importer Archives - Excelsior Worldwide Logistics Corp.

Can the Freight Forwarder Be the Importer of Record? Here’s What You Need to Know

excelsior on June 27, 2025

Global trade continues to skyrocket. As of 2025, the global logistics market was valued at USD 11.23 trillion. It is anticipated to reach USD 23.14 trillion by 2034, with e-commerce and international supply chains driving significant demand for efficient transport solutions.

When companies expand into global markets, logistics often becomes a tough challenge when dealing with compliance. This is where the importer of record (IOR) and freight forwarder roles ensure that goods move smoothly across borders and comply with local regulations.

While both have distinct functions, one question often arises: whether a freight forwarder can act as an IOR. Hence, understanding their functions, constraints, and edges is essential to picking the most effective partner for handling your transport and compliance needs.

Freight Forwarders vs. IOR: Understanding Their Difference

When shipping internationally, knowing the roles of freight forwarders and IOR is paramount. While they often collaborate, their tasks and responsibilities differ significantly.

Freight Forwarder as the Logistics Coordinator

International freight forwarding companies serve as logistics mediators between shippers and transportation providers, managing the physical conditioning of goods from origin to destination. They do not hold the goods or bear legal responsibility but deliver vital coordination and support services.

Key responsibilities include:

Organizing transportation by air, sea, or land
Booking cargo areas
Consolidating shipments
Handling shipping documentation
Coordinating pickup and delivery schedules
Tracking visibility of shipments
Assisting in customs clearance

IOR as the Legal Accountable Party

IOR is the legally identified entity liable for ensuring all imported goods comply with local import laws and regulations. This role is necessary for regulated industries and destinations with intricate compliance requirements.

Their tasks include:

Paying import duties, taxes, and fees
Customs declaration
Upholding import compliance documentation
Ensuring goods meet local standards or certifications
Bearing legal risks, liability for compliance errors
Recordkeeping

Can a Freight Forwarder Also Act as the IOR?

While a freight forwarder can sometimes act as the IOR, this depends on several factors and the forwarder’s willingness to take on legal and compliance tasks. While possible, acting as the IOR is not the norm but a solution best suited for businesses needing market access.

Whether to take IOR’s role or not, forwarders are highly dependent on the following factors:

Destination Country Regulations. Some countries allow freight forwarders to operate as the IOR. Meanwhile, others require the IOR to be the only entity taking ownership of the goods.
Freight Forwarders’ Capabilities. Only select forwarders offering IOR services. These are typically extensive, global firms with the necessary infrastructure, compliance teams, and local presence in key markets.
Industry-Specific Demand. Freight forwarders are more likely to offer IOR services in industries with complex import requirements like IT, medical devices, or telecom, which are governed by distinct contracts and outside standard freight forwarding operations.
Separate Service Agreements. IOR services, when offered, are usually provided under a distinct agreement, not as part of standard forwarding services.

When to Appoint a Freight Forwarder or IOR?

Appointing a freight forwarder and IOR relies on the nature of shipments, industry, and compliance requirements. Here is a quick guide to help you decide:

Regulatory Complexity. Employ a professional IOR when importing to countries with strict rules to manage compliance and avoid penalties.
In–Country Presence. An IOR can be the legal importer if you lack a local entity.
Shipment Volume and Frequency. A freight forwarder with IOR services can streamline operations and reduce admin work for regular, high-volume shipments.
Industry Specific Needs. Select a provider who is familiar with your sector’s necessities.
Speed and Efficacy. A freight forwarder can optimize routes and manage documentation for faster clearance.
Risk and Liability. An IOR takes legal responsibility and compliance.

Final Thoughts

While international forwarding is critical in global logistics, its capacity to serve as IOR is conditional. The option to delegate the IOR function to them should be made carefully, weighing legal implications, industry standards, and the company’s operational efficiency. Partnering with a logistics provider like Excelsior Philippines is better to streamline operations and reduce non-compliance risk. We guarantee your goods are transported using suitable freight solutions aligned with efficiency goals and regulatory standards. We help businesses attain smooth operations by managing the logistics process end-to-end, ensuring speed, accuracy, and full compliance from origin to destination.

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How to Be a Successful Importer – Infographic

excelsior on February 28, 2020

Selling products that came from abroad can be a pretty rewarding business, especially if there is a growing local market that can buy your goods. Imported products tend to be available for a cheaper price, and usually in high quality. And with the rapid spread of globalization, new and commercial items from an international supplier could emerge, which gives importers instant access and offer it their own country maximizing their profits in the long run.

If you’re one of those aspiring entrepreneurs who are planning to start an importing business, then you should be aware of some tips that can help you thrive and succeed as the competition becomes tougher as the years go by.

