What is an Importer of Record (IOR)?

The Importer of Record is the party legally responsible for ensuring that imported goods comply with all U.S. laws and regulations, that a correct customs entry is filed, that the right duties and fees are paid, and that import records are kept. The role and its duties are defined primarily in 19 U.S.C. §1484. The IOR — not the freight forwarder or seller — carries the legal liability for the import.

What are the responsibilities of the Importer of Record?

The IOR must file a complete and accurate entry; declare the correct HTS classification, customs value, and country of origin; pay all duties, taxes, and fees; exercise reasonable care; ensure compliance with other agencies (FDA, EPA, USDA, etc.); maintain records for five years; and post a customs bond. These duties remain the IOR’s even when a licensed customs broker prepares the paperwork.

What is "reasonable care" for an Importer of Record?

Reasonable care is the legal standard in 19 U.S.C. §1484 requiring the importer to take real, documented steps to get the entry right — for example, properly classifying goods, correctly valuing them, determining the country of origin, and seeking expert advice or a binding ruling when unsure. CBP can impose penalties when an importer fails to exercise reasonable care, even without intent to defraud.

Is the Importer of Record liable for customs penalties?

Yes. The IOR is the party CBP holds liable. Under 19 U.S.C. §1592, CBP can assess penalties for material false statements or omissions on an entry, graded by culpability — negligence, gross negligence, or fraud — in addition to recovering any unpaid duties plus interest. Liability stays with the IOR even when a broker filed the entry.

What is the difference between the Importer of Record and the customs broker?

The Importer of Record is the legally responsible party. The customs broker is a CBP-licensed agent who prepares and files the entry on the IOR’s behalf under a power of attorney. The broker provides expertise and convenience, but the legal liability for classification, valuation, duty payment, and compliance remains with the Importer of Record.

What is the difference between the Importer of Record and the consignee?

The consignee is the party to whom the goods are shipped, and the ultimate consignee is the final recipient or owner in the U.S. The Importer of Record is the party responsible for the customs entry and duties. They are often the same company, but not always — for example, a non-resident importer can be the IOR while a U.S. customer is the ultimate consignee.

Do I need a customs bond to be an Importer of Record?

Yes. CBP requires a customs bond to guarantee payment of duties, taxes, and fees and compliance with regulations. Frequent importers use a continuous bond (covering all entries for a year), while occasional importers can use a single-entry bond for one shipment.

What is an Importer of Record number?

The IOR number is the identifier CBP uses to track an importer. For U.S. businesses it is typically the IRS-issued Employer Identification Number (EIN); for individuals it can be a Social Security Number. Foreign companies without a U.S. tax ID can apply for a CBP-assigned importer number using CBP Form 5106.

Can a foreign company be the Importer of Record?

Yes. A foreign company can act as a non-resident importer (NRI) and be the Importer of Record. It must obtain a CBP-assigned importer number, post a U.S. customs bond, and generally designate a U.S. resident agent for service of process. Being the IOR lets a foreign seller offer delivered-duty-paid terms to U.S. customers.

What is a non-resident importer (NRI)?

A non-resident importer is a company located outside the United States that acts as the Importer of Record for goods it sells into the U.S. The NRI takes on the duty payment and compliance responsibilities itself, rather than passing them to the U.S. buyer, which can simplify the customer’s experience but increases the foreign company’s U.S. customs exposure.

What records must the Importer of Record keep, and for how long?

The IOR must keep all records related to the import — entry documents, invoices, classification and valuation support, and payment records — for 5 years from the date of entry. These are the "(a)(1)(A)" records under 19 U.S.C. §1508, and CBP can request them during an audit or Form 28/29 inquiry.

What happens if the Importer of Record declares the wrong HTS code or value?

A wrong classification or value can mean underpaid or overpaid duty. Underpayment exposes the IOR to back duties, interest, and §1592 penalties, and can trigger a CBP audit. Overpayment can often be recovered through a Post-Summary Correction (within 300 days) or a protest (within 180 days of liquidation). Either way, the IOR — not the broker — answers for the error.

What is a Power of Attorney in importing?

A customs Power of Attorney (POA) is the document by which the Importer of Record authorizes a licensed customs broker to file entries and act on its behalf with CBP. The POA enables the broker to transact business, but it does not transfer the IOR’s legal liability to the broker.

Can I use a third-party Importer of Record service?

