What is IOR in India?

In India, IOR stands for Importer of Record. The IOR is the individual or legal entity officially responsible for ensuring that imported goods comply with all Indian laws and regulations. This includes handling documentation, securing necessary licenses and permits, paying duties and taxes, and maintaining accurate records.

The IOR plays a critical role during the customs clearance process. Typically, the IOR is the buyer or consignee of the goods. However, in certain cases—especially in cross-border trade involving drop shipments or third-party logistics—the seller or a designated agent may act as the IOR.

Key responsibilities of an IOR in India include:

• Filing Bill of Entry with Indian Customs.
• Ensuring compliance with Foreign Trade Policy (FTP) and Customs Act, 1962.
• Paying applicable Customs Duty, GST, and cess.
• Obtaining import licenses from authorities like DGFT, if required.
• Ensuring compliance with product-specific regulations (like FSSAI, BIS, WPC, etc.).

Failure to fulfill IOR obligations can result in penalties, delays, or seizure of goods. For foreign companies without an Indian presence, appointing a local IOR is essential to facilitate legal and smooth import operations. Thus, the IOR serves as the legal face of the import process in India.