Have a piece of in-depth knowledge about your products

While this might sound like a no-brainer, conducting research about the products that you wanted to import is critical for your success. Know more about the existing market and have an assessment to identify if there are people who will be willing to purchase your imported products. You also have to make sure that the products are allowed to enter the country.

In case you’re from the Philippines, below are some examples of items that are either prohibited or restricted for importation as mandated by the Philippine law according to the International Trade Administration:

Toy guns
Used motorcycle parts, except engine
Specific narcotics, or synthetic drugs (i.e., marijuana, opium, heroin, among others)
Gambling paraphernalia
Dynamite, ammunition, explosives
Laundry and industrial detergents containing hard surfactants

You can view the full list here.

Negotiate effectively with your supplier

Dealing with suppliers from another country can sometimes become a challenging task as the diversity of culture can hinder your chances of getting a favorable deal. Study more about the culture of the exporting country so that you can implement suitable strategies once you negotiate with your supplier. Have a thorough understanding of the terms before placing an order so that you avoid mistakes that often lead to additional expenses. Check if the calculations of all the costs that you have to pay are correct.

Analyze your insurance coverage

Make sure that you analyze the insurance aspect of your import transaction. Unexpected events might happen as your products are being transported, and this could help you identify the party responsible in case of a loss or damage.

Contact the customs authorities

There’s a good chance that you will have to comply with several permits as well as submit documents and forms before you can clear your imported products during the shipping process. This could be a very time-consuming stage for those who are relatively new in this kind of industry. Since time is a valuable resource that must never be allocated alone for shipping processes, it’s highly recommended to hire a licensed customs broker to prevent unnecessary delays on your shipment.

Maintain good relationships within your network

Every person or agency that you’re doing business with will always play an essential role in your success. From your supplier, freight forwarder, customs broker, carrier company and even the customs authority, you must treat them with utmost professionalism and respect. Maintaining social harmony in your business sphere will make your daily importing operations as smooth as possible.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

The Importance of Being an Accredited Importer and Exporter in the Philippines

excelsior on September 14, 2018

Over the last five years, the Philippines has become one of the most competitive economies being the 38th largest export economy worldwide and forecasted by HSBC as a potential 16th largest economy by the year 2050. Given the fact that the country’s economy itself has advanced, the implementation of trade policies is stricter and the standards, higher. Having that said, here is a detailed list and account of the importance of being an accredited importer and exporter in the Philippines:

Recognition

Businesses who aspire to be accredited are carefully assessed and evaluated by a neutral accrediting body based on numerous requirements and conditions, providing clients with a reliable and fair basis when choosing an import and export company and a guarantee of quality service. After getting accredited, chances are you will be a premier choice in the import and export industry.

Promotion and advertising

Getting accredited is an excellent marketing strategy because after passing the accreditation assessment, you will be awarded a certificate of accreditation that you can publish in your website to demonstrate your commitment to providing quality to your present and potential clients.

Keeping ahead of the competition

Not every import and export business volunteers to undergo the accreditation process because they lack knowledge of its importance and only a few passes the assessment done by the accreditation body. That is why getting accredited gives you an edge over your competitors.

Exemptions

As an accredited importer, you have the privilege of getting exempted from payment of import duties upon the observance of formalities and regulations, while an unaccredited business doesn’t.

Minimized expenses

If you have numerous shipments to be made, you can reduce your expenditures by directly processing your entries with the Bureau of Customs instead of paying third-party consignees to do the job.

The main objectives of accreditations in the Philippines are to prevent smuggling, combat tax fraud, and evasion, and to transform the Philippines into an exporting nation through cooperation between government and private entities.

But, as you can see in this article, it is just as beneficial to every business inside the country because it encourages each business to improve and excel in their chosen industries constantly.

Here at Excelsior Worldwide Freight Logistics, we have equipped people who are knowledgeable regarding import and export legalities and are willing to help you get accredited.

We also conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business.

To learn more about the importance of being an accredited importer in the Philippines, see this infographic on the advantages of being an accredited importer.

Sources:

Advantages of Being an Accredited Importer (Infographic)

excelsior on September 29, 2017

Responding to the economy’s endeavor of progress, a factor of its primary resource needs to comply and go with the flow of its demand. Through importation, Philippine economy continuously grows and expand. However, the government which is responsible for regulating and facilitating trade, implement strict policies on the importation process in order to prevent smuggling and to combat tax fraud and evasion.

Accreditation of importer is a necessity when facilitating a transaction with the Bureau of Customs (BOC) wherein ease of processing of documents and release of goods are involved. Importers need to be accredited with the BOC which is indispensable because once you are not, the agency will not recognize your papers. Otherwise, gaining accreditation from the Bureau equals to certainty that your shipment will be entered in any customs office at ease.

Importation is a Privilege given by the government. It is not a right.