WT100 Blog


Are You the Importer of Record?

June 15, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

Who’s the importer of record in this scenario:

An electronics company ships old cell phones to Canada to be refurbished. The cell phones are then shipped back to them in the U.S. They rely on their shipper to do their paperwork.

U.S. Customs asked them to produce routine paperwork, but they didn’t have it. Although they didn’t realize it, they are actually the importer of record

What should have been an everyday transaction with Customs turned into an investigation. Customs dug in and discovered that the country of origin, value and classification on their documentation were all wrong.

The U.S. company had to pay five years of back duties and interest -- over $200,000.

Unfortunately, they came to us, after they were already in trouble. We helped them find their way out.

Livingston International recently conducted a survey which showed 62 percent or respondents are concerned their company lacks knowledge about clearing goods for international trade.

This story demonstrates there’s good reason for this concern. A common confusion in U.S.-Canada trade is identifying the importer of record. The importer of record is not defined by who’s importing the shipment, but by the contract or International Commercial terms (aka Incotermsrules). Consequently, it’s not unusual for a company to be unaware they are the importer of record.

Just because it’s confusing doesn’t mean you can ignore it. It doesn’t matter how many links in the supply chain come between you and the final destination. Do your homework and find out where you fit in. As our client discovered – the hard way – there are hundreds of thousands of good reasons to protect your business.

 

Cora Di Pietro is vice president of consulting at Livingston International.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Five Wearable Manufacturing Technologies of the Future

Video applications, Employee Monitoring, Field service, Plant monitoring, Improving employee safety

Podcasts

Assurance of Supply: A Top Concern for Manufacturers

Every manufacturer has an assurance of supply problem to some extent due to the complexity of global sourcing. For years, manufacturers were blessed with high margins but margins have grown paper thin. You can’t fill up your distribution centers with excess inventory – not only is there a cost factor but the pace of business and consumer buying trends causes goods to quickly turn obsolete. Assurance of supply provides the speed and agility that is essential to being able to compete in today’s market.

 

Speaker info: Diane Palmquist, VP Manufacturing Industry Solutions

                                         

More Podcasts

World Trade 100 Magazine

wt october 2014

2014 October

Check out the October 2014 edition of World Trade WT100, featuring our cover story: Logistics Drives Site Selection, plus much more!

Table Of Contents Subscribe

Transportation Capacity

As peak season has gotten underway, what is your experience with transportation capacity?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members