In an increasingly global business environment, your organization can be subject to several different rules and regulations across international borders. Ensuring the seamless transfer of goods from one country to another while staying compliant with local laws can be a difficult task.
If a vital aspect of your business is dependent upon the shipment of goods and services to ports outside of your country, then it is essential that you have a knowledgeable overseas entity representing your needs in overseas markets. An exporter of record (EOR) fulfills these duties.
The Role of the EOR
Many businesses make the mistake of assuming that responsibility for incoming shipments falls to the receiving party, on the contrary most customs departments require you to name the exporter of record before the shipment is even made.
The EOR will identify and gather all specific documents and licenses necessary for export as per local law. It is solely their responsibility to ensure your shipment complies with regulations, any criminal charges due to breaches of duty or fines will be levied on the EOR, not your business. If the local customs authority has any questions regarding the shipment then they will be directed towards the EOR, as well. Remember, that if your business does not designate a specific party to be its EOR, then all of these responsibilities will fall upon you, as the shipper, you will have to deal with any of the export issues that arise. By enlisting the help of an EOR, the responsibility for coordinating the safe and timely arrival of your goods at their port of call, and any of the related payments falls upon this entity.
How an EOR Can Help Your Business
One the main issues that export heavy businesses deal with is violating customs laws. Often this is due to business practices that are considered negligent, these compliance issues can result in heavy penalties and if the underlying problems aren’t corrected it can delay shipments and costs firms a great deal of money. An EOR can help guide your business through the complex minefield of these regulations, preemptively alerting you of any possible concerns so you can deal with them beforehand.
The EOR can also handle liaison between your business and your chosen forwarding agent, providing necessary details about the shipment such as: required names and addresses, port of origin, nature of goods, description of shipment including quantity and value as well as any other details required by the importer’s receiving agent. All of this data is used to create detailed export declarations that are necessary for international trade.
EORs will maintain vital shipment records for periods of up to five years in case of audit, and can be relied on to provide accurate and timely information. When businesses decide to handle their own EOR duties, or worse designate the role to an individual or party not experienced with customs regulations, often these records are inadequate or improperly formatted. Third party EORs provide expertise and proven experience covering multiple countries providing timely, legally compliant and accurate shipments that meet the needs of both sellers and buyers.