Does the Importer of Record have to be a local entity in the destination country?

Yes for most major markets. The EU requires an EU-established IoR (or a registered Indirect Customs Representative) for customs entries. The UK requires a UK-established entity post-Brexit. The US has more flexibility but most carriers and customs brokers prefer a US entity. Workarounds exist (Indirect Customs Representatives, fiscal representation), but they have their own cost and complexity.

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