Importer of Record: Removing the Complexities of International Trade - Hardware
 
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Importer of Record: Removing the Complexities of International Trade

24th July 2019 | In Technology
 

Background

Importer (and Exporter) of Record services have gained prominence within the IT sector over the past 5 years as all areas of the IT channel look to expand their Global footprint and customer IT infrastructure moves into remote data centre facilities. Often referred to as IOR and EOR, these services exist to remove the complexity and red tape associated with cross border trade and customs procedures. Several key players have emerged to provide consultative services for IT businesses, ensuring compliance with all import and export obligations whilst providing crucial added value to the end customer.

What is IOR?

“Importer of Record” is a term used in customs law. When the supply chain involves import of goods across international borders, most governments require your company to have an established business or other resident legal entity to take responsibility for conducting the import and export transactions.

The Importer of Record is often the owner or purchaser of the imported goods, but it can also be a properly authorised agent or legal entity in the destination Country if the end-user does not want to be involved in import procedures.

Not all IT businesses have the luxury of in-house expertise in Global trade compliance to navigate through the complexities surrounding cross-border trade. Employing an IOR service provider removes the administrative headache and allows you to concentrate on what you do best; closing the deal!

When to use IOR services?

The first question that should always be posed to the buyer; “Do you have a fiscal presence in your chosen Country of delivery”? If the answer is no, IOR services can be employed to assist the customer with importing their goods; removing the risk, unwanted complication and expense.

An Importer of Record has responsibility for:

  • Ensuring import compliance with the import regulations in the given country
  • Payment of the relevant taxes, duties and other fees for the imported goods
  • Filing the correct documentation, permits and licencing
  • Maintaining any records for the minimum duration required under local law.

How much will it cost me?

At first glance, IOR services can seem expensive but once you have used it once, you will ask yourself “why didn’t I use this before?”. Fundamentally, the piece of mind that these services provide far outweighs the potential penalties that could be imposed for exporting and importing incorrectly.

IOR services are typically calculated based on a percentage of the commercial value of the goods plus relevant administrative fees applicable to specific regions. However, IOR should always be viewed as a value-add service rather than a necessary cost of sale.

Hardware and IOR/EOR

Hardware have long been providing IOR and EOR services to their customers around the World and have extensive knowledge with importing into some of the most difficult Countries and Regions including Russia, Iran, India, Central Africa and South America.

Utilising established relationships throughout the logistics industry, Hardware can provide best-in-class services to import and export your goods even if they were not procured through Hardware originally.