Imports goods into India on your behalf & (depending on scope of work) delivers them to your desired location.
Ensure complete compliance of Indian law for Import
Files all required documents related to the Import
Procures all necessary licenses and certifications for the goods being imported
Ensures timely payment of various duties and taxes
Need for IOR services?
Need of IOR services for Foreign Companies:
If a foreign company wishes to test it’s product in the Indian Market by itself, it must
Appoint an Indian Director
Set up a subsidiary in India
Build a team in India
Comply with Indian laws
This setup requires huge investment for a market that may or may not work out for the foreign company.
Using an Importer of Record in India the foreign company can get its product imported into India and test the Indian market.
It allows the foreign company to understand whether their product sells in India, which in turn mitigates risk of not achieving product market fit.
It also allows them to test their product much faster as an IOR service provider like JPARKS INDIA Pvt Ltd already has the general licenses & can easily obtain the product specific licenses.
Thus hiring an Importer of Record service provider allows the foreign company to enter the Indian markets without having to invest much time and capital.
Need of IOR services for Indian Companies
The reason why an Indian company may prefer to import goods via an Importer of Record is
To outsource burden & responsibility of compliance
To avoid delays in Import as the IOR has basic licenses
Lack of experience with Import compliance
If they don’t plan to import regularly
Thus It’s much cheaper & less of a headache for first time importers to hire an IOR.
Do you need IOR Services – Questions to Consider
To determine whether you should hire an Importer of the record or carry out import yourself, consider the following questions
Do you plan to Import goods regularly?
Do you have a team to handle the compliance work?
Are you well informed about the various licenses & certification required to Import your product?
Are you aware about the process of Importing & clearing your goods in India?
If you plan to import regularly, but are uncertain about any of the above questions, speaking to a professional import export consultant like JPARKS INDIA will help you gain clarity.
Does the Importer of Record In India Own the goods?
The ownership of goods must be transferred to your entity by executing a transaction between the IOR Importer of Record and your entity.
Importer of RecordRequirement
An Importer of Record (IOR) is the party legally responsible for importing goods into India. The IOR must be a resident of India and must have a valid importer-exporter code (IEC).
The IOR is required to complete all necessary customs formalities and paying any applicable duties and taxes.
Importer of Record Responsibilities
Assessment & payment of duties & taxes correctly
Valuation of goods based on Indian laws
Accurate classification of goods
Ensure timely filing of Import documents with required declarations under various laws
Procurement of required licenses & certifications for the goods (guide to refrain from importing prohibited goods & ensure regulatory compliance for restricted goods)
Complying to State & Central laws
Clearing the goods from customs through a good reputed and informed Custom Brokers
Appointing a valid Power of Attorney if Importer or Indian representative is not available
Preparation & record of all necessary documents in case audits and inspections
Maintain all import records for at least 8 years after being imported into India for future queries from governmental agencies
Availing relevant benefits from the Foreign Trade Policy to benefit the client
Importer Of Record in India VS Consignee In India
Importer of Record (IOR)
The Importer of Record (IOR) is the party legally responsible for importing goods into India. The IOR is responsible for ensuring that all import formalities are completed correctly and that all applicable duties and taxes are paid. The IOR must also be able to demonstrate that they have the legal right to import the goods.
The consignee is the party who will be receiving the imported goods. The consignee may be the same as the IOR, but it is not always the case. For example, a company may import goods for a customer, in which case the customer would be the consignee.
Differences between the IOR and the consignee
The following table summarizes the key differences between the IOR and the consignee in India:
Importer of Record (IOR)
Legally responsible for the imported goods, including ensuring that all import formalities are completed correctly and that all applicable duties and taxes are paid.
Not legally responsible for the imported goods.
Ownership of the goods
May or may not own the imported goods.
Does not own the imported goods until they have been cleared through customs.
Liability for import duties and taxes
Responsible for paying all applicable import duties and taxes.
Not responsible for paying import duties and taxes, unless specified in the sales contract.
What is included in an Importer of Record Agreement in India ?
An Importer of Record Agreement is a contract between a company (importer) and an IOR in which the Importer of the record agrees to import goods on behalf of the importer.
Key elements of an Importer of Record Agreement in India
An IOR Agreement in India should include the following key elements:
Parties to the agreement: The names and addresses of the importer and the IOR.
Scope of work: The services to be provided by the IOR, such as customs clearance, payment of duties and taxes, and compliance with Indian laws and regulations.
Fees: The fees to be charged by the IOR for their services.
Liabilities: The liabilities of each party in the event of errors, delays, or other problems with the import process.
Governing law and dispute resolution: The law that will govern the agreement and the procedure for resolving any disputes that may arise.
Additional considerations for Importer of Record Agreements in India
In addition to the key elements listed above, there are a few other things to keep in mind when drafting an IOR Agreement in India:
The IOR must be a resident of India and must have a valid importer-exporter code (IEC).
The IOR Agreement should be in writing and signed by both parties.
The IOR Agreement should be kept up-to-date to reflect any changes in the relationship between the importer and the IOR, or in Indian laws and regulations.
