What does an Importer on Record do?

An Importer of Record (IOR) is the legally recognized entity responsible for ensuring that imported goods comply with all laws and regulations of the destination country. In India, the IOR plays a critical role in the customs clearance and compliance process. Here’s what an IOR does:

1. Customs Compliance: The IOR ensures all imported goods are declared properly and comply with Indian customs laws, tariff classifications, and valuation norms. They are accountable for the accuracy of all documents submitted.
2. Duties & Taxes: The IOR is responsible for paying all applicable import duties, IGST, cess, and other charges at the time of import. They also ensure that invoices reflect the correct value and description of goods.
3. Documentation: The IOR provides and manages essential documentation like the Bill of Entry, commercial invoice, packing list, import licenses, and compliance certificates (like BIS or WPC, if required).
4. Clearance & Logistics: The IOR liaises with customs brokers, port authorities, and freight forwarders to ensure smooth cargo clearance and delivery to the final destination.
5. Regulatory Approvals: If the goods require pre-approvals or compliance with regulatory bodies like FSSAI, CDSCO, DGFT, etc., the IOR ensures all necessary certifications are in place before import.
6. Record-Keeping: The IOR must maintain detailed import records and be prepared for post-clearance audits or inquiries by customs or tax authorities.

In essence, the IOR shoulders full legal and financial responsibility for the import transaction, making them a critical link in cross-border trade operations.