An Importer of Record(IOR) is an entity or individual who ensures that all the goods are appropriately documented and valued as required by the Customs and Border Protection (CBP). Furthermore, the IOR is also responsible for paying duties, tariffs, and other fees related to the imported shipment.
The IOR plays an integral part in the import-export landscape. The CBP created the role of IOR to secure imports from terroristic threats and guarantee the payment of duties on all imported goods.
What does the importer of record do?
The U.S. importer of record performs the following tasks:

IOR is authorized to assume responsibility for imported goods
The IOR is considered the consignee or importer when it comes to documentation/shipping paperwork
IOR ensures that goods are cleared in compliance with all legal requirements, laws and regulations of the place of import

The importer of record can be the owner, purchaser, consignee, exporter, commercial entity or customs broker

The IOR has temporary title to the imported items until the goods are accepted for allocation and delivery.
Simply put, IOR can import anything on behalf of others. They are also responsible for streamlining shipping services.

Who can be the importer of record?
The importer in the definition of record is usually the owner, purchaser or consignee who has title to the product imported into the destination country. A power of attorney usually authorizes customs clearance on behalf of the importer.
Owner and Purchaser: A person who has a financial interest in the imported goods or who imports the goods.

Exporter: A person recognized by customs and government authorities to export items from one country to another.

Consignee: The person who receives and takes possession of the goods. The consignee takes ownership of the goods after customs approval. Individuals or business entities can act as consignees in the process. If a business entity imports products for internal use, storage or distribution, it can be both the importer and the consignee.

Customs Broker: A broker or agent or any legal entity at the point of import may be more beneficial as an IOR because they can handle the paperwork.
Usually, the buyers themselves with their customs brokers tend towards the IOR. CBP introduced the concept of an IOR to provide importers with simple documentation and clearance in all cases where the actual importing entity is not the one that will process the documentation.

Think of it as another tool conceptualized by the U.S. government to make importing easier and more painless.

What is the difference between a customs broker and an importer of record?
Customs brokers have no authority to ensure that goods clear customs or arrive at the point of import. Their involvement is to stay abreast of the latest information on rules and regulations, and to manage the paperwork required for importation and the required licenses. Instead, the IOR must ensure that taxes and duties are settled after the item reaches the point of import.

Record importer vs consignee
Many organizations confuse consignee and importer of record. After the goods are cleared by customs, the consignee is responsible for the goods. 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 clear the goods and ensure that they remain in compliance with all the necessary regulations, laws and regulations of the country of destination. It is the IOR's responsibility to ensure that goods are valued correctly, that all import duties and taxes are paid, and that all correct documents and permits are submitted.
Interestingly, if the consignee has the necessary knowledge of the process and requirements, he can act as the importer of record.

Importer of record and exporter of record
An Exporter of Record (EOR) is basically the same as an IOR, but applies to exports rather than imports. EOR is responsible for obtaining and documenting export clearance. In addition, the EOR must ensure compliance with all US export regulations.

How to become a registered importer?
To become an importer of record, an importer of record application must be made by paying a fee to CBP. After the submitted documents are verified by US Customs, an IOR number will be issued to the applicant.

The required files are:
power of attorney statement
Applicant ID card
A copy of the constitutional documents of the company

What is an importer number?
The importer number is a unique identification number assigned by Customs to the importer of record who wants to import goods into the United States. CBP uses this number at many stages in the processing of imported goods as an identifier for the goods you are entering into the United States.
What is the standard format for an importer number?
The standard format of the importer ID is different for U.S. importers and foreign importers, and it looks different. This is basically to differentiate US importers from foreign importers. The number can be of the following types:

US importer: 12-123456789
Foreign importers: 123456-12345

How do I find my importer record number?
You can find your IOR number in one of the following ways:-

Business Tax ID Number/EIN: The most common method is to use your tax ID number, also known as your EIN. Your EIN can be easily converted to an Importer Number by adding two zeros to the end of your Tax ID number.

Social Security Number (SNN): If your business does not have a tax ID number or EIN, you will have to use the SSN of the business founder. Typically, this is done when the company is a sole proprietorship. In this case, customs authorities allow the founder's SSN to replace the traditional importer number format.

CBP Form 5106: To obtain your unique IOR number, you will need to file CBP Form 5106 with Customs. This form can be submitted when:-

If you do not have this form on file
If your number has expired
If you need an additional importer number
Your number will remain with customs for up to one year after you last used it to import goods into the United States. After this period, your importer number will be considered invalid and you will need to refill CBP Form 5106.