Importer of Record: The Complete Guide

This guide explores every piece of information you need to know about importer of record.

From the basic definition, importance, uses, and benefits, among other critical aspects.

Keep reading to learn more.

What Is Importer Of Record?

An importer of record is an official considered as the owner, consignee, or purchaser who has ownership of goods during importation.

The truth is that the importer of record can also be a customs broker with the right authorization.

Furthermore, the importer of record oversees the product payment of duties and classification.

The importer of record takes responsibility for every import obligation.

Should You Use Importer Of Record Services?

Yes, it is imperative for you to use an importer of record services whenever you import goods.

Using such services will come in handy as they are liable for securing goods from any terroristic threats.

The importer of record services accounts for every legal responsibility as they work under customs and border protection.

Who Should Use Importer Of Record Services?

It is often of benefit to use import of record service when you wish to import dual services.

Of course, this is in situations where you are not registered in the countries you wish to import to.

This is because the importer of record services will take care of your goods up-to where the goods are being imported.

Suppose you are registered to import the goods in different countries, but you do not have custom knowledge or accreditation that meets the custom compliance requirements.

Then it will be of benefit to use importer of record services.

Note that the processes involved in custom clearance of your goods are often complicated.

To top it all, you may be required to be in the customs office to offer them information about the goods.

Instead of going through such a hustle, it will be of benefit to make use of an importer of record services.

Can The End User Or Consignee Be The Importer Of Record?

There are times that the government might register the end-user to import in the country.

However, often than not, the end-user often does not like to be involved in the import process.

Also, the end-user may lack personnel familiar with the process.

So the best solution would be to hire an importer of record service.

Also, a consignee would not want to be enlisted as an importer of record.

This is because if the consignee is enlisted as an importer of record, the goods will become a taxable asset.

What Do Importer Of Record Services Offer? 

Importer of record service help ensure that the client understands every detail concerning trade compliance.

The importer of record service involves themselves in importing responsibilities such as:

1. Provides freight services is required.
2. Offers shipment status reports.
3. Gives storage solutions.
4. Takes care of all levies, pre-paid charges, and customs charges.
5. Responsible for custom clearance: While doing this, the importer of recorder service will clear your shipment through all the required custom channels.
6. The importer of record service will ensure that you have a pre-ship import license, permits, and necessary documents that will help you have a good compliance check.

Are There Any Importer Of Record Charges?

There are few changes that you are liable to pay anytime you use an importer of record.

Here are some of the charges you will incur:

Importer of Record Fee

This is the cost of being an importer of record.

The value of the goods often influences the amount paid.

Importer Approval Charges

These charges entail; the cost of permits, labeling, import of license approvals, and electronic data interchange.

Customs Clearance

The charges consist of; customs brokerage, agent handling, airport handling, customs inspection and processing, customs clearance process, and warehousing.

In Country Delivery

The cost involves transporting the goods in the designated country from the port to the end-user.

This can also be referred to as last mile delivery.

Note that the cost is influenced by the dimension of the cargo and the weight.

Tax and Duties

This includes the government import fee and destination country customs.

Note that the import regulation of the country influences these charges.

What Is The Difference Between Importer of Record and Consignee?

A consignee is an entity that takes ownership of goods once the customs clear them.

In most cases, the consignee is the one liable for paying import duties and taxes.

The consignee can be the under user or any other firm.

An importer of record is an entity liable for ensuring that the goods being imported align with the international or local import legislation.

The importer of record ensures that all the import preparations are complete.

They also submit all the import documentation.

For some people, they tend to confuse between an import of record and a consignee.

The confusion arises as both entities deal with the import of goods.

Besides, the main difference is that the importer of record is an accredited official allowed by the government to act as an importer.

A consignee cannot take up such a role.

Also, the importer of record services are well accustomed to the customs laws. Something that most consignee lack.

If you do not wish to have any confusion about who owns the goods when you conduct a transaction with a supplier or distributor, then make use of an importer of record.

This is because they will temporarily own the goods until the goods are imported.

What Information Should You Have to Receive a Quote for Importer of Record Service?

