Why You Need An Importer Of Record To Expand Globally
When you’re shipping or receiving goods, an Importer of Record (IOR) is the official entity responsible for proper importing and making sure your shipment clears customs. It is their legal responsibility to initially value, classify, and assess duties. They ensure local laws and regulations of the nation(s) where you’re sending your goods are properly followed. They complete and file bills of entry and other related documents and file them. They look after paying import duties, fees, and taxes on your shipments. They organize recordkeeping from start to finish. Overall, they assume any legal or practical risks related to getting your product into any country you require. In many nations, an IOR is legally required to be negotiated between the buyer and seller, and it’s completely logical that this is forced upon companies and their clients to ensure any red tape is swiftly dealt with.
It’s hard enough as an individual to buy products from other nations. For companies, it’s wise to partner with a third-party to take on the complex role of importer of record. It’s tricky for suppliers to attempt to take on this role themselves (when that’s even a legal possibility) because when a product is sold to a subsidiary or buyer in a foreign country, it becomes a local sale. A number of complications and responsibilities arise, in that case. The seller/supplier needs to be legally registered and have an entity in that nation; they must comply to all laws to operate there; taxes will be imposed on profits from the sale according to the local rate; currency and exchange issues arise; repatriation of profits need to be managed. A third-party partner frees you from these burdens and doesn’t carry the biases of either seller or buyer.
International trade is undoubtedly tricky, and if your business is in the IT equipment sphere, a whole host of additional risks and regulations apply. Using an IOR with a specialty in technology that has a massive presence in any nation you’d love to sell to can actually reduce costs to import IT equipment and even score you a refund on indirect taxes incurred. For example, TecEx offers IOR services with a presence in 160 countries and can doubly save you money with tax refunds. All clearance and filing is processed in their name, so all paperwork demands and taxes lie on the IOR’s shoulders. If you’re a value-added reseller, distributor, manufacturer, IT solutions provider, cloud service provider, network security firm, or if your company works in the data center sphere, your special case is covered.
If you think that a shipping company can take care of all of this for you, think again. They’re simply carriers who physically transport your goods. Certain companies may be able to act as your broker and perform clearance services, but you’re still required to have an importer of record. Big shipping companies specialize in moving product and aren’t concerned with clearing messy customs issues for you. Competent IORs with expertise in dealing with any roadblock that may slam down on your path, and with the presence to make the entire process run smoothly and quickly, is a clear choice.