Tariffs are putting pressure on global supply chains, and businesses are feeling it. Whether you’re a manufacturer, perhaps in the medical devise industry, distributor, or CPG importer, the rising cost of importing goods is cutting into margins and making growth harder to plan for. That’s why more companies are exploring tariff mitigation strategies to stay competitive and protect their bottom line.

One effective approach? Partnering with an Importer of Record (IOR) provider. Not only can IOR services help you offset tariffs by opening up access to new international markets, they can simplify the compliance process—especially when your business lacks a legal presence in the country you’re shipping to.

In the current unpredictable trade environment, finding flexible, cost-effective ways to expand globally is essential. Let’s take a closer look at what an Importer of Record is and how this service can play a key role in your tariff mitigation strategy.

What is an Importer of Record?

An Importer of Record (IOR) is the legal entity responsible for ensuring that imported goods comply with local laws, including filing documentation and paying duties and taxes. IOR services simplify global trade, enable tariff mitigation, and help businesses import into countries where they lack a local presence.

Why Use an Importer of Record?

So, what exactly are Importer of Record services, and why are more businesses, including importers in the USA, turning to them as part of their broader tariff mitigation strategies?

Simply put, when a company lacks a legal entity in a target country, or their existing partners are unable or unwilling to take on the responsibilities of an Importer of Record, a third-party IOR provider steps in. They serve as the legal importer, taking on full accountability for compliance, documentation, and customs clearance.

This is different from a consignee, who may only be responsible for receiving goods. Understanding the importer of record vs consignee distinction is important: only the IOR ensures that goods are imported legally and in accordance with all local regulations.

Importer of Record Responsibilities Include:

  • Ensuring Compliance: Navigating the complex, country-specific import laws and avoiding regulatory pitfalls.
  • Handling Paperwork: Managing permits, licenses, and import declarations to keep shipments on track.
  • Customs Clearance: Coordinating directly with customs officials to prevent delays or denials.
  • Tax and Duty Management: Accurately calculating, reporting, and paying import duties and tariffs.
  • Local Representation: Acting as your official legal contact for all import matters in the destination country.

For companies seeking reliable tariff mitigation strategies for importers, IOR services are a powerful tool to support international growth.

Firstly, IOR services streamline entry into new markets. Establishing a legal entity abroad can be time-consuming and costly, especially for small businesses. With an IOR, you can test new markets without the upfront investment. This flexibility is vital when responding to sudden tariff increases in current markets or when exploring new tariff offset opportunities.

Secondly, IOR providers ensure regulatory compliance. Missteps like incorrect documentation or misunderstanding local customs laws can result in penalties and delayed shipments, adding financial strain on top of existing tariffs. For industries like manufacturing, where timing and supply chain continuity are critical, having the right IOR partner is essential. That’s why tariff mitigation strategies for manufacturing companies often include IOR services as a core element.

Thirdly, a well-versed IOR can help identify tariff mitigation strategies by leveraging trade agreements, duty drawbacks, or tariff reclassifications. Even though their primary role is compliance and clearance, their deep knowledge of the regulatory landscape in target markets is a valuable strategic asset.

You likely need IOR services if any of the following apply to your global expansion strategy:

  • You don’t have a legal entity or presence in the destination country. This is the most common reason businesses use an IOR.
  • Your local entity isn’t authorized to import or manage customs responsibilities.
  • Your customer won’t accept the liability of acting as the IOR, common in international B2B sales.
  • You’re unfamiliar with the local import process, especially in high-complexity regions or when launching into a new country for the first time.

Global trade isn’t getting any simpler, and with tariffs constantly shifting, businesses need flexible, reliable ways to expand into new markets without getting bogged down by red tape. That’s where Importer of Record services come in.

By taking care of import compliance, documentation, and customs clearance, IOR providers make it easier to grow internationally without setting up a local entity. Even more importantly, they can help you offset tariffs and support broader tariff mitigation strategies, whether you’re a small business testing new markets or a larger company protecting existing supply chains.

When you leave the logistics and legal responsibilities to an experienced IOR, your team can stay focused on what matters most: scaling your business and reaching new customers around the world, with fewer roadblocks along the way.

Are you interested in discussing how using an importer of record can help your company mitigate the higher cost of tariffs and importing to the US? Contact sales@jaguarfreight.com to learn more.