A Heavily Regulated Destination

The movement of networking equipment into India is heavily regulated, and there are several details to consider when shipping goods in or out of the region. For example, the risk of revaluation is exceptionally high in India, often resulting in changing costs that can negatively affect profit margins or make predicting costs uncertain. Other restrictions include permit requirements on wireless goods, which can drastically increase lead times.

Despite the prominence of trade in India, it remains a high-risk lane, and putting your trust in an Importer of Record (IOR) and Customs Compliance specialist can transfer that risk from your business.

That was precisely the case for our client, one of the world’s biggest web hosting service providers.

The Challenge

Data center networking equipment is some of the most regulated goods in international trade because of its dual-use status. The Importer of Record (IOR) is held responsible for all duties and taxes and ensures that all local requirements are met. This includes sourcing and acquiring all the correct permits and licenses for your goods.

Although our client has multiple entities globally, they do not have an in-house import and compliance team to manage their shipments from start to finish. This lack of organizational knowledge can lead to critical oversights resulting in goods being seized at customs, ultimately increasing costs and lead times. Any errors can have severe legal and financial implications for the company.

Since the cost and resources necessary to train an in-house team and keep them up to date on the ever-changing global import and customs compliance regulations often are not worth the time or money, many companies turn to specialists to help them.

The TecEx Solution

TecEx took on all the responsibilities by dealing directly with the original equipment manufacturer (OEM) to manage the preparation and compliance for the shipment. Our vast compliance knowledge and the dedicated in-country team allowed us to advise our client and source all the necessary importation documents and permits required for controlled items, even assisting with the BIS certification directly from the manufacturer.

Furthermore, we overcame the impact of global supply chain issues and the current chip shortage by building a flexible shipping solution for our client by coordinating the movement of the equipment with the manufacturer based on where they had stock available, in this case, from America and Taiwan.

TecEx was also able to advise on the best route possible to expedite the shipment and reduce lead times significantly.

The Result

TecEx readily stepped up to the challenge and easily navigated the complexities of this shipment. With a multitude of value-added services, we could address our clients’ every concern.

Our dedicated in-country team de-consolidated the shipment before completing the final mile delivery to multiple locations across India. Our effectiveness impressed our client, and the company has requested we manage all future international shipments on their behalf.

Conclusion

By outsourcing their global shipments to TecEx, our client could rest easy knowing that the entire shipment process was in our capable hands. TecEx could effectively streamline the import process and resolve our clients’ pain points.