Read more about what a 3rd-party importer is, when it is used, and how it is managed in shipping and customs processes.
What is a 3rd-party importer?
A third-party importer is a company or organisation that acts as the legal importer of goods in a country, without necessarily being the physical recipient of the shipment.
In international trade, this means quite specifically that the responsibility for customs clearance, duties, and import documentation lies with a third party, even though the goods are sent to another recipient.
A 3rd-party importer is also often called:
- Importer of Record (IOR)
- Third-party importer (of Record)
- External importer
The importer is typically responsible for, for example, customs declarations, payment of customs duties and taxes, compliance with local import regulations, and the declaration of relevant identification numbers such as EORI, VAT, or national registration numbers.
Read more about VAT and imports here.
When do you use a third-party importer?
A 3rd-party importer is typically used in situations where the company receiving the goods is not the one that should handle the import or customs clearance.
There are many, and complex, scenarios where it makes sense to use a 3rd-party importer. Let us look at a couple of examples:
Example 1: When a company has a local branch in the import country
A company can send goods to a customer in a country, but let a local branch or partner handle the import.
This could, for example, be a Swedish wholesaler sending goods to a retailer in Norway. The goods are delivered directly to the retailer, but the wholesaler’s Norwegian branch acts as the importer and handles customs and duties.
Example 2: For distribution via a warehouse or logistics partner
International companies often use a logistics partner or a warehouse in a specific country to handle the import and onward distribution of goods. This can, for example, be an external warehouse or a 3PL (third-party logistics provider), which handles storage, handling, and distribution on behalf of the company.
This could, for example, be a company in Denmark sending goods to a warehouse in the United States, where a logistics partner or 3PL handles receipt and distribution. In some cases, this partner can also act as a third-party importer and handle customs clearance before the goods are distributed onwards in Europe.
Example 3: For sales through marketplaces
In some cases, a marketplace platform, for example Etsy or Amazon, or a third-party operator can act as the importer.
This could, for example, be an online marketplace acting as the importer for goods sent to customers in a specific country, if the platform handles customs clearance.
Benefits of a 3rd-party importer
There are many other examples of when it is an advantage to use a 3rd-party importer.
But it is worth knowing that the use of a 3rd-party importer is often connected with Incoterms, which describe the allocation of responsibilities between buyer and seller in international trade.
With, for example, DDP (Delivered Duty Paid), the seller can choose a third party to handle import and customs in the recipient country.
This makes it possible to centralise import responsibility in one place, optimise customs processes, and reduce administrative costs.
The typical benefits of using a third-party importer in international supply chains are also:
- Centralisation of customs responsibility
- Better control over the import process
- Opportunity to consolidate imports under one registered company
- Reduced administrative burden for the recipient
This solution is often used in B2B trade, international distribution, and more complex supply chains.
How a 3rd-party importer is handled in Shipmondo
When you create international shipments, several parties can be involved in the process, for example sender, recipient, freight payer, and importer.
In Shipmondo, you can specify a third-party importer as a separate party in the shipment. This makes it possible to separate the recipient and importer, specify who is responsible for customs clearance, and add relevant identification numbers.
This is especially relevant for shipments to countries outside the EU, where customs clearance is required.
When you create a shipment in Shipmondo, the importer can be entered directly in the booking flow, if the carrier or destination requires it.
This way, you can make sure that customs authorities and carriers receive the correct information, so your shipment can be processed without delays.
Read more about how to complete relevant customs information when creating shipments to countries outside the EU right here.