If you need a quote from the importer of record service, here is some of the information you need to have:

1. The city and country the client wants the goods delivered to.
2. Your company’s name and address.
3. The product’s value, description, code, and quantity.
4. ECCN number and HS code (If you are not familiar with these terms, ensure that you check on our Glossary of Terms for you to have a better understanding of the terms.)
5. If available, ensure that you provide the dimensions and weight of the package.

What Is Importer Of Record Number?

The importer of record number is a unique identifier that the customs authority of the importing country assigns.

In the simplest manner, the importer of record number acts as a social security number of any importing entity.

Note that there are no set standards for the importer numbers.

Additionally, the importer numbers tend to have different formats.

Every importer needs an importer number as it is used to track the goods imported in the country.

The importer number tends to expire. The expiration date differs in every country.

Therefore, before making any commitments, it is best to confirm if your importer number is still valid.

What Are the Responsibilities of Being an Importer of Record?

An importer of record is responsible for:

1. Ensuring that the goods obey the import regulation set in the country.
2. Payment of duties, taxes, and any other fee required while importing goods.
3. Filling the right permits, documents, and licensing of the goods.
4. Product classification.
5. Border and customs protection.
6. Aid with accessing custom bond paperwork for imports.
7. Ensuring that they have a power of Attorney at hand in case the importer cannot be there during the delivery time.

Can A Foreign Company Be an Importer of Record?

Yes, a foreign company can be an importer of record.

However, customs and border protection requires the foreign company to have an agent in the state where the goods are being imported.

For you to be recognized as a foreign company importer of record, you need to have an importer number issued by the country you are importing the goods to.

Also, you need to have custom goods for your cargo.

Ensure that you have a copy of the importer’s article of incorporation.

Also, you need a document that allows you to have the power of attorney that will come in handy during the customs clearance.

Make certain that the document is signed by two of your firm’s officers.

Include the formal ID documents for the two officers.

What Does Importer of Record Mean in Shipping?

In shipping, the importer of record is the party liable for ensuring that all goods being imported follow the legal and customs rules.

How Do You Become an Importer of Record?

If you wish to become an importer of record, here are some of the qualifications you ought to meet. Note that the list is not limited to:

1. You ought to own the goods being imported or have a financial interest in them.
2. A copy of a contract between the consignee and the importer.
3. An original copy of the arrival notice.
4. A confirmation of the sale, this ought to have the purchaser’s signature.
5. An original endorsed bill of landing.
6. A copy of the CBP form 301 bond.
7. A proof that the importer is endorsed to conduct business in their state.
8. Submit any contract the importer might have between them and the manufacturer.
9. Have verification of the point of contact and the firm that takes the goods’ command upon cargo release.

What Are the Benefits of Importer of Record?

Here are some of the benefits of importer of record:

• The importer of record will perform compliance that is needed to define the import restrictions.
• By using an importer of record, you are certain that you will have simple custom clearance.
• The importer of record will take care of every inventory registry and compliance.
• By making use of an importer of record, you will save the cost of having an understanding of the legal entities in the country.
• If the client needs warehousing and storage, the importer of record can offer the solution.
• Importer of record maintains records for the minimum time needed by the client based on the region’s law.
• Depending on the service the importer of record offers, there are some who offer logistics, door-to-door service, and a distribution center.
• Having to use such a service will save up costs as you will not be required to outsource such services to other firms.

When Is Importer of Record Required?

You will want an importer of record whenever you need to import goods to another country.

What Is the Difference Between an Importer of Record and A Custom Broker?

A customs broker is a person or entity that acts on behalf of the importer.

The authority licenses the customs broker for them to submit all documents required to clear the goods through the local customs.

An importer of record is an entity accountable for the import process.

The main difference between a customs broker and an importer of record comes is clear when establishing their responsibilities.

A customs broker cannot pay tax duties and is not responsible for ensuring that the goods arrive safely to the end-user.

Generally, an importer of record can act as a customs broker.

However, this is rare for a customs broker to be an importer of record.

This is because the whole process is complicated and that a lot of skill is required to import the controlled goods.

Who Is the Importer of Record On DDP Shipments?

In DDP, an importer of record is defined as the foreign shipper of the cargo.

The foreign shipper is required entitled to obtain a customs bond by a customs broker through a freight forwarder.

How Long Does An Importer Of Record Service Take?

