When the Broker Must be the Importer of Record?
In-depth knowledge of import/export procedures is required during the shipping of goods. Apart from the procedures, there is always the issue of documentation as well as payment of taxes and other tariffs. Due to that, corporations and companies have sought the help of customs brokers and importer of records. And while their jobs might be unique, there are cases where the broker might also be the importer of records. Find out how below.
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So, what’s the difference?
We understand that this article is being read by a varying clientele. We thought it would be prudent to first clear the air with some primary information. There is a clear and stark difference between the customs broker and the importer of record.
In most cases and countries, the customs broker is a person or entity that is licensed to offer certain services by the local customs authority. He or she always acts on behalf of an importer or exporter. The customs broker has a good knowledge of customs and tariff laws as well as the regulations and processes of importation and exportation. They are responsible for assisting exporters and importers meet federal and state requirements regarding their shipment.
An importer of record (IOR) is the official owner or purchase of an imported shipment and is responsible for the valuation, documentation, and payment of taxes. The IOR will be held liable for the clearing of the goods as well as any importation processes and procedures.
From the two definitions, it is clear that the IOR is the legal importer of the goods and has to ensure that the goods meet their intended destination. It is also possible to hire a third-party IOR due to the legal ramifications and procedures at the border/point of entry.
When the broker is also the importer of records?
Upon the arrival of goods at the point of entry, the IOR will need to declare himself and ascertain full responsibility for the goods. However, in the scenario where the original purchase cannot be IOR, the only individual at the border who can accomplish the task of an IOR, will be the customs broker. For the sake of that shipment, he or she will be both the customs broker and the importer of record
At IOR Africa, we understand the complexities that are involved with the importation and exportation business. We have offered our invaluable services to hundreds of clients all over the world. We have handled goods worth millions of dollars successfully and without any fuss at the destination country. We want to offer the same to you. For a smooth shipping process, get in contact with us and request our IOR services.