How do I get an IOR?

To get an Importer of Record (IOR) status in India, businesses must follow a few essential steps that ensure legal compliance with customs and import regulations:

1. Register for an Import Export Code (IEC): This is a mandatory 10-digit code issued by the Directorate General of Foreign Trade (DGFT). It’s the first step and a prerequisite for importing goods into India.
2. Get a valid GST Registration: The IOR must be registered under the Goods and Services Tax (GST) system, which is necessary for tax compliance and documentation during import clearance.
3. Open a Customs Broker Account (optional): While not mandatory, working with a licensed customs broker or CHA (Customs House Agent) can help streamline the IOR process, especially for new or foreign businesses.
4. Ensure compliance with BIS and other regulatory bodies: Depending on the type of goods being imported (electronics, batteries, etc.), the IOR may also need approvals from regulatory authorities like BIS (Bureau of Indian Standards), WPC, or FSSAI.
5. Maintain a valid business presence or appoint a third-party IOR service provider: If you are a foreign company without a legal entity in India, you can appoint a local service provider to act as your IOR, ensuring they handle customs clearance, tax payments, and compliance on your behalf.
6. Customs Registration (AD Code, etc.): Register your bank’s Authorised Dealer (AD) Code with customs at the port of import. This enables electronic payments and monitoring of forex transactions.

Being an IOR involves both responsibility and accountability — the IOR is liable for the legality, valuation, classification, and compliance of the imported goods.