Can a freight forwarder be the exporter of record? Often, the Shipper and Exporter are the same company however, where an end-user wishes to return warranty goods for example, or the Shipper does not want to deal with the export procedure, they will employ a third-party company such as Mouse & Bear Solutions to act as the Exporter. The Exporter of Record is the business that is responsible for the correct export process of the goods out of the originating country. The Shipper is the company who has sold the goods. What is the difference between shipper and exporter?
EXPORTER DEFINITION HOW TO
Fair Market Value: The owner of the goods does not know how to evaluate the value of the goods, since they may not be brand new.The supplier or manufacturer are shipping brand new goods and are unaware of the export requirements, or do not have a legal entity in the country the goods are being exported from.Reasons an Exporter of Record for goods may be required: In that case, it might be preferable to leave this to a third party to avoid mistakes occuring, and the potential financial or legal consequences. One may think that the owner of the goods would want to assume the responsibility for being the Exporter of Record, since there are rarely taxes and duties to pay for the exit of goods however, the owner may not have confidence in their own knowledge of the export processes. An EOR must also forward detailed infromation about a shipment to a forwarding agent, if one is involved in the transaction.Furthermore, if delivery is not made, or the shipment isn't delivered on time, the Exporter of Record bears the responsibility for any financial consequences to the recipient. If the goods don't arrive at their destination, it's the responsibility of the Exporter of Record.If the EOR is even aware of negligence, or knows that a violation has occurred and does not take steps to resolve it or report it, they face same level of penalty. If a breach of compliance procedures or regulations does occur, the Exporter of Record could face severe financial penalties, or criminal liability, or both.This would include obtaining all the necessary documentation for export clearance such as licenses and permits, and ensuring a clear and accurate description and value of the goods that are being exported.
With similar responsibilities to the Importer of Record, the Exporter of Record is responsible for adhering to the customs processes required in that country for the export of those goods.
What are an Exporter of Record's responsibilities? If the EOR is not the owner then they could be a licensed and knowledgeable third-party export service provider. Equally, the exporter might be a supplier exporting brand new goods to their client. In many cases, the Exporter or Record is also the shipper, and may also be the owner of the goods, too. The exporter may be a customer returning their goods back to the manufacturer or supplier (for example, many of our clients are returning out-of-date technology equipment to be replaced or upgraded). Who can be the Exporter of Record?Īn Exporter of Record is the legal exporting entity for goods exiting a country. This includes the requirement for an Exporter of Record to be listed on all shipments. To recap on the main objectives of international trade compliance: goods entering (or leaving) a country must be accurately described and valued shipments must conform to all local import / export requirements, laws and regulations including import and export licenses, restrictions and payment of taxes and duties where applicable. The EOR carries out a valuable service, not only helping businesses to meet trade compliance rules and regulations when moving goods around the world, but also ensuring accountability for global shipments.
International trade compliance has many elements, but one role or service that we've written less about until now is that of the Exporter of Record (EOR). You can also enquire about Mouse & Bear's Exporter of Record Services. Read on to understand the definition of an Exporter of Record, who can act as the EOR, and their responsibities. Released On 9th Dec 2019 What is an Exporter of Record & What is an EOR's Role?