An importer of record (IOR) is the party legally responsible for bringing goods into a country: making sure they are allowed in, declaring them correctly to customs and paying the duties and taxes owed. On an ecommerce order, the IOR is either the shopper (when the parcel ships DDU), the brand itself, or a provider that acts as IOR on the brand's behalf. FlavorCloud acts as IOR for its merchants on DDP orders, so you do not need to register as an importer in each country you sell to.
This article explains what an IOR is responsible for, who the IOR is on a typical cross border order, when to use an IOR service and how to avoid customs delays.
What is an importer of record responsible for?
- Admissibility. Confirming the goods are allowed into the country and meet any product rules.
- Accurate declarations. Declaring the correct HS code, value, country of origin and description.
- Duties and taxes. Paying import duty and taxes such as VAT or GST.
- Customs liability. Answering customs questions and paying any penalties or additional charges after entry.
- Records. Keeping import records for the period the country requires.
Who is the importer of record on an ecommerce order?
- DDU orders: the shopper is usually the importer. They pay duties and taxes at delivery, and the parcel waits if they do not.
- DDP orders shipped on your own account: you are the importer, which can mean registering for import and tax IDs in each destination.
- DDP orders through an IOR provider: the provider takes on importer responsibilities, pays duties and taxes at the border and handles customs questions.
When do you need an IOR service?
Consider one when you:
- Want to ship DDP so shoppers never pay at the door.
- Sell to many countries and do not want an importer or tax registration in each one.
- Ship from the US to markets with strict import rules, such as the EU or UK.
- Have had parcels held, refused or returned because no one was ready to clear them.
How FlavorCloud handles IOR
On DDP orders, FlavorCloud operates as importer of record on behalf of its merchants. We calculate the full landed cost at checkout, collect and remit duties and taxes at the border, and act as first line support with customs if they need more information. Duties, taxes and customs fees are guaranteed, so if customs charges more than was quoted, FlavorCloud absorbs the difference. Learn more about Automated Customs Clearance.
How to avoid customs delays
Most holds come from incomplete or inaccurate product data. Before you ship, check that each product has:
- A correct HS code and a clear customs description. See Managing your customs description.
- The right country of origin. See Managing your country of origin.
- An accurate declared value. See Declared value and customs valuation.
- Any identifiers a market requires. See Adding product identifiers for the EU.
- No restricted or prohibited items for the destination. See Restricted and prohibited items.
Questions to ask an IOR provider
- Which countries do you act as IOR in, and which orders does it cover?
- If customs charges more than was collected, who pays the difference?
- Do I need my own tax or importer registration in any destination?
- Who answers customs queries, and how fast?
- How are returns and duty recovery handled?
FAQs
Is an importer of record the same as a customs broker?
No. A customs broker files the customs entry on the importer's behalf. The importer of record is the party legally responsible for the import and what is owed on it.
Is an importer of record the same as a merchant of record?
No. A merchant of record is the seller in the transaction with the shopper. An importer of record is responsible for the import at the border. With FlavorCloud you stay the seller, and FlavorCloud handles the import.
What is an exporter of record?
The exporter of record is the party responsible for the export from the origin country, including any export filings and export control rules. See Applicability of extraterritorial US export control laws.
Do I need an importer of record for DDU shipments?
Not usually. On DDU shipments the shopper normally acts as importer and pays at delivery, which is why DDU parcels are refused more often.
Questions about IOR for your account? Contact your FlavorCloud account manager.