Importer of Record Explained: Why It's the Key to Selling in Africa
Every international brand selling into Africa hits the same wall: you need a local entity to import goods legally. The Importer of Record model is how smart brands solve this without setting up a subsidiary.
You've identified demand. You've sourced product. You've even found a marketplace partner. Then someone asks: "Who's your Importer of Record?" — and the entire plan stalls. If this sounds familiar, you're not alone. The IOR question is the single most common blocker for brands entering African markets, and the least understood.
What Is an Importer of Record?
An Importer of Record (IOR) is the legal entity responsible for ensuring that imported goods comply with all local laws and regulations in the destination country. The IOR's name appears on customs declarations, takes responsibility for duty and VAT payments, and is accountable to the local revenue authority — in South Africa's case, SARS — for the accuracy and legality of every import.
Think of the IOR as the local guarantor of your supply chain. Without one, your goods cannot legally enter the country. With the wrong one, you're exposed to compliance risk, delays, and penalties. With the right one, you have a seamless pathway from factory to marketplace.
Why Can't You Just Import Directly?
Most African countries require the importer to be a locally registered entity with specific licences and registrations. In South Africa, this means a CIPC-registered company, a SARS customs registration (including a customs code and VAT number), and often category-specific approvals depending on what you're importing. If you don't have a South African entity, you simply cannot clear goods through customs in your own name.
Some brands attempt to work around this by having their freight forwarder or clearing agent act as IOR. This is risky. A clearing agent processes paperwork — they don't take legal responsibility for the goods. If there's a compliance issue, an incorrect classification, or a dispute with SARS, the liability defaults to whoever's name is on the customs declaration. Make sure that entity is properly equipped and incentivised to get it right.
What Does a Good IOR Partner Actually Do?
Customs & Compliance Management
A proper IOR manages your customs declarations end-to-end: tariff classification, duty calculation, document preparation, and submission to SARS. They maintain the registrations needed to import across all product categories and stay current on regulatory changes that could affect your shipments.
Duty & VAT Administration
The IOR pays duties and VAT on your behalf at the point of import, then reconciles these costs within the agreed commercial terms. In South Africa, VAT on imports is payable at the border — meaning your IOR needs sufficient cash flow and credit facilities to fund clearance without delaying your goods.
Product Compliance Screening
Before your goods ship, a good IOR will screen your product range for compliance requirements: NRCS letters of authority for electronics, SAHPRA registrations for health products, Department of Agriculture permits for food items, and Consumer Protection Act labelling requirements for everything. Finding these gaps before shipping prevents costly holds and rework at the border.
Risk & Liability Management
The IOR carries regulatory liability for every import. A credible IOR maintains proper insurance, has established relationships with SARS, and has the legal and operational infrastructure to manage disputes, audits, or investigations if they arise.
IOR vs. Setting Up a Local Subsidiary
| Factor | IOR Partner | Own Subsidiary |
|---|---|---|
| Time to market | 2–4 weeks | 3–6 months |
| Setup cost | Minimal (service fees) | R100K–R500K+ (legal, registration, staffing) |
| Ongoing overhead | Variable, tied to volume | Fixed (office, staff, compliance, accounting) |
| Compliance risk | Shared with IOR partner | Fully owned by you |
| Scalability | Scales with your volume | Requires incremental investment |
| Exit flexibility | Easy to wind down | Complex deregistration process |
| Best for | Market testing, speed, capital efficiency | Long-term, high-volume commitment |
For most international brands entering African markets, the IOR model is the clear winner for initial market entry. It eliminates months of setup, removes fixed overhead, and lets you test demand with real sales data before committing to permanent infrastructure. If the market proves out, you can always establish a subsidiary later — informed by actual performance data rather than projections.
How MoreShores Operates as Your IOR
MoreShores holds all the licences, registrations, and infrastructure needed to act as your Importer of Record across South Africa, Ghana, and Kenya — with Nigeria, Egypt, and Morocco in our expansion pipeline. But we go far beyond basic customs clearance.
As a full-stack e-commerce enablement platform, we combine the IOR function with warehousing, fulfilment, and marketplace operations. This means the entity importing your goods is the same entity storing, listing, and selling them — creating a single accountable partner across your entire in-market value chain.
Our 25+ years of supply chain experience, combined with active operations processing 1,500+ orders per month, means we've seen and solved virtually every import scenario across our product categories: electronics, home goods, beauty, baby products, sports equipment, and auto accessories.
Ready to Import?
If the IOR question has been holding back your African market entry, let's solve it. We'll assess your product range, confirm compliance requirements, and give you a clear timeline to first sale.