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Selling your products across borders is easier than ever. But delivering them? That’s when things get tricky.
When you run an e-commerce business and start shipping products to other countries, you quickly learn there’s more to it than just printing a label and handing the package to a carrier.
One key part of international shipping is something called the Importer of Record, or IOR. If you’re unfamiliar with it, you’re not alone. Yet for any business sending goods abroad, understanding the role of an IOR — and how to arrange IOR services through a trusted partner — can make the difference between smooth delivery and costly holdups.
What is an Importer of Record? (IOR)
The IOR is the person or company officially responsible for bringing goods into another country. That can be your customer or a representative of your business. As long as they’re based in the destination country.
The IOR does not physically handle the goods, but does carry certain legal responsibilities:
- Main contact for the customs authority. (e.g. HMRC in the UK)
- Liable for the accuracy of import declarations, even if the sender creates wrong classification.
- Being the only party allowed to request corrections to certain customs data, like a wrong EORI number.
- In some cases, the IOR can request a tax refund, depending on the country.
For example, in Switzerland, an IOR is mandatory for imports exceeding CHF 100,000 per year.
Who is responsible for what: IOR vs EOR (Sender)
Even though the IOR is the one officially dealing with customs, the sender (that’s likely you) still has plenty of responsibility:
- Compliance
Making sure the goods follow the rules of the destination country, including proper classification and labelling is the sender’s responsibility. - Taxes and Duties
Who pays duties and taxes? That depends on your Incoterm agreement (e.g. DDP vs DAP). - Documentation
The documents, like invoices and packing slips, are almost always created by the sender of their logistics platform.
Basically, the IOR is legally responsible for what customs sees. Without an IOR, your packages can get stuck at the border or even sent back.
Why B2B sellers can't skip the IOR
In business-to-business shipping, the IOR isn’t optional. Many countries require the IOR to be locally registered.
If your buyer doesn’t want to take on the role and your company isn’t based in the destination country, your shipment might not even make it past customs.
And here’s the catch: very few companies want to be an IOR, because of the risks involved. That’s why many B2B sellers rely on third-party IOR services. Especially with sensitive goods like electronics or medical equipment, most logistics providers will politely decline.
Grow your business across borders
The Importer of Record might sound like a small detail, but it can make or break your international shipment. Don’t let customs slow you down.
Curious how to make global shipping less complicated? Get in touch!
