Importer of record

The importer of record (IOR) is the party that enters goods with U.S. Customs and Border Protection (CBP) and answers for that entry. It must classify and value the goods with reasonable care, pay the duties, and keep the records. Under U.S. law, the IOR must be the owner or purchaser of the goods, or a licensed customs broker designated by the owner, purchaser or consignee.

Who can be the importer of record

The law says the entry is filed "by the owner or purchaser of the merchandise or, when appropriately designated by the owner, purchaser, or consignee of the merchandise, a person holding a valid license" as a customs broker. It adds that "the importer of record must be one of the parties who is eligible to file" (19 U.S.C. 1484(a)(2)(B)).

CBP's Form 7501 instructions describe the IOR as "the individual or firm liable for payment of all duties and meeting all statutory and regulatory requirements incurred as a result of importation."

What this means in practice:

• If you buy goods abroad for your business, you are the purchaser, so you can be the IOR.
• A foreign company can be the IOR, but a corporation not incorporated within the U.S. customs territory or the U.S. Virgin Islands may not enter goods for consumption unless it has a resident agent authorized to accept service of process in the state where the port is located, and a bond with a resident corporate surety (19 CFR 141.18).
• A licensed customs broker can file as your agent under your power of attorney, and you remain the IOR. A broker becomes the IOR only when designated under the rule above.

The IOR, the consignee and the ultimate consignee can be different parties. The entry summary has separate blocks for each.

What the importer of record is responsible for

Reasonable care. The IOR must, "using reasonable care," file the "declared value, classification and rate of duty" for the goods (19 U.S.C. 1484(a)(1)). CBP then fixes the final classification and value. Classifying means choosing the right Harmonized Tariff Schedule (HTS) code; see how to find your HTS code.

Paying duties. Duties are "a personal debt due from the importer to the United States." Paying your broker doesn't end that debt: "Payment to a broker covering duties does not relieve the importer of liability if the duties are not paid by the broker" (19 CFR 141.1(b)). You may pay duties directly to CBP even when you use a broker.

A bond. For formal entries, CBP won't release goods until a single entry or continuous bond is on file, with limited waivers (19 CFR 142.4). A bond protects CBP. It "does not relieve the importer of liabilities" (19 CFR 141.1(b)). See our customs bonds guide.

Records. Records relating to an entry must be kept "for 5 years from the date of entry" (19 CFR 163.4(a)).

Corrections. If you find an error before the entry liquidates, you can file a post summary correction, subject to CBP's time limits. See our Form 7501 guide.

Other agencies. Some products also fall under other federal agencies, such as the Food and Drug Administration or the Consumer Product Safety Commission. Their data and rules apply at entry too.

Getting set up as an importer of record

1. Get an importer number. CBP identifies importers by their Internal Revenue Service employer identification number (EIN), or a Social Security number if there is no EIN. Without either, CBP assigns a number. You provide it on CBP Form 5106, the Create/Update Importer Identity Form, which must be filed "with the first formal entry" (19 CFR 24.5). If the number isn't used for 1 year and has no outstanding transaction, CBP removes it from its files, and a new Form 5106 is needed (19 CFR 24.5(e)).
2. Choose a customs broker, or file yourself. A broker must have a valid power of attorney from you before acting in your name (19 CFR 141.46). CBP Form 5291 may be used (19 CFR 141.32). If a freight forwarder refers your business to a broker, the broker must still sign the power of attorney directly with you, "and not via a freight forwarder or other third party" (19 CFR 111.36(c)(3)). Find brokers on our broker page.
3. Get a bond. A continuous bond covers a year of entries. A single transaction bond covers one entry.
4. Classify your products and check the full duty, including any Section 301 or Section 232 tariffs, in our duty calculator.

What happens when something goes wrong

Civil penalties for material false statements or material omissions on an entry are set by 19 U.S.C. 1592. The maximums depend on culpability:

• Negligence: up to the lesser of the domestic value of the goods or two times the duties, taxes and fees lost. If no duty was lost, up to 20% of the dutiable value.
• Gross negligence: up to the lesser of the domestic value or four times the lost revenue. If no duty was lost, up to 40% of the dutiable value.
• Fraud: up to the domestic value of the goods.

Telling CBP about a violation before a formal investigation begins, called a prior disclosure, lowers these maximums if you pay the duties owed (19 U.S.C. 1592(c)(4)). Separately, the bond sets liquidated damages for some failures, such as $5,000 per violation of the Importer Security Filing (ISF) rules.

Importer of record and ISF importer

For ocean cargo, the ISF importer is "the party causing goods to arrive" at a U.S. port by vessel (19 CFR 149.1). It can be the same company as the IOR, but doesn't have to be. The ISF itself asks for the IOR's number as a separate data element.

If someone offers to be your importer of record

If a service offers to act as your IOR, ask how it qualifies under 19 U.S.C. 1484(a)(2)(B) before you agree. It must be the owner or purchaser of the goods, or a licensed broker you have designated. Also ask who will pay if CBP later assesses more duty. A licensed customs broker or a customs attorney can review the arrangement.

Questions

Can a foreign company be the importer of record?

Yes, if it qualifies as owner or purchaser of the goods. A nonresident corporation must have a resident agent authorized to accept service of process in the state of the port of entry, and must file a bond with a resident corporate surety, under 19 CFR 141.18.

Is my customs broker the importer of record?

Only if you designate it. A broker can file your entries as your agent under a power of attorney, and you remain the importer of record. U.S. law lets a licensed broker be the importer of record when appropriately designated by the owner, purchaser or consignee of the goods.

What number do I need to be an importer of record?

Your Internal Revenue Service (IRS) employer identification number (EIN), or a Social Security number if you have no EIN. If you have neither, CBP assigns an importer number. You register it with CBP on Form 5106, which must be filed with your first formal entry.

How long must an importer of record keep records?

Five years from the date of entry, under 19 CFR 163.4(a), for records relating to an entry. Some records have different periods; for example, drawback records and packing lists follow their own rules.