For a long time, we have discussed the importer of record, giving the exporter of record less attention. But that doesn’t make the exporter of record less significant.
Like the importer of record, the exporter of record remains invaluable in fulfilling export procedures. You may wonder, who exactly is the exporter of record? Who can be the exporter of record? When is an exporter of record required?
In other words, you have countless questions in your mind. Do not worry; this article discusses the exporter of record (EOR). You will find the answers to the aforementioned questions.
You will also learn the responsibilities of an EOR and who can be the exporter of record.
Let’s get the ball rolling!
Who is the exporter of record (EOR)?
The exporter of record is the entity legally responsible for successfully moving exported goods from the source to the destination country. The entity handles all export requirements, from packaging to customs clearance to global logistics.
The EOR also bears the risks for exported goods on behalf of the customer. If any damages, penalties, or concerns regarding the goods arise, the EOR is accountable.
Who can be the exporter of record?
By default, the exporter of record (EOR) should be the owner of the goods. However, the owner of the goods can opt to transfer the export responsibility to a third-party EOR or authorised personnel for some reason.
Here are some of the reasons the owner may transfer the export responsibility:
- The owner is unsure of the export procedures for the exported goods.
- The owner doesn’t specialise in international trade.
- The owner doesn’t have a registered entity in the export country.
- The exporter is unavailable to ensure a seamless export process.
- The exporter finds it more cost-efficient to partner with a third-party EOR than assume the EOR responsibilities.
Why do you need an exporter of record?
Here are the reasons you should consider the services of an exporter of record:
1. Expertise in cross-border transactions
Exporters of record specialize in international trade. They are legally authorized to facilitate the movement of goods and services to the global market.
They have the tools to ensure compliance with regulations, the safety of goods during transportation, and the timely delivery of exported goods. Hence, you can tap into EOR’s expertise and participate in global trade with minimal resources.
2. Experience in fulfilling export requirements
EORs with experience in cross-border trade understand the intricacies they should prepare for, from export declaration to logistics management.
They know how to seamlessly navigate the export procedures, from applying for export licenses (if any) to submitting required paperwork, including invoices.
Since they have facilitated similar transactions, they also know how to avoid hidden costs such as taxes and the undervaluation and overvaluation of exported goods.
Note: Choosing an exporter of record specializing in exporting products in your industry is essential. It ensures a seamless experience during compliance, choosing appropriate means of transport, and ensuring the safety of the goods.
3. Ensuring cost efficiency
In an export transaction, every hand that touches your goods deserves compensation.
Imagine the cost you should factor in to compensate for product packaging, duties and tariffs, transportation, unloading and offloading, warehouse expenses (if required), etc.
Compensating each of these service providers independently would be costly. It’s even risky when you do not have a way to establish the effectiveness of their services.
The exporter of record has established partnerships with the best service providers in the export supply chain. With the EOR as the central point of contact, you can save on costs and exceed your profit margins.
4. Managing global logistics
Some products, such as medical and IT equipment, require special handling during transportation. This includes safe packaging, ensuring the products are not exposed to damage while in transit, and safe unloading.
Exporters of record have invested in technologies such as route optimization, product tracking via IoT, and temperature-controlled trucks to facilitate special handling.
How much would it cost you to cater to these technologies independently? Since the EORs already have the technologies, you can leave the global logistics management in their hands.
Roles and responsibilities of an exporter of record (EOR)
The exporter of record plays a vital role in ensuring the timely and safe delivery of exported products.
Here are the five critical responsibilities of an EOR:
1. Product classification and valuation
The exporter of record is responsible for the accurate classification of exported goods. Once classified, the EOR and the customs authorities conduct a valuation to assess applicable duties and tariffs.
The classification also helps determine the required paperwork and documentation, including export licenses (if applicable).
2. Export customs clearance
The exporter of record is responsible for ensuring timely clearance of goods through various activities:
- Ensuring regulations compliance
- Provision of required export documents, including commercial invoices, packing lists, certificate of origin, and product licences.
3. Fulfilment of financial obligations
The EOR is also responsible for any other expenses that may arise during the export transaction.
For instance, the EOR accounts for any penalties arising from delayed delivery of goods or negligence.
4. Documentation maintenance
The EOR preserves the export transaction documents for the minimum duration the law requires. These records act as references during audits and are essential when renewing licences (if any) or ensuring future compliance.
5. Logistics fulfilment
The exporter of record ensures that goods move from the source to the destination country safely and in the shortest time possible.
They organise for the safest means of transport via the shortest route, factoring in any special requirements for the goods.
EORs such as Blackthorne ensure the goods are moved from the seller’s door to the buyer’s door expressly to avoid damage.
They achieve door-to-door delivery through freight forwarding services, including forward stocking and mini-forward stocking services at the destination country.
Exporter of record vs consignor
The consignor is essentially the EOR for your goods. It can be any of the following:
- The entity legally authorised to take ownership of your exported goods.
- The manufacturer of your exported goods.
- The source for your goods (if different from the manufacturer). For instance, it could be a warehouse.
What is the difference between an exporter and the USPPI?
An exporter is an entity, either a company or a person, that the customs authority allows to sell goods or services to a foreign country.
A US Principal Party in Interest (USPPI) is a person or company in the US eligible for a primary benefit in any export transaction. It could be the seller, manufacturer, customs broker, or an order party.
In most cases, the exporter is usually the USPPI. But a USPPI is not always the exporter. In a previous article, exporting from the USA, we discussed in-depth who can be the exporter according to the USPPI rule.
Can a freight forwarder be the exporter of record?
Freight forwarders negotiate the best rates and routes for the shipment of goods from one country to another. They also take responsibility for the movement of the goods, including customs clearance and documentation.
Essentially, the exporter of record and the freight forwarder are two different service providers.
However, established global logistics partners such as Blackthorne offer exporter-of-record services and freight forwarding services. In such a case the freight forwarder can be the exporter of record (EOR).
Transfer the exportation hassle to the experts
What if all you need to move your exported goods from source to destination country is a single contact person? That means you wouldn’t have to worry about packaging requirements, licensing and paperwork, and logistics management.
That is precisely what we (Blackthorne) offer when you partner with us for exporter of record services.
Our over 25 years of experience in global logistics have taught us that the best way to maximise global sales profits is having your entire export supply chain under a single management.
As a single contact person, coupled with our expertise and experience, we ensure:
- Compliance with local and international export regulations to avoid unnecessary expenses such as penalties and seizure of goods.
- Safe packaging and route optimization to ensure fast delivery and avoid damage to goods.
- Door-to-door delivery for safety and convenience.
- Accurate product classification and valuation for cost efficiency.
- Long-term compliance, including renewing of licences.
Besides, we have registered our entity in over 70 countries, catering to almost all your desired export destinations.
Want to partner with us? We are always available to get in touch and discuss how we can improve your exportation experience.
