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OUR GOAL
To provide an A-to-Z e-commerce logistics solution that would complete Amazon fulfillment network in the European Union.
You already decided to expand your brand from your domestic market (say, USA) to Europe, hoping you'll find plenty of new customers there. But before your products can get through the European borders, you need to read through the legal requirements of selling in EU. As you go through guides about customs rules, import VAT, required registrations, and documentation, one term keeps showing up again and again: Importer of Record (IOR).
At first, it may seem like just another formal requirement on a long list of EU obligations. But the more you read, the clearer it becomes that having someone take on this role is essential if you want your goods to legally enter the European market. The problem is, the guides might not answer the various questions you, as a non-European brand, might have about this role. Who actually can act as the Importer of Record? Can your business take on that role if you are based outside the EU? And why do European authorities need this information before goods are even allowed to clear customs?
We'll answer all those questions in the following article.
What is an Importer of Record (IOR)?
When you import goods into the European Union, customs authorities need to know one thing clearly: who is legally responsible for that shipment. That responsible party is called the Importer of Record, or IOR. Under the Union Customs Code, every shipment entering the EU must be linked to a specific legal entity, who will be identified in the customs declaration as the importer, and is officially recognized as the party accountable for the goods.
In practice, acting as the Importer of Record means that you (or another designated entity):
confirm that the customs declaration is accurate,
ensure the correct customs value and product classification are declared,
take responsibility for paying customs duties and import VAT,
keep the required documentation related to the import,
and respond to any questions from EU customs authorities.
The reason why EU authorities require someone mentioned as IOR in the custom documents is simple: customs authorities need someone they can hold accountable if something in the declaration is incorrect, if duties are unpaid, or if the goods do not meet EU requirements. That's why without a clearly identified Importer of Record, or when an incorrect entity is written as IOR, the shipment cannot be properly released into free circulation in the EU and thus the clearance process may pause while customs clarifies who is actually responsible. That is why this role should be defined early — ideally before your first shipment is prepared and sent to EU countries.
Why does the EU require an Importer of Record?
If you look at it from the EU’s perspective, the logic behind the Importer of Record is actually pretty understandable. When goods enter the European Union, they are not just moving across a border. They are entering a regulated market with specific rules on taxation, product safety, labelling, and compliance, where many of those laws are much stricter than they are in the USA or Asia. First, someone must be financially liable for customs duties and import VAT - and the authorities need to know who ensures that these amounts will be paid and who eventually they can contact in case the duties or VAT is underpaid/overpaid.
Second, custom authorities also need contact details to the person responsible for filling the custom declarations and, in case something is missing (product classification, customs value, origin of goods, and other required data), can explain the discrepancies in the documents, send missing documents or add corrections to the declaration. Plus, EU rules require import-related documents to be kept for a defined period of time and the Importer of Record is the entity expected to maintain those records and present them if requested.
In other words, the IOR provides structure and accountability within the customs system as without it, there would be no clear legal link between the goods entering the EU and the entity responsible for them. Customs authorities need to know who is responsible for making sure those rules are followed - and the responsible party is precisely The Importer of Record.
In the next section, we’ll look at who can actually take on that role, as this part is especially often misunderstood by sellers based outside the European Union.
Who can be an Importer of Record in the EU?
If your company is already established in the European Union, the answer is relatively simple: your EU entity can act as the Importer of Record, provided it is properly registered and holds a valid EORI number. The situation becomes more complex if your business is based outside the EU and you are planning to sell directly to European customers, though. Under the Union Customs Code, the importer is generally expected to be a party established within the European Union, as customs authorities want a legally identifiable entity within the EU that can be quickly contacted in case of any import issues - without dealing with language barriers or time zone differences.
So what does that mean for you if you are a non-EU e-commerce brand? You typically have three options here:
1. You establish your own EU entity
If you plan to have a local presence in a chosen EU country and, for example, set up a branch office in Italy, then the simplest option is to appoint the branch office as the official Importer of Record for goods entering the EU.
