Importer of Record (IOR) Services

Delivered Duty Paid (DDP) Terms

Many technology companies and web marketplaces require products to be delivered on Delivered Duty Paid (DDP) Terms. Under the terms DDP, the foreign seller is responsible for door to door delivery, the payment of import duties and any applicable taxes. Under the eleven Incoterms® Rules, DDP terms impose the maximum level of obligation on the foreign seller.   

Issues for Foreign Importers

In a straightforward import transaction, the consignee is usually the party paying import duties and taxes. Under DDP terms the consignee is not responsible for the payment of import duties and taxes, the foreign importer will be.

Generally, the import of products under DDP terms requires an Importer of Record (IOR) located or established in the place of importation. In many countries, the IOR is required to have proper documentation confirming that they meet all the necessary criteria.

If you are a foreign importer, under DDP terms you are legally liable for payment of duties, taxes, fees and compliance with customs and other government agency regulations pertaining to your imports. However, not all foreign importers want to register their business within the place of importation, file paperwork, classify their goods with Customs, arrange the payment of duties and taxes or apply for tax registration.

Many foreign importers are aware that they can file for tax reclaim. However, they are reluctant to file for this registration because they don’t want to charge tax to their local customers.

Those IOR who do apply for tax registration to benefit from any tax relief, often find tax refunds a lengthy process. The tax authorities will investigate each import separately, whilst reviewing the entire document trail. The process can take anywhere up to six months.

Many countries of importation set a high level of regulations, each enforced by a different government department. Some foreign importers find importing too confusing and so fail to develop additional international business, while others try to comply with the laws and regulations but find themselves in violation regardless and face fines, penalties or goods being forfeit.

What is an Importer of Record?

“Importer of Record” is a term used in customs law for the entity responsible for ensuring the imported products comply with local laws and regulations, filing a completed customs entry and paying the assessed import duties and other taxation for those products. The IOR needs to be established in the country, meaning the importer needs to have a local entity, established business or a physical presence, to take responsibility for customs procedures and declaring the import.

If a foreign company is importing and is not established, they can’t make a customs declaration for a shipment of products. The foreign company will require a third party that will need to act as the IOR. This third party could be a third-party service company, such as ICS Global Services Limited. 

How can we help?

Shipping products between countries can be an extremely complex process with some products being highly regulated, which is why you need to use an experienced Importer of Record. Working as the IOR, we are formally recognised as an official party within the international shipment transaction by the government.

We provide IOR services for foreign importers and take care of every phase of the importation from customs clearance to the payment of duties and taxes. As the IOR for your products we are responsible for all paperwork relating to import of your products, customs classification and we will arrange the payment of duties and taxes.

By working with ICS Global Services Limited, we will enable your business to supply products to customers whilst meeting import and trade compliance requirements. We act as importers on behalf of your overseas business.

ICS Global Services Limited do not take ownership of your products and do not resell them, but we perform services and distribute products for your business. Title to the products (at all times) remains with your overseas business, as the owners. 

If you would like more details, please call +44 (0) 118 932 8447 or email info@icsglobalservices.com  

ICS Global Services Limited