When Importers of Record May Not Be Needed: De Minimis and Indirect Representation

For shippers, the question of whether a shipment needs a named Importer of Record (IOR) turns on two details: whether the destination requires a customs declaration with duties or taxes due, and who is allowed to make that declaration. A low shipment value or a broker’s involvement doesn’t automatically remove the need for a responsible party. The available exceptions depend on the destination’s rules, and several low-value exemptions are narrowing or ending.

What the IOR is responsible for

The IOR is the party responsible for the customs entry. That includes providing accurate registration details, declaring the goods’ value correctly and paying duties and taxes that are due. For commercial shipments, the IOR must be a registered business with the required tax or business number and, where applicable, an importer code. The person receiving a shipment may be an individual, but that doesn’t make the individual eligible to serve as the IOR.

The distinction matters when teams plan a new lane or decide how to handle cross-border orders. The consignee, the party named as importer and the party submitting the declaration may have different roles. Shippers need to establish who holds each responsibility before goods move, since a delivery address alone doesn’t settle who is accountable for the entry.

Quick answer: Whether a shipper needs to be named as IOR depends on the destination country, the shipment and who makes the customs declaration. A low-value shipment or the use of an indirect customs representative does not, on its own, mean no importer or declarant is required.

Low-value shipments face fewer exemptions

De minimis rules have traditionally allowed some shipments below a destination’s value threshold to enter without duties. When no duty is due and the destination’s rules don’t require a named importer for that entry, a shipment may not need an IOR. The threshold and the treatment of the shipment vary by market, so the value of the goods alone doesn’t establish that the exception applies.

Several changes described in the source reduce the reach of this route:

• United States: The $800 de minimis exemption was suspended almost entirely in August 2025. The source links to U.S. Customs and Border Protection information about the change.

• European Union: The €150 exemption ended in July 2026. A flat €3 duty per declaration line replaced it, while full tariffs are set to phase in through 2028. The source provides details on the European Union customs changes.

• United Kingdom: The £135 exemption is set to be phased out by October 2028, earlier than the original March 2029 deadline.

For operations teams, the practical consequence is that a shipment that previously qualified for duty-free treatment may now incur a charge or require additional entry steps. That can affect how a seller sets up its import process, what information it gathers before dispatch and which party is prepared to take responsibility at the border. Teams should check the current threshold and entry rules for each destination and shipment type rather than assume that a low declared value removes the IOR question.

The source also links to an explanation of U.S. de minimis rules. The relevant point for planning is that these rules are destination-specific and can change. A process built around one market’s former threshold may not work for another market or for later shipments to the same destination.

Indirect representation depends on local rules

Indirect representation offers another possible route. The shipper is therefore not named as the IOR in the same way as under direct representation. Whether this arrangement is available depends on the destination.

The source says indirect representation is prohibited for imports in Germany, China, India, Mexico, Brazil, Singapore, Spain and Italy. For those markets, it describes two alternatives: the business can register as the named IOR and use direct representation, or appoint a Fiscal Representative to make the declaration on its behalf. Those choices involve different responsibilities, so a broker’s participation should not be treated as proof that the shipper has no importer obligations.

Japan is identified as a different case: indirect representation is permitted there without a Fiscal Representative. That makes it a comparatively straightforward example of the arrangement described, but it doesn’t establish a general rule for other destinations. Shippers serving several markets may need separate workflows for each one, even when they use the same broker or fulfillment model.

Before relying on indirect representation, businesses should confirm that the destination permits it and establish who will provide the required shipment and registration information. They should also clarify who will be named on the declaration and who is responsible for any duties or taxes due. These details help avoid building an import process around an assumption that doesn’t hold in a particular market.

Build the importer question into lane planning

Neither exception means that commercial imports can simply cross a border without an accountable party. De minimis treatment may remove duties for qualifying shipments where local rules allow it; indirect representation may change who makes the declaration. Each works only within the conditions set by the destination.

For shippers, the useful review is specific: identify the destination, shipment type and applicable value threshold; check whether duties or taxes are due; and confirm who may make the declaration. Where a low-value exemption is being phased out or indirect representation is unavailable, the business may need to register as the IOR or arrange for a Fiscal Representative. The right setup can vary across destinations and may need revisiting as thresholds change.

The source notes that GLOBAL GATEWAY by Shipping Solutions provides logistics, export documentation and compliance support, including guidance on VAT and tax documentation. Its team can be contacted through its Global Gateway page. Shippers relying on either exception should verify the arrangement for each destination before dispatch, especially where the source describes a threshold change or a restriction on broker representation.

Export Compliance

About the Author: Kayleigh Mileham. Mileham works in the partnerships team at VAT IT Stream, which helps businesses with cross-border trade, freight and foreign import tax registration and reclaim.

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