Moving Servers in UAE19 May 2021
TecEx assisted as IOR and customs specialists with a multi-million-dollar shipment of server and networking equipment into the UAE.
Our client, a value-added tech reseller based in New York City, had realized that local markets were saturated.
But it could not deliver globally – nor could it meet local customers’ global needs and achieve expansion that way.
Many companies find their business growth and international competitiveness constrained by the very real challenges of importing controlled commodities, like IT hardware, into foreign territories including Russia, Brazil, and China.
To begin with, to import goods into a foreign country, companies need importer of record services (IOR) to act as the local consignee, and to take responsibility for any financial and legal import risks associated with the shipment. This consignee must also be a local tax-registered entity and have the appropriate registrations and permits to import controlled commodities.
Then there are changing laws across multiple jurisdictions, complex permit requirements and clearance procedures for ‘dual-use goods’ (which are heavily regulated), and the maelstrom of documentation.
In short, the ability to manage and maintain the required infrastructure, while remaining compliant, is cost- and resource-prohibitive for most companies.
TecEx explained the potential of global distribution to build scale, and the client was willing to ‘test’ TecEx with smaller shipments to difficult countries.
We shipped dual-use wireless encrypted network equipment from our client in the USA to tricky countries including Japan, China, Hong Kong, India, Brazil, Argentina, and Mexico. This radically extended the customers’ distribution network when it came to existing clients, and won new clients it couldn’t bid on previously.
So, what exactly did TecEx do for this client?
We successfully cleared over 150 shipments into 25+ countries for them.
We radically reduced time to deliver. In Hong Kong, for example, where it takes 15+ days to get a Trade & Industry Department permit for encrypted technologies, we could acquire the permit in less than six days.
Trade balance rules mean that shipping into Latin America is virtually impossible for foreign entities. The movement of computer technologies around these countries, especially Brazil, is heavily regulated. But TecEx could ship on very short notice, helping our client to keep its promises.
Our client is now carrying out shipments for some of Silicon Valley’s biggest and most impressive players – who would never have previously considered it for their international business, much less made it a key supplier.
It has a 99% customer retention rate, a two-year growth rate of 140% (with over 10 000 customers) and a coveted Top 30 ranking as one of ‘The Channel Company’s CRN Fast Growth 150’ in 2016.
We believe that we helped this client to change the game completely, by giving it the global passport and scale to go worldwide. To do this, TecEx leveraged our specialty knowledge in tech, our ability to maintain full ownership of the import process, our commitment to double- and triple-check for compliance at every point, and our hands-on service and expertise.
Within a few months of the first contact, the client requested the full suite of services and offered these to all customers, including its top tier.
In addition, the client was able to use its new global reach to attract new customers with global distribution requirements, tendering on deals that it had only dreamed of fulfilling in the past. This client’s global fulfilment capabilities now lead its sales process – finding this to be, easily, its biggest deal-closer.
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