This way:
it is listed as the importer in customs declarations,
it becomes responsible for import VAT and customs duties,
and it carries the legal responsibility toward customs authorities.
This option gives you full control over how your goods are imported and how your EU operations are structured. At the same time, it means that you take on ongoing administrative and tax obligations in the member state where the company is established though. Depending on the country, this may include local VAT registration and reporting, corporate tax compliance, accounting requirements, and maintaining a registered address. You will also need to manage bookkeeping, statutory filings, and potentially local representation, even if your physical operations are limited to storage and distribution, so it might not be a viable choice for you if you are just starting to build your brand in Europe.
2. An EU-based business partner acts as the IOR
Another possible structure involves working with an EU-based distributor or commercial partner who agrees to act as the Importer of Record. In this case, the EU partner imports the goods in its own name and under its own EORI number, and they are listed as the importer in the customs declaration and assume responsibility for duties, import VAT, and compliance toward customs authorities.
In this setup:
The EU partner becomes legally responsible for the import,
Duties and VAT are handled under their structure,
and the goods are released into free circulation under their entity.
However, this setup is more common in traditional B2B distribution models than in pure direct-to-consumer e-commerce, as when the EU partner acts as the Importer of Record, they typically become the legal owner of the goods at the moment of import. That means they purchase the goods from you (often under agreed Incoterms), import them into the EU market, and then resell or distribute them locally.
3. Indirect customs representation
If you do not have your own EU company, and you are not working with an EU distributor who imports the goods in their name, then in some cases, you can work with an EU-based customs representative who agrees to act under what is called indirect representation.
What does that actually mean in practice?
Normally, when you hire a customs broker, they simply prepare and submit the customs declaration on your behalf while you remain fully responsible as the importer. The broker handles the paperwork, but they are not legally liable for the customs debt. Indirect representation works differently.
Under this model:
The customs representative submits the declaration in their own name,
They indicate that they are acting on your behalf,
and both you and the representative share legal responsibility for the import.
In other words, the representative becomes jointly liable for customs duties and import VAT related to that shipment. Because this structure involves shared liability, though, not every customs broker offers it, as some will only operate under direct representation, where the responsibility stays entirely with the importer. In addition, the availability and practical application of indirect representation may differ between EU member states.
Does the Importer of Record depend on where you ship your goods?
Now time's for the question we hear really often: does the IOR requirement change if we ship to Amazon FBA or to a 3PL warehouse? Can they take over those responsibilities for us?
The short answer is: no, the delivery location alone does not determine the Importer of Record. But there are a few cases where who the IOR is should be DOES change.
Let’s look at the most typical scenarios.
Shipping directly to customers (D2C model)
If you ship products directly from outside the EU to individual customers in Europe, the Importer of Record will depend largely on your chosen Incoterms and your customer experience strategy:
If you sell under DDP (Delivered Duty Paid) terms, you as the seller take responsibility for duties and import VAT. In this case, you (or a properly structured representative or EU entity) would typically act as the Importer of Record. But if you sell under DAP (Delivered At Place) terms, the customer may be responsible for paying duties and VAT upon delivery, and this way, the customer can effectively become the importer for customs purposes.
However, D2C brands rarely use DAP terms, since those require the buyer to handle duties, VAT and custom documentations, and most customers would rather not have to pay unexpected VAT and duties to get their parcels.
Shipping to Amazon FBA or 3PL warehouses
We probably can't even count the times we got a question from clients about whether Amazon FBA can act as the IOR for their brands, since they are shipping directly to Amazon warehouses. But even though your goods are delivered to an Amazon warehouse, Amazon does not automatically act as the Importer of Record for your shipments. In most cases, Amazon requires you to define who the importer is and to provide the necessary customs information (including EORI). Otherwise, they might reject the shipment altogether.
The same logic applies if you send goods to a third-party logistics (3PL) provider in Europe. A 3PL warehouse stores and fulfills your inventory, but it does not automatically become the Importer of Record simply because the goods are delivered there, and so they might reject the shipment if there isn't a clearly defined legal entity responsible for the import.
