How to know If custom clearance should be outsourced to Importer of Record IORs?


Posted on May 1, 2020



If your business operation involved importing and exporting goods, then there is no way to get around the provisions of customs clearance. You might be able to get your products cleared on the destination ports of your own country. However, it is one stressful task to get your things cleared without the help of experienced Importers of Record (IORs)

 

When you should outsource IOR?

Here, we are going to discuss the cases where you should resort to Importer of Record IOR services for customs clearance.

  • When you can take care of customs clearance on your own

If you have to deal with a bulk of import/export declarations, then it might be better to work-out a dedicated in-house team for that. However, even in this instance, it is better if you do the cost analysis of cargo handling beforehand on your own. You can also go for customs clearance on your own if you are shipping to countries that offer free customs clearance systems.

  • If You Are Offered a Collect Offer

Many IORs and EORs put forward collect offers on a particular number of line items and import/export declarations. If that number matches with what you are operating with, then you should go to professional Importer of Record

  • Working with a Few Export/Import Declarations

If you are working with a couple of import declarations, then it won’t be wise to set up an entire in-house department for dealing with customs clearance. Freight forwarders, Importers of Record (IOR) can be of great assistance when there are limited import and export declarations to deal with.

 

Advantages of Outsourcing Your Customs Clearance to IORs

There are multiple benefits of outsourcing your customs clearance to IORs.

The process of obtaining all the necessary licenses for importing to Japan or any other countries can take months. If you do not have this time to wait or you wish to import goods only a few times, using an importer of record is the solution for you.

One of the most common mistakes companies make is thinking that they can send large shipments just by using an international shipping agency. Those companies are responsible for delivering the products from point A to B. However; you would still need an Importer of Record with an appropriate license to get the products through the local customs.

  • Smooth and seamless customs clearance

The entity responsible for the customs clearance will be from the local market which is a tremendous asset because it is not possible to pass your goods through the customs clearance when the consignee does not have the correct import license. Thus, the risk of your shipment getting stuck in the customs will be lower.

  • Focus on your core business

Importing your goods is a time-consuming process. In addition to your main activities, such as producing high-quality goods or growing your business, you also have to think of how to deliver your products to other markets.

Dealing in imported goods might not be your business’s core competency. You might experience administrative overburden by dealing with cargo clearance on your own. You can protect your business from that unnecessary and unproductive work by availing the services of IORs.

 

A business can’t keep tabs on all the updates in custom laws if it doesn’t have relevant professionals. It’s not necessary to have the same customs clearance approach all the time. Keep in mind the overall profitability and administrative load while deciding what clearance option will turn out best for you.

 

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