Not sure who's legally responsible when your goods cross the Canadian border? Here's what every importer needs to know about the importer of record role under CBSA.
If you're importing goods into Canada — whether from China, Vietnam, or anywhere else — there's a question you need to be able to answer clearly: who is the importer of record? It sounds like a technicality. It isn't. The importer of record in Canada is the party legally responsible for every aspect of that shipment: the duty, the taxes, the compliance, and the consequences if anything goes wrong. And yet, a surprising number of Canadian business owners either don't know who their importer of record is, or assume someone else is handling it.
This guide explains exactly what the importer of record role means under Canadian law, who can hold it, what obligations it carries, and how to protect your business — whether you're importing for the first time or you've been doing it for years.
The importer of record (IOR) is the person or business entity that takes legal responsibility for a shipment entering Canada. The Canada Border Services Agency (CBSA) defines the IOR as the party who is accountable for ensuring that imported goods comply with all applicable Canadian laws, regulations, and requirements — and who is responsible for paying all applicable duties and taxes.
This means the IOR is on the hook for:
The IOR is not simply whoever signs the import paperwork — it is whoever is legally identified as the accountable party at the time of entry. If there's a dispute, a reassessment, or a compliance failure discovered years later, CBSA looks to the importer of record for resolution.
In Canada, the importer of record must be a person or entity with a legal presence in the country — which typically means a Canadian resident, a Canadian registered business, or a non-resident importer (NRI) who has registered with the CBSA using a Business Number (BN).
Here's how it typically plays out:
You (the Canadian buyer): The most common scenario. If you're a Canadian business that purchases goods from a Chinese manufacturer and arranges for them to be shipped into Canada, you are almost certainly the importer of record — whether or not you've thought of yourself that way. The moment your Business Number appears on the import entry, you are legally responsible.
Your customs broker: A licensed customs broker can prepare and file the entry on your behalf, but acting as agent does not make them the IOR. The broker acts in your name. The liability stays with you unless you and the broker have a specific arrangement where the broker agrees to be named as the IOR — which is rare and comes with its own complications.
Your freight forwarder: Same situation as above. Your forwarder moves the goods; they do not automatically absorb your legal obligations as importer unless there is an explicit agreement to that effect.
Your Chinese supplier (DDP terms): Under Delivered Duty Paid (DDP) Incoterms, the supplier is responsible for customs clearance and duty payment. However, DDP arrangements in Canada require the foreign supplier to either be a registered non-resident importer or to appoint a Canadian agent as their IOR. If your DDP arrangement isn't structured properly, CBSA may still look to you — the Canadian buyer — when questions arise.
Being the IOR in Canada is not a passive role. The CBSA's framework under the Customs Act places several active obligations on you.
You are responsible for declaring your goods accurately — the correct tariff classification (HS code), accurate country of origin, and a complete and truthful description of what you're importing. Misclassification — even unintentional — can result in penalties, interest charges, and reassessments going back years. CBSA conducts random verification and targeted post-entry audits, and the consequences of inaccurate declarations fall squarely on the IOR.
Using the correct HS codes for your products is one of the most important steps you can take. A wrong code might mean you've been underpaying duty for years — or overpaying. Either way, it creates exposure.
The duty you pay is calculated on the customs value of your goods. CBSA uses the Customs Valuation Agreement framework, which means the declared value must reflect the actual transaction value — what you paid or agreed to pay for the goods. Undervaluation is a common compliance failure among Canadian importers, often because they don't understand how to handle related-party transactions, royalties, or assists.
Understanding your import duty obligations before you place an order is essential — not an afterthought.
The IOR is responsible for ensuring that products comply with all applicable Canadian regulations before they're sold. This includes Health Canada requirements for consumer products, ISED certification for electronic devices, Transport Canada requirements for vehicles and parts, the Canada Consumer Product Safety Act (CCPSA), and more. CBSA can detain or seize goods that don't comply, and the IOR can face penalties even if the supplier assured them the product was compliant.
Under the Customs Act, the IOR must retain all records related to an importation for six years. This includes purchase orders, invoices, packing lists, bills of lading, payment records, and any correspondence related to the goods. CBSA has the right to audit these records, and failing to produce them can result in penalties and adverse duty reassessments.
Since 2025, all importers of record are required to register in the CARM (CBSA Assessment and Revenue Management) portal. CARM is the new system through which importers manage their import accounts, post security, and receive duty statements directly. If you're the IOR and you haven't registered in CARM, you are out of compliance — and your ability to import goods can be disrupted.
The consequences of IOR confusion or non-compliance range from inconvenient to financially devastating.