It is quite hard to foretell the particular time the importer of record service will take.

This is because the duration is influenced by factors like the country you shipping to and the consignment you are shipping.

In some cases, the importer of record service might take two to three days.

Although if the country has complex and complicated regulations, the importer of record of service might take longer.

The good thing is while requesting the quote, the importer of record service will offer you an estimate of the time they will take.

Often than not, the importer of record will inform you about every step of the way.

If My Goods Are Not Dual Use, Do I Still Need an Importer of Record?

Yes, you will still need an importer of record.

This is particularly true, especially if the consignee is unwilling to act as an importer of record.

In most cases, the consignee may be reluctant to be involved in the importing process as they may lack the experience to complete the process.

In other cases, the consignee may not have the right legal requirements needed to clear the goods.

Hence, if this is the case, whether your goods are dual-use or not, it is best to make use of an importer of record.

Can I Use a Logistic Provider When Using an Importer of Record Service?

Yes, you can use a logistic provider while still using an importer of record service.

The logistic provider will come in handy while meeting your freight services.

However, in other countries, it is best to make use of the importer of record service’s freight forwarder.

This will help ensure that there is a smooth operation.

If the importer of record service requires you to use their freight forwarder, it will be listed on the quote.

What Is Required to Start an Importer of Record Service?

You ought to have a packaging list, commercial invoice, and a product sheet for all the shipped products.

Note that more information may be required in certain countries depending on how complicated the importing process is in the country.

All the documents required are noted in the quotation provided by the importer of record service.

Which Regions Should You Use Importer of Record When Importing Goods?

Most countries require the goods being brought in their jurisdiction to have an importer of record behind it.

To avoid having any issues while clearing your goods, it is best to use an importer of record within any part of the region.

However, there are courses of events where you may not need an importer of record.

If you are importing your goods from countries like Canada, United States, and any country in the European Union, you can be your own IOR.

Such countries are referred to as open markets.

In these countries, it is relatively easy to conduct international trade.

Does The Importer of Record Own the Goods?

This question often arises whenever a client is making use of an importer of record.

There is a difference between the importer of record and the recipient of goods.

In most cases, the importer of record owns the goods.

However, the duration of ownership varies as it is often determined by the Incoterms of the batch.

In the scenario where the importer of record is also the recipient of goods.

Then the ownership of the cargo transfers according to the regulations set by Incoterms and remains permanent.

Case in example, in FOB shipment, the ownership of the cargo is changed to the importer of record once the goods are loaded on the shipment.

If a third party is involved, such as a freight forwarder, they tend to have temporary ownership of the goods during the importing process.

Note that the Incoterms of shipment recognize the temporary ownership.

Once the goods are disparaged to the end-user, the ownership changes from the third party to the final recipient.

Can The Exporter Be the Importer Of Record? 

In particular situations, an exporter is allowed to be the importer of record.

However, for you to have a smooth process, it is best that you choose a service that is good in import and export services.

This is because IT equipment is often strictly regulated.

Therefore, if you need to import and export the hardware in different regions, you need to work with a company that understands what they are doing.

Are There Any Limitations to Using Importer of Record?

The one limitation you might encounter while using the importer of record is the charges involved from using the importer of record.

There are various charges you will incur, and it can be quite expensive to make use of their service.

What Is the Difference Between Importer of Record and Export of Record?

An export of record is an individual or entity that ensures that the goods being exported abide by the given destination’s legislation’s international and local laws.

An import of record is a person or entity that makes certain that the goods being imported abide by international and local laws.

This is of the declared destination’s legislation.

An importer of record and export of record has some similarities in them.

The difference is more definitive when establishing the importer of record’s responsibilities and the export of record.

How to Find the Right Importer of Record Service?

There are few factors that you need to factor in while choosing an importer of record service.

The good thing about working with an excellent importer of record service is that they will help you have an easy shipping process.

Moreover, by using the right importer of record, you are certain that your goods are safe.

Make certain that you check the following factors while choosing an importer of record service.

1. Experience

The shipping process is not an easy task.

Hence, it will be of help to make use of a service that has ample experience in the industry.

Note that with the right experience, the importer of record service will know the documents or licenses they need for your goods to be cleared.