Yes. Third-party IOR services let another entity act as the Importer of Record — common when a seller cannot or does not want to be the IOR. The third party then assumes the entry, duty, and compliance responsibilities. Choose carefully: the IOR of record bears the liability, so the arrangement must be properly documented and the party must genuinely qualify as owner/purchaser or authorized agent.

Who pays the duties — the Importer of Record or the broker?

The Importer of Record is responsible for the duties. A broker may remit payment to CBP on the importer’s behalf as a convenience, but the legal obligation to pay — and the bond that guarantees it — belongs to the IOR.

Is the Importer of Record the same as the seller or shipper?

No. The seller or shipper is the party sending the goods; the Importer of Record is the party responsible for the U.S. customs entry. On many shipments the buyer is the IOR, but under delivered-duty-paid (DDP) terms a foreign seller may act as a non-resident importer and take on the IOR role itself.

How do I become an Importer of Record?

Obtain an importer number (an EIN for U.S. businesses, or a CBP-assigned number via Form 5106 for foreign entities), post a customs bond, and — if you use a broker — grant a power of attorney. From there you are responsible for filing accurate entries, paying duties, exercising reasonable care, and keeping records.

What law governs the Importer of Record?

The core obligations come from 19 U.S.C. §1484 (entry and reasonable care), with recordkeeping under §1508, penalties under §1592, and implementing regulations in 19 CFR. CBP administers and enforces these rules at the border.

Pillar guide

Importer of Record (IOR)

Q: Who can be the Importer of Record?

Under U.S. customs law, the Importer of Record must be the owner or purchaser of the goods, or a customs broker appointed by the owner or purchaser. The owner or purchaser can be a U.S. company, a U.S. individual, or a foreign company acting as a non-resident importer. A foreign seller generally cannot file as IOR unless it qualifies as the owner/purchaser and meets the bond and identification requirements.

The Importer of Record is the entity legally responsible for ensuring imported goods comply with U.S. law, paying the duties, and keeping the records. This guide covers the role, who can hold it, its liabilities, and the reasonable-care standard.

What is an Importer of Record?

The Importer of Record (IOR) is the party that U.S. Customs and Border Protection holds responsible for an import. The IOR files the entry, declares the HTS classification, value, and origin, pays the duties, and keeps the records. Defined chiefly in 19 U.S.C. §1484, the role carries the legal liability — which is why it matters who holds it.

Who can be the Importer of Record?

The IOR must be the owner or purchaser of the goods, or a licensed customs broker appointed by them. That owner/purchaser can be a U.S. company, a U.S. individual, or a foreign company acting as a non-resident importer.

The IOR’s responsibilities

✓File a complete and accurate customs entry for the goods
✓Declare the correct HTS classification, customs value, and country of origin
✓Pay all duties, taxes, and fees owed to CBP
✓Exercise "reasonable care" in every declaration (19 U.S.C. §1484)
✓Ensure the goods comply with all other agency requirements (FDA, EPA, etc.)
✓Maintain import records for 5 years from the date of entry
✓Post a customs bond guaranteeing payment and compliance

Reasonable care and liability

The IOR must exercise “reasonable care” — taking real, documented steps to classify, value, and declare goods correctly. Get it wrong and CBP can recover back duties and interest and assess penalties under 19 U.S.C. §1592, graded by culpability (negligence, gross negligence, or fraud). Crucially, this liability stays with the IOR even when a broker filed the entry.

IOR vs. broker vs. consignee

These three roles are easy to confuse but legally distinct:

Importer of Record

Legally responsible for the entry, duties, and compliance. Bears the liability — even if a broker files.

Customs broker

A CBP-licensed agent who files entries on the IOR’s behalf under a power of attorney. Not the liable party.

Consignee / ultimate consignee

The party that receives the goods. May or may not be the IOR; the ultimate consignee is the final recipient.

Foreign and non-resident importers

A foreign company can be the IOR as a non-resident importer. It needs a CBP-assigned importer number (Form 5106), a U.S. customs bond, and usually a U.S. resident agent for service of process — which lets it sell on delivered-duty-paid terms while taking on the U.S. customs exposure itself.

HTS Code Lookup →

Classify goods correctly — a core reasonable-care duty.

Duty Drawback →

The IOR holds the rights to recover duties on re-exports.

UFLPA Compliance →

Forced-labor screening the IOR is responsible for.

Importer of Record frequently asked questions

Everything importers ask about the IOR role, its responsibilities, and its liability, answered.

Reasonable care, on autopilot

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