Import Foundations

What it means to be the Importer of Record in Canada

Written by Cole Marketing | Oct 6, 2025 1:59:59 PM

Customs authorities need a clearly identified party who can be held accountable for every shipment. The Importer of Record fulfills this role, ensuring that there is a single responsible entity for accurate declarations and compliance with Canadian import rules.

Every shipment entering Canada must have an Importer of Record (IOR). 

This designation represents the party legally responsible for ensuring goods meet all Canadian customs requirements.

For many businesses new to importing, the scope of this responsibility isn’t always clear.

Understanding who can serve as the IOR, what obligations come with the role, and what risks are associated with it is essential for smooth and compliant importing.

In this article, we outline the key responsibilities, liabilities, and best practices that every importer should know.

What is an Importer of Record?

According to the Canada Border Services Agency (CBSA), the Importer of Record (IOR) is the person identified as the importer on the customs declaration when goods are accounted for.” 

In other words, it is the party whose name and number appear on CBSA’s accounting documents.

The IOR is not the only role in the process.

The CBSA also defines an importer as the person who brings goods, or causes goods to be brought, into Canada, and an owner as the person who owns the goods at the time they are released by the CBSA. 

Together, the importer, the owner, and the Importer of Record are jointly and severally liable for duties and taxes, including any reassessments, as well as for maintaining accurate declarations and records.

However, in the case of shipment reviews or audits, the CBSA generally looks to the Importer of Record.

Who can act as an Importer of Record in Canada?

Not every party involved in moving goods can serve as the Importer of Record.

Under CBSA policy, the IOR is the party identified as the importer on the customs declaration.

For commercial imports into Canada, the Importer of Record generally falls into one of three categories:

Canadian businesses (resident importers)

The Importer of Record is most often a Canadian-resident company with a Business Number and import/export account registered to transact with CBSA.

This company is responsible for declaring goods, paying duties and taxes, and ensuring compliance with customs requirements.

Non-resident importers (NRIs)

An NRI is a business located outside Canada that registers to act as the Importer of Record for its shipments into Canada.

To qualify, the company must obtain a Business Number and register for an import/export account, and then use these to transact with the CBSA through the CARM Client Portal (CCP).

Once registered, an NRI carries the same obligations as a Canadian importer.

Authorized agents

In some cases, a customs broker or another authorized agent may be designated as the Importer of Record, but only when acting under the direction of the importer or owner of the goods.

When an agent is listed as the IOR, it assumes the same legal responsibilities as any importer, including duty liability and compliance with CBSA requirements.

While carriers and freight forwarders support the logistics process, they cannot act as the Importer of Record in their transport role. 

They may only do so if they are licensed and specifically authorized to account for goods on behalf of the importer. 

IOR responsibilities and obligations

An IOR's key responsibilities include:

  • Classifying goods correctly under the Harmonized System
  • Declaring the proper value for duty and including required adjustments
  • Identifying the country of origin and applying trade agreements where eligible
  • Securing any permits or licenses required for controlled goods
  • Paying all applicable customs duties and GST/HST
  • Filing accurate declarations and maintaining complete records
  • Retaining records for a period of six years
  • Being prepared for CBSA verifications or audits

These obligations remain with the Importer of Record even if a customs broker files declarations on their behalf.

They also apply equally to Canadian resident importers and non-resident importers.

Common IOR risks

The most common risks IORs could face include:

  • Financial penalties: Under the Administrative Monetary Penalty System (AMPS), CBSA can issue penalties for errors such as misclassification, undervaluation, incomplete invoices, or missing permits.
  • Extra costs: If duties or taxes are underpaid, the Importer of Record is jointly and severally liable for reassessments and interest.
  • Delays or holds at the border: Non-compliance or incomplete documentation can trigger inspections or shipment holds.
  • Reputation issues: A history of compliance issues can affect credibility with CBSA.

Best practices for staying compliant

To manage responsibilities effectively and reduce risks, importers of record are advised to:

  • Work with a licensed customs broker to handle classifications, filings, and duty calculations accurately
  • Establish internal checks for import documentation to catch errors early
  • Stay informed about tariff updates, trade agreements, and regulatory changes that affect their goods
  • Train staff involved in importing so that responsibilities are understood across the business
  • Maintain records in both digital and hard copy formats for six years and make sure they're always audit-ready

How Cole International can help

At Cole International, we provide trade consulting and customs brokerage services to help Canadian businesses understand their IOR responsibilities and comply with CBSA requirements.

Our team works with importers every day to:

  • Determine the correct HS classification for their goods
  • Declare the proper value for duty and apply trade agreements where eligible
  • Prepare and file customs entries accurately and on time
  • Secure permits and licences for regulated shipments
  • Maintain audit-ready records and respond to CBSA reviews

We don’t believe in guesswork. We get it right the first time.

If you act as the Importer of Record in Canada, reach out to one of our trade professionals to make sure your responsibilities are met and that your imports move through customs without delays.