Duty reassessments: If CBSA determines you've underpaid duties — through misclassification, undervaluation, or failure to declare assists — they will issue a re-determination. This can go back four years (or longer in cases of misrepresentation). The amount owed includes the duty shortfall plus interest, which accrues daily.
Administrative monetary penalties (AMPs): CBSA can issue penalties for a wide range of compliance failures — inaccurate declarations, missing records, failure to report goods. Penalties can range from a few hundred dollars to tens of thousands, depending on the violation and your compliance history.
Seizure of goods: Non-compliant goods can be detained at the border pending resolution. If you're importing time-sensitive inventory for a product launch, this can be devastating.
Liability for third-party errors: If you relied on a freight forwarder or customs broker to prepare your entry and they made errors, you are still the IOR. The agent acted on your behalf. Your recourse is against them — but CBSA's recourse is against you.
In certain situations, you may want to explore having a third-party IOR service handle the import — particularly for one-off or complex shipments where you don't want to establish your own import account. Third-party IOR providers exist in Canada, though they typically charge a fee and impose strict conditions on the goods they'll handle.
More common among smaller Canadian importers is using a DDP arrangement with their Chinese supplier. This can simplify things on paper — the supplier handles the export, freight, and (nominally) the import clearance. But in practice, DDP from China to Canada often involves a Canadian agent acting as the IOR on the supplier's behalf, and if that arrangement isn't transparent and well-documented, you may find yourself with unexpected exposure.
If you're using DDP terms, always confirm in writing who the importer of record will be on your entry documents. Don't assume your supplier's logistics team has this under control.
The most important thing you can do as an IOR is treat compliance as part of your procurement process — not an afterthought at the time of shipment. Here's what that looks like in practice:
Work with a licensed customs broker: A good broker will classify your goods correctly, flag valuation issues before they become problems, and keep your CARM account current. They don't eliminate your IOR liability, but they dramatically reduce your risk of compliance failures.
Get your HS codes right before you order: Tariff classification affects duty rates and may trigger additional compliance requirements. Don't rely on your Chinese supplier to tell you the HS code — they classify for Chinese export purposes, not Canadian import purposes.
Understand your product regulations before you commit: If your product requires ISED certification, CSA testing, or Health Canada registration, that needs to happen before the goods arrive in Canada — not after they're stuck in a warehouse.
Keep records from day one: Every purchase order, every invoice, every payment — maintain these systematically. You won't remember the details of an order four years from now when CBSA asks.
Understand your landed cost: The IOR is responsible for duties and taxes. If you haven't accurately modelled your landed cost including all import charges, you may find that your margins disappear once the goods hit the border.
In most cases, no — not directly. To be an IOR in Canada, a party needs a Canadian Business Number (BN) and must register with CBSA. A Chinese supplier can become a non-resident importer (NRI) if they register in Canada and take on IOR responsibility, but this is uncommon. Most suppliers are not set up for this and don't want the liability. If a supplier is offering DDP terms, clarify exactly who holds the IOR role on the import entry.
No. Your freight forwarder and customs broker act as your agents — they operate in your name and on your behalf. The importer of record is the party identified on the B3 entry form (or eDEC in CARM). Unless you have a specific contractual arrangement where another party agrees to be the IOR, you are the IOR.
The beneficial owner is the party that actually owns the goods and benefits economically from the import. The IOR is the party legally responsible for the import declaration. In most straightforward transactions, these are the same entity — you buy the goods and you import them. But in some supply chain arrangements (consignment, agent imports, etc.), they can differ. CBSA is primarily concerned with the IOR for duty and compliance purposes.
You need a Canadian Business Number (BN) with an RM import/export program account. You then register in the CARM portal. Your customs broker can walk you through this process and help you post the required security bond.
You must retain all records related to each importation for six years. This includes purchase orders, invoices, packing lists, bills of lading, proof of payment, correspondence with suppliers about the goods, and any customs entry documents. Keep both the commercial documents and the import entry records.
Understanding your role as importer of record is step one. Executing imports correctly — with the right supplier documentation, accurate HS codes, compliant products, and a clear landed cost model — is where the real work is.
At Epic Sourcing Canada, we work with Canadian SMEs who are importing from China and Asia, helping them build sourcing programs that are built for compliance from the start. That means getting the documentation right, understanding the regulatory requirements for your specific products, and building the kind of supplier relationships that reduce the risk of unpleasant surprises at the border.
If you're importing — or planning to — and you want a team in your corner that understands how Canadian import compliance actually works, get in touch with us here. We're happy to talk through your situation and point you in the right direction.
