to verify your business’s legitimacy and outline the officers’ roles within the company.
  4. Obtain your IOR number. Your broker will apply for this number on your behalf.
  5. In some cases, securing a customs bond will be necessary to guarantee that duties and taxes will be paid.

 

Clearit can help guide you through this process as your customs broker, ensuring you secure your IOR and streamline your shipments’ clearance into Canada.

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