1.Audit Risk: The Importer of Record is liable for audits for up to seven years, which can scrutinize past transactions and declarations.2.Financial Risk: There is a potential for unexpected costs and penalties, which are often unpredictable. These can arise from an audit, a revaluation of goods, or inaccuracies in calculating landing costs.3.Legal Risk: Non-compliance with import laws can lead to several legal repercussions, including the loss of import licenses and legal action against both the IOR and its directors.4.Operational Risk: Improper importing procedures can result in goods being temporarily held up or permanently seized by customs authorities.