If you’re navigating the world of global trade, you’ve probably come across the terms IOR (Importer of Record) and EOR (Exporter of Record). While they may sound like industry jargon, these roles are pivotal in ensuring smooth international shipping operations. Today, we’ll explain what IOR and EOR mean and why they’re indispensable to your global logistics strategy.
What is IOR in shipping?
The Importer of Record (IOR) is the authorized party responsible for bringing goods into a country. This role might be the buyer, the owner, or a third party, such as a freight forwarder or a licensed customs broker. Generally, businesses rely on third-party IOR services when the original importer cannot fulfill these obligations.
An IOR is accountable for:
- Ensuring compliance with all import laws and regulations in the destination country.
- Handling the payment of import duties, taxes, and any other applicable fees.
- Submitting the required permits, licenses, and documentation for customs clearance.
For instance, companies shipping goods via Amazon FBA often use IOR services to manage customs processes and avoid shipment delays. It ensures the entire operation remains smooth and legally compliant.
What does EOR mean in shipping?
The Exporter of Record (EOR), like the Importer of Record, ensures that goods are legally and efficiently transported from the origin to the destination. In most cases, the owner of the goods acts as the EOR.
When the owner cannot fulfill all export-related responsibilities, a third-party EOR steps in. This role requires expertise and licensing to handle the complexities of export compliance.
The prime duties of an EOR include:
- Manage export clearance documentation to meet legal requirements.
- Ensure shipments leave the port on schedule and address any delays or issues.
- Resolve customs-related inquiries raised by authorities in the country of origin.
- Cover compensation if shipment errors disrupt the delivery process.
Why do you need IOR and EOR numbers?
Whether you’re an Amazon FBA seller or global trader, IOR and EOR numbers are essential for several key reasons:
- Customs compliance: These numbers help customs authorities track and process shipments without delays or rejections.
- Legal necessity: Many countries mandate that goods have a designated IOR/EOR to clear customs, deterring illegal trade practices.
- Amazon’s requirements:Amazon often asks sellers to provide these numbers for seamless global operations. While Amazon can act as the ultimate consignee, sellers or their logistics partners must take on IOR responsibilities, such as managing customs paperwork and compliance.
- Ensure Product Safety: The IOR confirms that imported products meet local safety standards, especially for items like electronics, children’s toys, or medical devices.
How do you obtain IOR/EOR numbers?
1. Register your business
Begin by registering your company with the appropriate authority in your country. For example, you might register with the Chamber of Commerce or a similar organization.
2. Obtain a tax identification number
- In the U.S., apply for an Employer Identification Number (EIN) through the IRS website.
- In the UK and EU, register for a VAT number through your local tax authority’s online portal.
3. Set up with customs
Contact your customs authority to register as an importer or exporter. In the U.S., for instance, you’ll need a Customs Assigned Number, which you can get through the Customs and Border Protection (CBP) system.
4. Check for country-specific requirements
Research additional steps for certain markets. For instance, Japan requires a “Foreign Importer’s Number” for businesses that are not based locally.
Remember, the process varies depending on the countries involved in your trade. Consulting with local customs authorities or an experienced logistics provider can help you stay on top of the latest requirements.
What sets IOR and EOR apart?
The primary distinction between an Importer of Record and an Exporter of Record lies in their focus. The IOR handles import-related responsibilities, while the EOR manages export-related tasks.
Although their activities differ, the two roles often overlap in cross-border transactions. The specific responsibilities for each depend on the terms of the trade agreement and the roles assigned by the involved parties.
For example, in an international shipment, the importer must manage duties, VAT taxes, and local compliance, while the exporter ensures that goods leave the country legally and meet all export regulations. Both sides need to understand their responsibilities clearly.
The role of freight forwarders in EOR/IOR shipping
Freight forwarders can navigate the complexities of IOR and EOR shipping, especially when entering global markets. Here’s how we, as a trusted freight forwarder in China, can support your business:
- In certain scenarios, we can take on the role of Importer of Record. It simplifies the import process, particularly if you lack a legal entity in the destination market.
- With in-depth knowledge of customs regulations, we help you stay compliant in multiple countries. Our expertise reduces the risk of delays, fines, or shipment rejections.
- We assist with the administrative workload associated with customs clearance and trade documentation. It lets you focus on growth-oriented activities like sourcing products and marketing.
Furthermore, our ASLG Amazon FBA forwarding services offer fast, one-stop solutions at competitive rates. It makes it easier for you to streamline your global e-commerce supply chain.
