What is Importer of Record?
The importer of record (IOR) is the party legally responsible for making sure imported goods comply with the importing country's laws and for paying the assessed duties, taxes and fees. In the United States, 19 U.S.C. 1484 limits who may act as IOR to the owner or purchaser of the goods, or a licensed customs broker designated by the owner, purchaser or consignee, and requires the IOR to make entry using reasonable care. The IOR is identified by an IRS employer identification number, a Social Security number or a CBP-assigned number, registered on CBP Form 5106 under 19 CFR 24.5. The IOR must also be covered by a customs bond, either a single transaction bond or a continuous bond. Other jurisdictions use different labels, such as the declarant or the importer named on the customs declaration, but the principle of one accountable party for the entry is similar.
Why it matters for forwarders
Forwarders often clear goods as customs brokers or agents, but acting as IOR is a much heavier commitment: the IOR is liable for duty underpayments, classification and valuation errors and penalties, sometimes years after release. Under 19 CFR 163.4, entry records generally must be kept for five years from the date of entry, so the IOR must be able to produce invoices, contracts and payment evidence on request. A frequent problem arises under DDP terms, when a foreign seller asks a forwarder to "be the importer" for goods it does not own, leaving the forwarder liable for data it cannot control. Non-resident companies can act as IOR in the US, but they need an importer number and a bond in place before the first entry, so set up Form 5106 and the bond well before the vessel arrives. Make sure the IOR number on the ISF, the entry and the bond all match, because mismatches cause rejections and holds.