International Shipping Intermediate

Exporter of Record

Also known as: EOR, Principal Party in Interest, USPPI

Definition

The exporter of record (EOR) is the party legally responsible for an international shipment leaving a country. In the United States, this party is called the U.S. Principal Party in Interest (USPPI). The EOR ensures compliance with export regulations and files required documentation.

EOR Responsibilities

Regulatory Compliance

  • Determine if export license required
  • Screen against denied party lists
  • Comply with export control regulations
  • File Electronic Export Information (EEI)
  • Maintain export records

Documentation

  • Commercial invoice preparation
  • Shipper’s Letter of Instruction
  • AES/EEI filing (when required)
  • Export license applications
  • Certificate of origin

Who Is the EOR?

Determining EOR (US USPPI)

Scenario EOR/USPPI
US company sells to foreign buyer US seller
Foreign buyer purchases in US Foreign buyer (or US agent)
US company ships to own foreign subsidiary US parent company
Drop ship from US supplier Party responsible for export

General Rule

The EOR is the party that:

  • Has the authority to determine if goods will leave the country
  • Benefits most directly from the export transaction

EOR Requirements by Country

United States

  • USPPI must be in US or authorized agent
  • EIN or SSN required
  • AES filing for shipments >$2,500
  • BIS compliance for controlled goods

European Union

  • EU established entity
  • EORI number required
  • Export declaration filing
  • Dual-use goods regulations

Other Countries

  • Requirements vary
  • Often the selling party
  • May need export registration
  • Specific documentation requirements

EEI/AES Filing Requirements

When Filing Required (US)

  • Shipments valued over $2,500
  • Shipments requiring export license
  • Certain commodities regardless of value
  • Certain destinations

What’s Filed

  • Shipper information
  • Consignee details
  • Commodity description
  • Value and quantity
  • Transportation details

Exemptions

  • Most shipments to Canada
  • Shipments under $2,500 (most commodities)
  • Personal effects
  • Diplomatic pouches

EOR vs. Freight Forwarder

EOR Freight Forwarder
Legal responsibility Agent/service provider
Files documentation or authorizes agent Files on behalf of EOR
Bears export compliance risk Acts under EOR’s authority
Named on export documents May prepare documents

Important: Freight forwarders can file AES as agents but don’t assume EOR responsibility.

Export Compliance Considerations

Denied Party Screening

  • Check all parties against restricted lists
  • SDN List (OFAC)
  • Entity List (BIS)
  • Denied Persons List
  • Unverified List

Export Controls

  • EAR (Export Administration Regulations)
  • ITAR (International Traffic in Arms)
  • OFAC sanctions
  • Determine ECCN classification

Documentation Retention

  • Keep records 5 years
  • Export declarations
  • Licenses and applications
  • Correspondence
  • Screening documentation

Penalties for Non-Compliance

Civil Penalties

  • Up to $300,000 per violation (BIS)
  • Up to $1,000,000+ (OFAC)
  • Denial of export privileges

Criminal Penalties

  • Fines up to $1,000,000
  • Imprisonment up to 20 years
  • For willful violations

EOR Services

When Needed

  • Company lacks export compliance expertise
  • Occasional exports not worth building capability
  • Complex controlled goods
  • Multiple country requirements

Provider Types

  • Customs brokers with export services
  • Freight forwarders
  • Trade compliance consultants
  • Specialized EOR companies
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