IOR & EOR – Importer on Record / Exporter on Record
Importing and exporting goods in international trade operations is often accompanied by regulation, financial burdens, and issues of compliance. Without an entity such as an Importer / Exporter of Record, it’s common for businesses to run afoul of the applied laws.
Since the IOR / EOR is becoming increasingly necessary in facilitating the import/export process, it’s vital to understand its role in quality supply chain management and to conduct these trading activities in the UAE.
What Is an Importer on Record (IOR)?
An Importer of Record (IOR) is the party with the responsibility of ensuring imported goods comply with the regulations stated by federal law and customs authorities of the destination country.
This involves ensuring the accuracy of the goods, preparing the right accompanying documents, applying for relevant import licenses, paying applicable duties and taxes, and arranging for customs clearance.
An importer of record can be an individual or entity fulfilling any of the following capacities in supply chain management:
- Owner / Buyer: who imports a shipment or has financial interests in the imported goods
- Customs Broker: who serves as an agent / legal entity in charge of making the appropriate documents available for customs clearance
- Exporter: who is licensed/authorized to export goods from country to country
- Consignee: who is designated to receive the goods upon import and customs approval
To become an IOR, you will need to apply for an importer of record number by presenting the following documents;
- Declaration of Power of Attorney (POA)
- Valid identification documents of the applicant
- Duplicates of the Articles of Incorporation document
The importer of record number is a unique ID number registered to a specific importer. With this number, goods you import into a certain country are identified as entries of your goods.
What Is An Exporter on Record (EOR)?
An Exporter of Record (EOR) is basically the same as the IOR, except that it applies to exporting rather than importing goods. The objective of the Exporter of Record is to ensure goods are taken out of an origin country through the correct export process.
An exporter of the record is an individual or an entity that obtains and subsequently files all documents regarding export clearance. Also, the EOR ensures exported goods are properly shipped, delivered to the recipient, and are paid for.
As such, the Exporter of Record is considered liable for shipments that do not reach the intended destination, as well as covering the resulting financial implications on your business.
An exporter of record may be the individual or entity that purchases and ships the goods to a destination country. In some cases, the EOR may also be the shipment owner. Otherwise, it could refer to a third-party service provider knowledgeable about and licensed to carry out EOR services.
Why Are IOR Services Important In the Supply Chain?
Aside from the US, EU, Canada, and a few exceptions, it’s most likely that you’ll utilize the services of the IOR service provider when importing goods into a country. When importing into the rest of the countries in the world, there are various licenses, permits, and authorizations required to import goods successfully.
And this is in addition to operating your business entity. So, in these parts of the world, IOR services are accompanied by expertise and experience in dealing with issues across the international chain, with the aim to make all processes easier.
In carrying out IOR services, the service provider assumes all the responsibility for presenting accurate documents and paying levied duties/taxes and tariffs on goods entering an importing country. As a result, there are fewer opportunities to violate Customs compliance laws, and hence reduced financial implications.
Since IOR services are based in the country of destination, service providers usually have in-depth knowledge of local practices and further ways to benefit from local regulations. Also, they easily deal with authorities at local customs checkpoints to prevent delays.
Most business organizations do not necessarily specialize in international trade laws. This is why using an IOR service enables you to focus on your main business and delegate import requirements to a reliable partner.
What Are the Benefits of Using IOR Services In the UAE?
When importing goods into the UAE, employing an IOR service provider has proven to be advantageous to businesses in quite a several ways. When using IOR services in the UAE;
- Goods imported into the UAE adhere strictly to specific import regulations to prevent delays,
- Documents accompanying goods are handled effectively to avoid potentially long and stressful customs clearance processes,
- There’s less of a need to establish a legal entity in the UAE, thereby saving costs
- Payment of duties and taxes are handled efficiently,
- Temporary storage and warehousing services provide further business solutions.
How Does Al Sharqi Help You?
With our wide network of partners at Alsharqi, we provide innovative business solutions. We are privileged to offer an excellent IOR / EOR service which includes;
- Acting as the Importer of Record / Exporter of Record,
- Preparing and presenting required documents,
- Paying customs duties and tariffs levied on imported goods,
- Obtaining clearance from customs authorities,
- Assisting with a refund, reclamation, and reconciliation issues,
- Providing quality freight forwarding and warehousing infrastructure
Basically, we offer advice concerning using an IOR service, compile a full list of needed import documentation, and provide assist generally in logistics and customs brokerage. In all, we aim to facilitate a successful import of goods.
For more information about our IOR / EOR services, visit our website today.
The process of importing goods can be quite hectic and complex, especially for businesses without adequate international shipping experience. Therefore, it’s beneficial to utilize an IOR to make the whole process less costly and more efficient.
Partnering with a trusted IOR service provider gives your business the advantages of quality knowledge and experience. The result you get is your business moving smoothly per laws governing international trade compliance.