What Is an Importer of Record (IOR)?

Every time goods cross an international border, someone must be legally responsible for getting them through customs correctly. That person or business is the importer of record (IOR).

If you're bringing goods into the United States or Canada, understanding who holds this role, what it requires, and what's at stake if something goes wrong is essential before your first shipment arrives.

What Is an Importer of Record (IOR)?

The importer of record is the party legally responsible for ensuring imported goods comply with all customs laws at the time of entry. This includes accurate tariff classification, correct declared value, timely filing of customs entries, payment of all duties and taxes, and maintaining records for the required retention period. The IOR is accountable to U.S. Customs and Border Protection (CBP) in the United States and the Canada Border Services Agency (CBSA) in Canada.

The IOR designation is a formal legal status, not simply a description of who ordered the goods. Whoever holds it accepts full liability for the shipment.

Importer of Record vs. Importer: What's the Difference?

The terms are often used interchangeably, but they mean different things in a legal context.

An importer is the party purchasing or receiving goods from another country. An importer of record is the party legally accountable to customs authorities for those goods at the border. They are often the same entity, but not always.

Consider a scenario where a U.S. company orders electronics from a supplier in Taiwan. The U.S. company is the importer. If they have designated a third-party compliance service to handle entry on their behalf, that third party may be the importer of record.

The distinction matters because CBP and CBSA hold the IOR responsible for compliance failures, regardless of who actually placed the order or arranged the shipment.

Who Can Act as Importer of Record?

Four parties are eligible to serve as the importer of record, and whoever accepts the role accepts the legal liability that comes with it.

Eligible parties include:

• The owner of the goods at the time of importation
• The purchaser of the goods
• The consignee, provided they have sufficient knowledge of import regulations
• A licensed customs broker, authorized by the owner, purchaser, or consignee via Power of Attorney

When a customs broker acts as IOR, a formal Power of Attorney document must be in place. This grants the broker legal authority to make entry on your behalf.

The important caveat: delegating to a broker does not transfer your liability. CBP and CBSA hold the underlying owner or purchaser responsible if an entry contains errors.

Can a Foreign Company Be the Importer of Record?

Yes, in both the US and Canada, foreign companies can act as the importer of record, though each country has specific requirements.

In the United States, a foreign entity can serve as IOR but must have a U.S.-registered surety bond and typically works through a licensed customs broker with a Power of Attorney in place.

In Canada, foreign businesses can import under Non-Resident Importer (NRI) status. NRI registration requires obtaining a Business Number (BN) from the Canada Revenue Agency and registering with CBSA. Once registered, an NRI can take ownership of goods at the point of origin and manage customs clearance on behalf of their Canadian customers.

NRI status is a significant commercial advantage for U.S. exporters selling into Canada. It simplifies the buying experience for Canadian customers, who receive goods with duties already handled. For more on importing into Canada as a non-resident, A & A's Canadian customs team can walk you through the registration process.

Importer of Record Responsibilities

The IOR's core legal obligations under both U.S. and Canadian customs law cover five areas:

1. Accurate tariff classification — Every product must be assigned the correct HS (Harmonized System) code. Misclassification leads to incorrect duty rates, potential penalties, and delays.
2. Correct customs valuation — The declared value must reflect the actual transaction value of the goods. Under-declaring value to reduce duties is a customs violation.
3. Timely customs entry filing — In the US, formal entries must be filed within 15 calendar days of arrival. CBSA has similar filing requirements for commercial imports.
4. Payment of duties, taxes, and fees — The IOR is responsible for all amounts owed at the border, including any anti-dumping or countervailing duties that apply.
5. Record retention — The IOR must maintain all import records and supporting documentation for five years in the US and six years in Canada.

These obligations stem from the Customs Modernization Act (US), which places the standard of "reasonable care" on every importer of record. Acting with reasonable care means you cannot simply hand off paperwork to a broker and assume compliance is covered. The IOR is expected to understand what's being imported and verify that entries are accurate.

For businesses managing a high volume of shipments, customs compliance support from a licensed broker reduces the risk of errors across all five areas.

What Is an Importer of Record Number?