IOR vs other roles in customs documentation
When you start reviewing EU import requirements, you will quickly encounter several different terms that appear close to each other in documents and contracts: Importer of Record, consignee, declarant, and customs representative. Because they often show up on the same commercial invoice or customs declaration, it is easy to assume they refer to the same role. But in reality, each one has a different legal and operational meaning.
So now let's look at how those roles differ, and why it's so easy to confuse them.
Consignee
This role appears on transport documents such as the bill of lading, airway bill, or commercial invoice and might sound similar to IOR, but the consignee is simply the party to whom the goods are physically delivered.
For example, the consignee may be:
your customer (in a D2C shipment),
an Amazon fulfilment centre,
a 3PL warehouse,
or a local distributor.
Being the consignee does not automatically make that party responsible for customs duties or compliance, even if you ship to rented warehouses or marketplaces or other businesses.
Declarant
The declarant is the entity that formally submits the customs declaration to EU authorities. In some cases, the declarant and the Importer of Record are the same entity—for example, if your EU company files its own customs declarations. In many cases, however, the declaration is submitted by a customs broker or representative acting on your behalf.
In that situation:
the broker is the declarant,
but the Importer of Record remains responsible for the information provided.
The key distinction is procedural versus legal responsibility. The declarant performs the act of filing the declaration. The Importer of Record carries the legal responsibility behind the data submitted.
Customs representative
A customs representative (often referred to as a customs broker) is a service provider that prepares and submits customs documentation on behalf of an importer. Basically, they manage the paperwork, communicate with customs systems, and ensure that declarations are technically submitted correctly.
However, the level of responsibility depends on the type of representation:
Direct representation
The representative submits the declaration in your name.
You remain fully responsible as the Importer of Record.
The representative does not share liability for the customs debt.
Indirect representation
The representative submits the declaration in their own name but on your behalf.
Both you and the representative share responsibility toward customs authorities.
The representative assumes joint liability for customs duties and import VAT.
This distinction is important because simply “hiring a broker” does not automatically transfer legal responsibility. The Importer of Record remains the key accountable party unless a specific legal structure changes that relationship.
Why these distinctions matter
At the early planning stage, these terms can sound purely technical. You might think that as long as a customs broker is handling the paperwork and a warehouse is ready to receive the goods, the details will sort themselves out. In practice, this is where many misunderstandings begin.
Once you start drafting contracts, choosing Incoterms, registering for VAT, or speaking with logistics providers, each of these roles carries different responsibilities—and different risks.
For example:
The consignee may physically receive the goods, but they are not automatically responsible for how those goods were declared at the border.
The declarant may submit the customs declaration, but that does not mean they carry full legal responsibility for its content.
The customs representative may manage communication with authorities, yet their liability depends on whether they operate under direct or indirect representation.
The Importer of Record, however, is the entity that stands behind the import transaction from a legal and financial perspective. If customs authorities identify inconsistencies, request additional documentation, or conduct a post-clearance audit, they will address the issue to the Importer of Record. This becomes especially important when multiple parties are involved in your EU expansion, as clarifying those roles at the beginning prevents disputes later.
Wrapping Things Up
If you are reading this and thinking, “This is more complex than I expected,” that is completely normal. Choosing the entity for your Importer of Record also means deciding who will be responsible for paying duties and VAT, who will be the first point of contact when issues arise, and sometimes even with which logistic partners or warehouses you can work . It can't be just anyone - it needs to be someone you can trust with your brand's reputation.
We hope that the article did bring a bit more clarity into the topic, though, and now you know how important IOR is and who can be the IOR in your case. And in case you need a bit more guidance or reassurance that you chose the right entity, we'll be happy to talk it through with you, just so you know you made one of the most important steps to entering the EU market correctly.
Sometimes one such conversation early on can prevent weeks of adjustments later.
