What is the difference between consignee and importer

Therefore, determining all the facts surrounding an importation is critical to determining the proper and best way to proceed. In this case, there are multiple parties involved. It appears that any one of them could legally act as 'importer of record', but most often this is a matter dealt with in the sales contract, since the 'importer of record' is primarily liable for duties, taxes and related fees assessed at the time of entry or at a later time, as well as compliance with many additional requirements including record-keeping and the like.

Therefore, the parties should decide who is to act as importer of record. Similarly, the consignee will depend on the terms of sale such as when and where is title to pass, etc. If the ultimate consignee is known prior to shipment, as it appears to be here, then D is a likely candidate for this 'honor'.

Company D's compliance responsibilities are, of course, directly related to whether they act as importer of record or are simply the 'ultimate consignee'. If they are importer of record, they must of course use reasonable care in the classification, valuation, declaration and record-keeping of the imported goods, among other things. It should be noted that Customs has maintained that a consignee can be held liable for errors made by a broker who acts as importer of record, if the consignee is the party who causes the importation to take place.

Finally, a few additional facts are critical in determining the proper declared value for Customs purposes. One such factor is what the relationship is between the parties, are they 'related' to each other as defined in 19 CFR If they are related companies, then Customs may not accept a transaction value between the related parties.

Rather, they may look beyond that transaction to one of the later sales for duty purposes, reasoning that the first sale was affected by the relationship and in fact may only have been interposed in the sale chain to reflect a reduced value for duty assessment purposes.

As an example, in the case that all the parties in your scenario are related, Customs might argue that none of the sales are acceptable and, lacking any sales of these goods to unrelated parties for import, that a 'deductive value' is required, based on the first sale to an unrelated party in the U.

On the other hand, a far more simple case would be if B acted as importer of record and none of the parties were related, then the price paid by B to A would likely be an acceptable transaction value to be declared for entry purposes.

As you can see from the above discussion, deciding the Customs impact of the purchase contract is an important first step before finalizing any agreement, if possible.

Also, seeking a binding ruling, or advice of counsel in complex purchase transactions can help avoid unforeseen consequences and demonstrates an exercise of 'reasonable care' by the importing party.

Owner and Purchaser : Person with a financial interest in the goods being imported or someone who imports the consignment. Exporter: Person realized by the customs and government authorities to export articles from one country to another. Consignee: The person who receives and owns the shipment. The consignee takes ownership of the shipment after the customs approves it. An individual or a business entity can act as the consignee in the process. A business entity can be both the importer and the consignee if it imports the products for internal use, storage, or distribution.

Customs Broker: A broker or an agent or any legal entity at the place of import can be more beneficial as an IOR because they can take care of the paperwork.

A customs broker is not entitled to ensure taxes and duties clearance or arrival of the shipment at the place of import. Their involvement is to stay updated with the rules and regulations and manage the paperwork and the required licenses necessary for the import. Whereas an IOR has to ensure that the taxes and duty payments are cleared post the arrival of articles at the place of import.

Many organizations get confused between Consignee and Importer of Record. The consignee is responsible for the goods once they have been cleared through customs.

They are also responsible for paying import duties and taxes. On the other hand, one of the main responsibilities of the Importer of Record is to get the goods cleared from customs and ensure that they remain compliant with all the necessary regulations, laws, and statutes of the destination country. It is the responsibility of the IOR to ensure that the shipment is correctly valued, all the import duties and taxes are paid, and all the correct documents and permits are filed.

Interestingly, a consignee can act as an Importer of Record if he has the necessary knowledge of the process and requirements. The EOR is responsible for obtaining and documenting export clearance. To become an importer of Record, one has to apply for an importer of record number by paying a certain fee to the CBP.

Importer number is a custom assigned unique identification number to an importer of record who wants to import goods to the USA. This number is used in many stages of processing the importing goods as identifiers to your entries of the goods into the States by CBP.

The US importers and foreign importers will have a different standard format of the importer number and will look different. This is basically to differentiate between the US importers and the foreign importers.

Minimized GST rates on Corduroy fabrics. Minimized GST rates on Idols of wood, stone and metals. Excise and Customs - Click here to read complete notification under Budget How to settle dispute in Exports and Imports?

Pre shipment bank finance to suppliers for exports through other agencies. How does a Running bond work? How does Bill of Lading work in DP payment terms?

Is DP terms of payment safe in export business? Zero percent GST on purchase of Sindur. Zero rate of GST on sale of Kumkum. No GST on purchase or sale of Kajal. Nil rate of GST on sale of Bindi.

Zero percentage GST on purchase of Alta. Revised GST rate on Waffles and wafers coated with chocolate. Revised GST rate on Pasta, spaghetti, macaroni, noodles etc. Revised GST rate on Extracts, essences and concentrates of coffee.