Also, the experienced importer of record service will have built a good rapport with the customs that will come in handy while clearing your goods.

2. Reputation

This is an important element that you ought not to ignore.

If the importer of record service has a bad reputation, you are likely to encounter a lot of frustrations from them.

There are various methods you can make use of while assessing on the service’s reputation.

One you could choose to make use of their site to check on the kind of reviews they might have received from their previous clients.

If the importer of record service has many negative remarks compared to the positive ones, then do not use them.

However, you ought to be careful while using this approach.

For the reason that there are times when the service might alter the comments.

For you to be certain that the approach you are using will offer accurate results, it is best that you make use of referrals.

If you have a companion or a colleague who might have used an importer of record service before, make sure that you ask them for a referral.

While conversing with the individual, ensure that you ask many questions that will help you know more about the company.

3. Cost

Remember that there are various charges you will incur from using the importer of record service.

The good thing is that most of these services tend to have dissimilar charges.

It will be of benefit if you make use of this information as you can compare different importer of record service’s fee.

Although do not make the mistake of entirely focusing on this element.

This is because you may end up working with a really cheap importer of record service.

But, in the end, be disappointed by the kind of service they offer.

Ensure that you also make use of quotes as they will help you avoid incurring unexpected charges.

4. Excellent Communication

It will be of benefit to make use of a service that sees the need to keep their clients up-to-date.

It can be quite challenging to assess if the company has excellent communication before working with them.

However, there are few things you can check, such as how fast they respond to your calls or emails.

If they delay responding to your messages, they might fail to have excellent communication.

5. Services Available

Before choosing an importer of record service.

It is ideal that you assess the kind of services they can offer.

There are the importer of record services that can offer warehousing and freight forwarder services.

Whereas there are those that do not have these services.

Hence before choosing the service, it is ideal that you assess your needs.

This will give you a give clear picture of the kind of services you need from the importer of record service.

6. License

You ought to ensure that the importer of record service has the right accreditation to conduct their service.

In most cases, the service often shares some of the licenses they have.

However, if it is not present, it is best that you ask for proof; you could ask for their license number.

By having their license number, you can easily check if their license number is legit.

Where Can I Find an Importer of Record Service?

There are different avenues you can make use of while trying to locate an importer of record service.

Here are some of the practices you can make use of:

· Making use of the Internet

With the available information we have at our disposal, it is quite easy to find an importer of record service.

The good thing about using this method is that it is inexpensive.

All you need is a working internet network, a smartphone, or a laptop, and you are good to go.

While using this approach, it is best that you ensure that you are wary of being duped.

Note that not all information available on the web is accurate.

In most cases, unlicensed services tend to offer inaccurate information about them, such as their address.

Hence check on these small vital details to ensure that you do not get duped.

· Visiting an Importer of Record Service’s Office

Physically going to their office is another way of finding an importer of record service.

The benefit of physically going to the office is that you will have a clear picture of what the company entails.

It will be easier for you to make the right decision as your evaluation of how the company presented itself will guide your decision.

The downside of using method is because it is quite expensive having to go from one office to another trying to find the right service for you.

The other downside of using this method is that it takes a lot of time.

This is because while making your visits, you will end up asking the prospects many questions, which in turn will consume a lot of time.

· Using a Third Party to Help you Find an Importer of Record Service

This is another method that can be of help while trying to find an importer of record service.

The third-party could include a consignee or a customs broker.

While using the third party, it is best that you ensure that they are involved in importing.

If they are not, it will be hard for them to allocate the right importer of record service for you.

A good third party personnel has the right connections and good relationships with people in their industry.

There are times the custom broker or consignee may ask for a fee while helping you to allocate an importer of record service.

Also, this might not be the best method to use if you are in a hurry to find an importer of record service.

This is because it is not easy to tell when the third party will find the right importer of record service for you.

· Making Use of Referrals

This is an approach that delivers the best results while trying to find an importer of record service.

Asking for referrals is inexpensive.

All you need is to inquire if some of your colleagues might have used an importer of record service before.

If they have, ensure that you ask how the service served them.

The good thing about requesting for referrals is that it is a reliable source.

Once you are pleased with a particular service, you can invest in them.

In case you have any questions about importer of records, feel free to contact us.