The importer of record number (IR#) is a unique identifier that CBP uses to track an IOR's import activity. It appears on every customs entry.

In the United States, CBP accepts three formats:

• IRS Employer Identification Number (EIN) — used by corporations and partnerships
• Social Security Number (SSN) — used by sole proprietors and individuals
• CBP-assigned number — issued by CBP if you have neither an EIN nor an SSN (common for foreign entities without U.S. tax registration)

In Canada, the equivalent identifier is the Business Number (BN) issued by the Canada Revenue Agency. The BN appears on all CBSA entries filed under your account.

If you don't yet have an importer of record number, a licensed customs broker can guide you through obtaining one before your first shipment arrives.

What Happens If the Importer of Record Gets It Wrong?

Customs errors carry real financial consequences. CBP can assess penalties under 19 USC 1592 at three levels depending on the severity of the violation:

• Negligence — up to two times the unpaid duties, or 20% of the dutiable value
• Gross negligence — up to four times the unpaid duties, or 40% of the dutiable value
• Fraud — up to the full domestic value of the merchandise

Beyond monetary penalties, CBP can seize goods, revoke import privileges, or require costly prior disclosure proceedings.

The liability falls on the IOR, not the broker. Even if a customs broker made the filing error, CBP holds the importer of record responsible for the accuracy of the entry. This is why working with a licensed customs broker on classification and valuation review is a risk management decision, not just an administrative one.

Importer of Record in Canada vs. the United States

The IOR role exists in both countries but operates under different regulatory frameworks.

United StatesCanadaGoverning bodyU.S. Customs and Border Protection (CBP)Canada Border Services Agency (CBSA)IOR identifierEIN, SSN, or CBP-assigned numberBusiness Number (BN) from CRABond requirementSurety bond required for formal entries (goods over USD $2,500)CBSA bond required for commercial importersRecord retention5 years from date of entry6 years from end of fiscal yearForeign company optionYes, with U.S. surety bond and Power of AttorneyYes, via Non-Resident Importer (NRI) status

For businesses importing into the US from Canada, the CBP bond requirement is a common point of confusion. A licensed U.S. customs broker can arrange a continuous bond that covers all shipments in a given year.

Frequently Asked Questions

Does the importer of record need a customs bond?

In the United States, a customs bond is required for all formal entries, which applies to commercial shipments valued over USD $2,500. The bond serves as a financial guarantee that duties and fees will be paid. The IOR is responsible for having one in place before entry is filed.

In Canada, commercial importers are required to post a bond with CBSA. The bond amount is based on the volume of duties typically owed.

Can a freight forwarder be the importer of record?

A freight forwarder can act as importer of record only if they hold a licensed customs broker designation and the IOR has formally authorized them via Power of Attorney. A forwarder without a customs broker license has no legal authority to make entry on another party's behalf.

How long does the importer of record need to keep records?

Five years from the date of entry in the United States. Six years from the end of the fiscal year in Canada. Records must be available for CBP or CBSA audit on demand and should include purchase orders, invoices, bills of lading, entry documents, and proof of duty payment.

How A & A Customs Brokers Helps Importers of Record Stay Compliant

Managing IOR obligations across both the US and Canada requires up-to-date knowledge of two regulatory systems, consistent classification practices, and accurate recordkeeping on every shipment.

A & A Customs Brokers has provided licensed customs brokerage services in the US and Canada for over 46 years. Our team handles tariff classification, entry filing, duty calculation, NRI registration, and compliance audits, reducing the risk of penalties and delays for importers at every volume level.

Have questions about your IOR obligations? Request a consultation with our customs team and get answers specific to your products and trade lanes.

Conclusion

The importer of record carries full legal accountability for every customs entry, from the accuracy of the HS code to the completeness of records kept years after the shipment clears.

Understanding who holds that role, what the requirements are in each country, and where the liability falls is the foundation of a compliant import program. For businesses crossing the US-Canada border in either direction, the stakes are the same: get it right at entry, or pay for it later.

A & A Customs Brokers works with importers of record across both countries to keep shipments moving and compliance in order. Contact our team to discuss your specific situation.