You've closed an Indian customer. The equipment is ready to ship. Then procurement asks: "Who is your Importer of Record?" — and the deal stalls, because your company has no Indian entity, no IEC, and no way to legally bring goods into the country.
What an IOR Actually Is
The Importer of Record is the legal entity named on the Bill of Entry — responsible for import licences, duty payment, regulatory compliance and record-keeping. In India this entity must hold an Importer Exporter Code (IEC), a registered AD Code, and GST registration. A foreign company has none of these.
Who Uses IOR Services
- Foreign brands shipping stock to Indian distributors before incorporating
- IT and data-centre companies deploying hardware into Indian facilities
- Project companies importing machinery for EPC contracts
- Hardware/SaaS firms shipping devices to enterprise clients
- Exhibitors bringing equipment for trade shows
How the Structure Works
A service provider like Bruce Logistics becomes the named importer: our IEC, our duty payment, our compliance liability. Commercial ownership of the goods stays with you and your buyer per your sales contract — we carry the regulatory role, not title. The arrangement is documented in an IOR service agreement covering liability, fees and fund flow.
The Part Most Providers Get Wrong: Money
India's exchange-control rules (FEMA) require import payments to be matched with Bills of Entry and closed in the bank's IDPMS system. A compliant IOR structure routes remittances correctly through an AD bank and closes IDPMS entries — sloppy structures create bank flags that surface months later. Ask any prospective IOR provider how they handle IDPMS closure; the answer tells you everything.
Costs
Expect a percentage of shipment value with a minimum fee, varying with product category and compliance complexity. Regulated goods (electronics needing BIS/WPC, cosmetics needing CDSCO) add licensing costs — sometimes carried under the IOR's registrations, sometimes requiring brand-specific approvals.
IOR vs. Setting Up Your Own Entity
Incorporating in India takes months and creates permanent tax and audit obligations. IOR gets you to market in weeks and converts fixed cost to variable. The typical path: enter via IOR, prove the market, incorporate when volume justifies it.
Evaluating India market entry? See our IOR service or request a feasibility check.