Global Trade Post Brexit: The TecEx Solution
25 January 2023With Brexit, many companies have had to restructure how they do business.
An Uncertain Future
Helping our Clients Cost-Effectively Showcase their Products Through Our Temporary Import Solution
Type of Transaction: Temporary Import with Possibility of Permanent Import
Import Region: Europe
Additional Compliance: Temporary Import Permit
Introduction
There is no such thing as a one-size-fits-all solution when it comes to complex cross-border shipping of high-value IT equipment. Each case has its unique complexities, which was exactly the situation when our client, an Original Equipment Manufacturer, approached us to assist with a particularly intricate shipment.
This shipment was unusual because it was not a simple temporary import solution. Our client was sending demo equipment to Europe and after a predetermined amount of time, the equipment would either have to be returned or purchased and kept in the destination country.
This element of uncertainty placed added complexity to an already challenging shipment type and required extensive compliance work.
The TecEx Process
The Shipment
Due to the potential for permanent import, our client had two atypical requirements. First, they wanted to ship the equipment without paying taxes and duties upfront. This required an entity to stand liable for the full amount in the case that the goods were imported permanently. This entity incurs significant risk that our client was not comfortable with taking on.
Second, they required a protocol to be in place that would enable the equipment to be sent back, should that prove necessary.
Sourcing the Permits
In order to arrange tax and duty-free temporary import, we required a specialized permit. The permit in question introduced two complexities. Firstly, an entity now had to be found to stand for the full value of the duties and taxes, which would ordinarily be paid immediately on arrival.
Secondly, the permit had to be sourced and accurately completed which required expert knowledge. There were also additional hard-copy customs documents that needed to be provided to the freight company.
An Excellent Choice
TecEx expertly handled all the complexities of this shipment, putting ourselves down as the entity responsible for the payment of all taxes and duties, taking on all risk. We also managed all paperwork requirements seamlessly.
As a result, instead of having to make a significant upfront payment, our client paid a minor percentage of the duties and taxes per month for the duration that the goods remained in the country: a fraction of the total importation cost.
A Flexible Solution
Our client was completely confident in our ability, and since we were liable for the full payment of duties and taxes, and could continue with their day-to-day without the stress of potential risks.
Temporary imports are an extremely complex but also necessary import type for those offering demo or proof of concept services. Our flexibility and expert knowledge make us an ideal partner, particularly where there is uncertainty about whether the equipment is to be designated for permanent import.
In the end, our client’s goods were permanently purchased, and the end-user placed an additional order for more of the same goods, winning our client a massive deal. Our client saved money on taxes and duties and enjoyed total confidence in their shipment being handled expertly and efficiently by working with us.
