How to Become an Importer of Record (IOR) in the US: The 2026 Guide
The Importer of Record is the entity that CBP holds legally responsible for a US import — for proper classification, valuation, duty payment, and compliance with every regulation. If you want to import commercially into the US, you (or your business) must become an IOR. The setup itself is relatively simple. The ongoing liability is the more important consideration. This guide walks you through the practical setup and the duties you take on.
What an Importer of Record is
The IOR is named on every CBP entry (Form 7501). The IOR:
- Files the entry (directly or via a customs broker)
- Pays the duty, taxes, and fees
- Maintains the records for 5 years
- Is legally liable for accuracy of classification, value, and origin declarations
- Receives CBP communications (notices, audits, penalties)
- Bears responsibility for any AD/CVD, marking penalties, or other compliance violations
Critically: you remain liable even when your customs broker files for you. The broker is your agent. CBP comes after the IOR.
Who can be an IOR
| Entity | Can be IOR? | Notes |
|---|---|---|
| US individual with SSN | Yes | Only for personal imports or very small businesses |
| US LLC or corporation | Yes | Standard structure for commercial |
| US partnership | Yes | Less common |
| Foreign entity | Yes | Requires US bond and US agent (more complex) |
| Sole proprietor with EIN | Yes | Simpler than LLC but no liability separation |
The 6-step setup
Step 1 — Form a legal entity (recommended)
You can import as an individual using your SSN, but for almost any commercial operation, set up an LLC or corporation first. Reasons:
- Separates personal and business liability (huge given Trump-era duty exposure)
- Cleaner tax treatment
- Suppliers and customers expect business-entity counterparty
- Required for many ancillary services (factoring, freight credit)
Costs: $50-$500 LLC formation depending on state. Delaware, Wyoming, or your home state are common choices.
Step 2 — Get an EIN from the IRS
Apply at irs.gov/ein. Free, instant for US-based entities. Foreign entities can apply via Form SS-4 (longer process).
Your EIN becomes the primary identifier CBP uses for your IOR account.
Step 3 — Open a US business bank account
You'll need:
- Account to pay your customs broker (who pays CBP on your behalf)
- Account to receive any duty refunds or drawback recoveries
- Banking relationship for letter of credit if buying internationally
Step 4 — Choose a customs broker
Required unless you're self-clearing. Most importers use a broker. See our customs broker guide for selection criteria.
The broker will:
- Help you register in CBP's ACE system
- Set up your IOR number
- Manage your bond
- File entries on your behalf
Step 5 — Obtain a customs bond
You need a bond before any commercial entry above $2,500. Options:
- Single-entry bond — for one shipment
- Continuous bond — for recurring shipments (12-month coverage)
Continuous bond minimum is $50,000 coverage, ~$400-$650/year premium. See our customs bond guide.
Step 6 — Power of Attorney to your broker
Sign a Customs POA authorizing your broker to represent you to CBP. Without this, the broker cannot file entries in your name.
POA includes:
- Your legal entity name and address
- EIN and IOR number
- Authorized signer name
- Broker's name and license number
- Scope of authority
Optional but recommended steps
Register with ACE Secure Data Portal
Even if your broker files, having your own ACE login gives you visibility into your filings, deposit balances, and CBP communications. Free at cbp.gov.
Set up a duty deposit account
CBP can hold deposits to pay your duties directly (Periodic Monthly Statement). Useful for high-volume importers wanting cash management visibility.
Consider C-TPAT (CBP Trade Partnership Against Terrorism)
Trusted importer program. Benefits include faster customs clearance and reduced exam rates. Takes 6-12 months to qualify; worthwhile for high-volume operations.
Get an IRS Form W-9 ready
For any vendor (broker, forwarder, freight carrier) that pays you (e.g., drawback refunds), they may request W-9.
Your legal responsibilities as IOR
- Exercise reasonable care. CBP's statutory standard. Doesn't require perfection but does require diligent compliance effort.
- Accurate HTS classification. Even if your broker assigns it.
- Accurate valuation. Including assists, royalties, packing.
- Correct country of origin declaration.
- Compliance with Other Government Agency requirements (FDA, FCC, CPSC, USDA, etc.).
- Record retention for 5 years.
- Response to CBP audits and inquiries within stated deadlines.
What can go wrong
| Violation | Penalty |
|---|---|
| Negligence (failure of reasonable care) | Up to 2× revenue loss |
| Gross negligence | Up to 4× revenue loss |
| Fraud | Up to 8× revenue loss + criminal referral |
| ISF violation | $5,000 per shipment (see our ISF guide) |
| Marking violation | 10% marking duty |
| Recordkeeping violation | $100,000 or 75% of entry value |
These add up fast for a small importer with high-tariff exposure under Trump-era rules.
Foreign Importer of Record
If you're a foreign entity, you can still be IOR, but you need:
- A US-based registered agent
- A US customs bond (often requires higher coverage)
- A US bank account or arrangement to pay CBP
- Authority to be served with legal process in the US
Many foreign companies opt instead to sell DDP through a US-based importer (like their US distributor or a customs brokerage's importer-of-record service).
Total cost to become an IOR
| Item | Cost |
|---|---|
| LLC formation | $50-$500 |
| EIN | Free |
| Customs broker fee (per entry) | $90-$250 |
| Customs bond (continuous, basic $50K) | $400-$650/year |
| ACE registration | Free |
| POA preparation | $0-$50 |
| Total setup | ~$500-$1,500 |
Frequently asked questions
What is an Importer of Record?
The Importer of Record (IOR) is the entity legally responsible to CBP for ensuring goods are properly declared, classified, valued, and duties are paid. The IOR is liable for compliance, even when using a customs broker.
Do I need an EIN to be an IOR?
You can be IOR using your Social Security Number, but for any meaningful business operation, an EIN-based IOR via your LLC or corporation is strongly recommended for liability separation.
Can I be IOR for someone else's goods?
Yes, but you take on all the IOR liability. This is sometimes done by US distributors for foreign suppliers. Has significant legal and tax implications.
Does my customs broker become liable if they file wrong?
Their E&O insurance may cover their share, but as IOR you remain legally responsible. Recovery from the broker depends on contract and insurance.
How long does setup take?
For a US-based individual or LLC: 1-3 weeks (LLC formation + EIN + bond underwriting).
What if I never get audited?
Many importers never face an audit. But IOR liability persists for 5 years after each entry. Compliance is insurance against the audit you didn't expect.