When operating at a global scale, even the most capable organizations recognize that certain elements of their supply chain carry disproportionate risk. For a leading multinational digital infrastructure provider — with a footprint spanning multiple continents — the turning point came during large-scale data center commissioning and decommissioning efforts. These projects exposed the limitations of managing hardware imports in-house, particularly where compliance with international trade laws and dual-use regulations was concerned.
Data Center Commissioning
Before diving into the specifics of the case, it’s important to understand the critical role of these two processes. Data center commissioning refers to the setup and operational launch of a new facility, requiring seamless delivery, installation, and testing of advanced IT equipment. This phase often includes sourcing and shipping networking hardware and computing infrastructure to various regions, frequently crossing borders and encountering differing regulations.
Data Center Decommissioning
In contrast, data center decommissioning involves the safe and secure shutdown, removal, and often relocation or disposal of existing equipment. It presents similar logistical challenges but adds complexity due to equipment reclassification, disposal requirements, and increased scrutiny over end-of-life procedures — especially when hardware retains data or is repurposed internationally.
Despite having operational teams on the ground in each location and significant internal capabilities, our client quickly realized that taking full responsibility for the import of high-value, high-risk equipment created significant exposure. More specifically, acting as their own Importer of Record (IOR) was becoming unsustainable.
The Challenges | Complex Hardware, Even More Complex Compliance
Dual-Use Compliance
HS Code Classification
Licensing and Permits
Documentation Retention
Decommissioning Complexity
In global technology deployments, especially those involving data center infrastructure, hardware often falls under the category of dual-use goods — items that can be used for both civilian and military purposes. These classifications significantly raise the compliance bar.
As the IOR, the client bore full responsibility for ensuring every shipment met local legal requirements, including correct Harmonized System (HS) code classification, acquiring permits and licenses, and accurately calculating and paying duties and taxes. Any oversight, however minor, had the potential to result in delayed shipments, fines, reputational damage, or even seizure of goods.
Beyond the transactional risks, there were long-term legal obligations. For example, customs authorities in many countries require the IOR to retain documentation for up to seven years for audit purposes. This meant maintaining organized, verifiable records for every international shipment — an increasingly heavy administrative burden for the client’s already-stretched procurement and legal teams.
The risks intensified during data center decommissioning events, where large quantities of used hardware were being moved between sites or out of service entirely. These hardware redeployments triggered unique compliance challenges due to differences in equipment condition, classification, and destination-specific import controls.
It became clear that continuing to act as their own IOR was not only inefficient, it was risky.
The Solution | TecEx Takes the Lead
Acknowledging that import compliance was not a core business function, the client sought a partner that could handle the regulatory and logistical complexity of their global hardware shipments. They turned to TecEx, a specialist in global IOR services and customs compliance for high-tech equipment.
TecEx implemented a tailored solution using our Delivered Duty Paid (DDP) model. This meant TecEx took on end-to-end responsibility for every shipment, from initial pickup to final delivery. TecEx managed all customs-related tasks, including accurate HS classification, tax and duty calculation, licensing, documentation, and filing.
Crucially, our team integrated seamlessly with the client’s preferred logistics providers and internal systems. This ensured smooth handoffs and complete shipment visibility across the entire supply chain. Whether hardware was being deployed for a new data center commissioning project or moved during a decommissioning, TecEx ensured that the compliance burden was fully lifted from the client’s teams.
The Outcome | Risk Removed, Efficiency Unlocked
The results were immediate and measurable. With TecEx managing the compliance and import process, the client dramatically reduced delays, avoided potential penalties, and eliminated the need for in-house resources to manage import documentation and audits.
During commissioning projects, TecEx enabled faster go-to-market timelines by ensuring that essential equipment cleared customs without delay. This allowed new data centers to become operational on schedule, a critical advantage in a highly competitive industry.
During decommissioning, TecEx ensured the smooth transition of sensitive hardware, handling all cross-border regulations and asset reclassification. This prevented any compliance slip-ups that could have triggered legal or reputational fallout.
Freed from the administrative and legal burdens of acting as IOR, the client’s procurement team was able to refocus on strategic activities. At the same time, the broader organization gained the flexibility to scale international operations more confidently.
The client’s trust in TecEx deepened further when they expanded the scope of our services. In addition to managing their internal deployments, TecEx was entrusted to coordinate imports for their global reseller network, centralizing compliance under one reliable partner.
The TecEx Difference
At TecEx, we specialize in helping companies simplify complex cross-border hardware deployments. Our deep knowledge of global trade regulations — especially concerning dual-use equipment — allows us to offer true end-to-end solutions.
Whether you’re setting up a new facility or winding one down, our team ensures that your data center commissioning and decommissioning projects proceed smoothly, compliantly, and without delay.
Looking for a Similar Solution?
Contact TecEx today and let us help you with your data center needs. Discover how we can mitigate the risks associated with your global tech deployments and ensure your operations continue uninterrupted.
