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An EOR aka Exporter of Record is an important part of your trade business as they deal with rules and regulations to be followed to export your products. EOR is simply a person or entity which performs similar tasks as an IOR (Importer of Record) does. The only difference is that EOR is the entity that is responsible for taking care of laws and rules related to the shipment of products from the exporting country.
The EOR takes care of the paperwork needed for the clearance of exports. Moreover, the entity takes care of the scheduling of exports such as the exports are being shipped on time or not. The EOR is also responsible for forecasting any glitches in the shipment. If anything happens that doesn’t let the shipment process or it doesn’t reach the destination port, the EOR takes responsibility for it. It will also manage any customs and inquiries asked by the exportation country’s authority.
The basic activities done by an EOR are the same; however, the responsibilities may differ depending upon your business or export transaction. You may need different records and perform different paperwork for fulfilling the regulations relating to customs and duties. The products or goods that are being exported should be represented and described accurately. The shipment should be done according to the laws, but the requirements should also be taken care of and all the licenses related to exports must be acquired. The EOR is also accountable for paying all the taxes and customs duties when needed.
The services of an EOR always come in hand, when exporting goods from within the country. In most cases, the one who ships the products act as an EOR but the owner of the products can also be the EOR. If it’s not the case, a knowledgeable, experienced licensed third party should be given the task. As exporting involves very crucial steps, this role should be assigned to an expert. Because an EOR will export your products efficiently, and that will eventually make the process fluent and smooth.
As a business owner, you don’t have to worry, if any rules or laws are not followed at the time of exportation, the only person responsible would be the EOR. He will be the one to face any penalty or criminal liability. EOR will resolve any issues and abolish hindrances to make the process smooth and even. If your products don’t arrive at the destination timely, or the delivery isn’t made on time, EOR will also handle that and he would take the necessary steps to compensate.
If there is any forwarding agent involved in the process, the EOR will be in charge of providing complete and detailed information about the shipment. One of the reasons, you may need an EOR is that maybe you are shipping or exporting brand new products and are not aware of the requirements about the process or you simply don’t have a legal presence in the country you are exporting from. Or you may be not knowledgeable enough about the fair market value of your products. So to avoid such issues and effectively run your exporting business, you must know how EOR works so you can choose the best among them and make the most out of your business.