Importer Of Record: Understanding The IOR Service And Global Trade

Importer Of Record Understanding The IOR Service And Global Trade

The history of importers of record and offshore import solutions is not that old, since the time IT and Telecom companies started thinking about expanding their business beyond their physical boundaries the need for an importer of record started raising. Global trade has gained more strength in the past 3 decades than ever before and IOR service providers have become true strength for IT and Telecom companies willing to distribute their technology.

IT and Telecom companies are now more focused on one-window solutions for all their cross-border sales. Logistics is a sophisticated endeavor and Tech companies find it a new vertical which needs more human resources and extra financial backup. That is why OEMs, IT, Telecom, and other manufacturing companies use 3PL or 3rd party logistics services. That is where the term Importer Of Record emerged.

What Is An IOR (Importer Of Record)

IOR or Importer of Record is a term used for a legal entity or company that is authorized by the local government to import goods on behalf of their customers. To put it more simply we can say that an IOR service provider becomes your logistics partner and import all your shipments in its name, get them cleared from customs, apply for all necessary permits and approval, and get them delivered to the end user.

Who Can Be An (IOR) Importer Of Record

A company or an individual who has the legal authority to import goods in that country. A company with a legal import license with a defined CR (commercial responsibility) to import IT and Telecom goods. These IOR service providers have been in place to save a lot of money for small manufacturers and service providers.

In some countries registered companies do not require an import license, they can import goods on their own. Countries like the USA, Canada, and Mexico are good examples where USMCA allows shipping between these countries.

In other regions like Russia and CIS, there are strict regulations in place on who has the right to become an IOR service provider. In Russia, they must have a local office and they should have an approved list of equipment that is only allowed to them for import.

Whether you have the import license or you are legally allowed to import a 3rd party service provider is always a good option. Later, we will discuss why it is a wise decision to use a 3rd party service provider.

Responsibilities Of And (IOR) Importer Of Record

IT and Telecom sectors use IOR services the most because they have global operations, and they need to distribute their technology across international borders. An IOR provider can perform a variety of tasks during the shipping process. Let’s discuss each in detail:

Customs Clearance

All the shipments are consigned to the IOR and hence they become the legal entities to perform the import process from inception to completion. The very first step of the import process is customs clearance. An IOR service provider is aware of all the customs regulations. They prepare import documents and pay the duty and taxes.

Import Permits

Import permits are one of the most important documents that are needed while importing. Some countries do not require any kind of import permit, while some have very strict rules in this regard. Developed countries have fewer restrictions and import permits requirement. An IOR is responsible to arrange all sorts of import permits to get the goods cleared from customs.

Import License And Certification

IT and Telecom equipment or goods that are referred to as “Technology” are considered sensitive when it comes to imports. Shipping them across the international border is a sophisticated task. Every country has different requirements for technology import. An IOR service provider is responsible to acquire all sorts of import licenses and certifications to complete the import process.

Duty/Tax Payment

Since the shipment is being imported in the name of the IOR provider, the IOR provider is legally bound to pay all the import duties and taxes. Customs duties and taxes are different depending on the country you are importing. Developed countries have fewer duties and taxes whereas underdeveloped countries have a high percentage of duties and taxes.

Last Mile Delivery

Once the goods are cleared from customs, they are to be transported to the end user warehouse or data center. The IOR service provider is assigned to deliver the goods to the end user in most cases. From regular inland trucking to white glove delivery importer of record is responsible to transport the goods to end users. Sometimes the IOR provider is only responsible for customs clearance.

Return Merchandise Authorization (RMA)

As explained earlier the IOR provider is assigned to import IT and Telecom goods which are prone to defects and faults. In some countries, the export rules are very strict and only the first importer is allowed to export the goods back to its country of origin. A reliable IOR service provider helps in importing the goods and in case the equipment is required to be replaced they can also export it back.

Looking For An Importer Of Record Service Provider?

Are you looking for an importer of a record service provider who can help you with imports in some of the most remote locations of the world? Are you looking for an IOR provider who can provide a one-window contact for imports in more than 170 countries?

We at One Union Solutions provide a 360 solution for all your IT and Telecom needs. From sourcing the right equipment for your data centers up to the last mile delivery and deployment we can provide you with seamless service with utmost dedication and customized solutions. We have been servicing the Tech industry for the past five years and for every customer we provide a custom solution that fits their needs. We can help you fulfill all your data center needs right in one place.
Contact our Tech Logistics specialist and get a customized solution for all your sourcing, logistics, and deployment needs.

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