How to draft an Importer of Record Agreement in India
It is advisable to have an IOR Agreement drafted by an experienced lawyer. This will help to ensure that the agreement is legally binding and that it protects the interests of both the importer and the IOR.
IOR Customs Clearance Process in India
The IOR Customs Clearance Process in India is as follows:
Prepare the required documentation. This includes the bill of lading, commercial invoice, packing list, certificate of origin, and any other documentation required by the Indian Customs Department.
Submit the documentation to the Indian Customs Department. The documentation can be submitted electronically or in person.
Pay the applicable duties and taxes. The amount of duty and tax payable will vary depending on the type of goods being imported.
Clear the goods from customs. Once the duties and taxes have been paid, the IOR will receive a customs clearance certificate. The IOR can then take possession of the goods.
Non Compliance Risk of not using IOR Services in India
Importing goods into India without proper compliance could have extreme financial & business consequences.
Imported goods can be seized by Customs
You may be forced to re export the goods back to the seller
Fines & penalties can be levied along with the duties based on valuation of goods
A lack of due diligence prior to importing may lead to numerous issues that would sideline your business goals. If you are unaware about the process & compliance of Import, it is highly advisable to hire professional import consultants like JPARKS INDIA to help you safely import your goods into India.
How to choose the right IOR services provider?
When you look for an Importer of Record, ideally you should talk to at least a few service providers. Consider the following points before you select an Importer of Record for your business:
Years of experience : more years = better knowledge of laws
Expertise in your industry & previous experience
Do they provide a fair market rate?
Quality of work – this can be gauged through systems & processes you encounter at the time of initial discussion.
Do they have a good & sizable team that can handle your volume?
Is the IOR covering all the details and regulations in their scope of work or are you or your end customer still liable to do some legal work on their own.
Will they provide a Power of Attorney, in case you need one?
Do they provide a one stop solution for logistics, storage, packing & delivery too? An end to end service equals less headache for you!
Most Importantly, do you like working with them or see yourself working with them in the long term? Having an IOR you can trust will save you a lot of time & effort in the long run.
Importer Of Record Services | IOR Services by JPARKS INDIA
At JPARKS INDIA we provide complete IOR services, right from Import to last mile delivery we handle everything. To provide a complete done for you experience besides regular IOR responsibilities we include services like
Freight forwarding, Logistics & warehousing
Packing & Loading etc
So you get time to focus on the business, instead of spending time on technicalities of Import.
With a team having over 40 years of experience in Import Export, JPARKS INDIA is the right Importer of Record for you.
An Importer of Record (IOR) is a legally responsible party for the importation of goods into a country. The IOR is responsible for ensuring that all import regulations are complied with and that all applicable duties and taxes are paid.
Why would I need an Importer of Record?
There are several reasons why you might need an Importer of Record. For example, if you are not based in India, you may not have the necessary licenses and permits to import goods on your own. Additionally, the import process can be complex and time-consuming, and an IOR can help you to avoid any potential problems.
What services does JPARKS INDIA offer as an Importer of Record?
JPARKS INDIA offers a comprehensive range of Importer of Record services, including:
Duty and tax payments
How much do JPARKS INDIA’s Importer of Record services cost?
The cost of JPARKS INDIA’s Importer of Record services depends on a number of factors, such as the type of goods being imported, the country of origin, and the destination address. To get a quote, please contact us today.
How do I get started with JPARKS INDIA’s Importer of Record services?
To get started, simply contact us and provide us with some basic information about your import needs. We will then provide you with a quote and discuss the next steps.
Had a great experience with JPARKS team. They Reactivated my company's IEC within a few hours! The team is highly knowledgeable, dedicated and very prompt with addressing the queries. Highly recommend!!!
Very good experience with this company. Mainly Mr Mr Rahul is a very sincere person. I have many experiences with work consultant firm . JPARKS INDIA PVT LTD ONE OF THE BEST CONSULTANCY FIRM I EVER SEEN
JPark consultants are excellent in their work and provides the best services related compliances pertaining to import, export, DGFT, IEC code authorisation, AD code, ICEGate portal registrations, EPR registration, DIC etc etc . U name it and they will do it for u. They cover every topic so well and give proper guidance and advise to the companies they work with.We are a Chemical MNC having offices in India and we did all the registrations pertaining to customs thru JPark. Mr Rahul who is the proprietor is very humble, soft spoken, competent and knowledgeable person and he handles the customer queries / inquires perfectly. Once u submit your documents to them u don't have to look into anything, as Mr Rahul takes complete charge and keeps u posted from time to time. All the registration part is done smoothly within the stipulated time frame. We are very very happy with JPark services and will definitely recommend JPark to all those who have any work related to customs. Also Mr Sanjay their senior Director has vast experience in the field of Custom broker and his presence in the company is also added advantage. It's like a complete package deal. We are grateful to JPARK for making things easier for us. Thanks.
Great experience with JPARKS INIDA Pvt Ltd for my Importer of Record requirement. They were quick to address the my enquiry and delivered them to me at my warehouse without any delays. Great team with vast experience, highly recommended!