Here we will discuss what an EOR is and who might serve in that capacity, and their obligations. Additionally, you can learn more about our EOR Services. There are many aspects to international trade compliance, but in our writings, the one that has received less attention up to this point is the EOR.
The EOR is a crucial service which ensures that overseas shipments are handled with care, correctly tracked and that businesses are capable of adhering to trade compliance standards and laws.
To summarize the main goals of global trade compliance: shipments must adhere to all local import/export requirements, laws, and regulations. This includes importation and exportation permits, restrictions, tax payments, and duties where relevant. Goods, whether imported or exported, must be correctly described and valued. There is a demand that an EOR must be indicated on each shipment.
Who could act as an EOR?
The legal exportation entity for commodities leaving a country is an EOR. The exporter or record is frequently the shipper and could be the owner of the products. The exporter could be a consumer returning merchandise to the seller or maker. For instance, many customers return outdated technology products for replacement or upgradation. The exporter could also be a supplier sending brand-new items to a customer. If the owner is not the EOR, he may be a licensed and experienced third-party export service provider.
Obligations of EOR
Much like the Importer of Record, it’s the EOR’s responsibility to follow the customs procedures of that country needed to export those products. These responsibilities would entail getting all the paperwork required for export clearance, like permits and licenses, and ensuring the products being shipped have a precise and unambiguous description and value.
- The EOR could be subject to severe monetary fines, legal trouble, or both if compliance rules or processes are broken. The same level of penalty applies if the EOR is even aware of negligence or knows that a violation has happened but does not take action to address it or report it.
- The EOR is accountable if the goods fail to reach their destination. Also, the EOR is liable for any financial repercussions to the recipient if delivery is not made or the product is not delivered on time.
- If a forwarding agent is involved in the transaction, an EOR must also send complete information about cargo to that person.
Need for EOR
Since taxes and duties are rarely due when products are exported, one might imagine that the owner of the items would desire to take up the role of EOR. However, the owner might lack trust in their understanding of the export procedures. In that scenario, it could be best to let a third-party handle this to prevent errors and their possible financial or legal repercussions.
Reasons why EOR is important and when it is needed
An EOR may be necessary for the following reasons:
- When sending brand-new items, the supplier or producer may not be aware of the export regulations or may not have a legal presence in the country from which the goods are being exported.
- Since the items might not be brand-new, the owner is unsure how to determine their fair market worth.
- The item may be considered aged when returning it to the manufacturer or supplier or reaching the end of a contract. In this case, an item appraisal is also necessary.
- The items are being replaced with a newer model because they are no longer in production. Such items must be evaluated.
- The products are damaged; they may have been delivered improperly and require replacement; alternatively, they may need to be returned to the manufacturer or supplier for repair.
What distinguishes an exporter from a shipper?
The business that sold the items is known as the Shipper. The company in charge of carrying out the proper export procedure for the commodities out of the country of origin is the EOR. The Shipper and Exporter are frequently in the same business. However, there are some instances where an end-user wants to return warranty products, or the Shipper does not want to deal with the export process. In this case, a third-party company like ours will function as the Exporter.
Does the Freight Forwarders provide EOR Services
Resources and expertise are needed to serve as the EOR for controlled products. For these products, an exporter must have an export license and follow strict customs procedures. Freight forwarders typically lack such resources and expertise. In general, freight forwarders don’t provide EOR services.
Our EOR services
In most countries worldwide, our company has vast expertise serving as an EOR for technology and IT equipment.
We have a clear protocol for analyzing the goods at the point of origin if they are being returned and are aging. We can advise you on repacking services. There is rarely original packaging for Worn-out, damaged, or broken; therefore, it must be replaced. In addition, we’ll make sure that the goods’ value and export compliance requirements are properly stated to local customs officers.
How One Union Solution help you as Exporter Of Record?
Exports must follow all local import/export rules, laws, and regulations. By ensuring that foreign shipments are accurately traced and that businesses can adhere to trade compliance standards and regulations, the Export of Record offers a crucial service providing exporters with peace of mind while they enjoy their global business.
