Do you have burning questions about anything related to the import and export of IT gear? We delve into everything from what HS codes are used for to export licenses and certifications and the risks involved in global trade compliance.
International trade compliance refers to the adherence to laws, trade regulations, sanctions, and standards that govern the movement of goods across international borders. Effective trade compliance is crucial when navigating the global supply chain.
There are a lot of moving parts to international trade compliance, from understanding trade laws to risk management. Any international business must do its due diligence to meet compliance requirements. Working with a global trading partner like TecEx is the best way to streamline your trade operations for maximum efficiency without worrying about unnecessary roadblocks.
Yes, assuming the shipper has a registered legal entity in the destination country and can take on the financial and legal risk associated with this role. In fact, the shipper is expected to act as the IOR for any shipment using DDP incoterms. Find out more in our Importer of Record guide.
The consignee is the entity that takes ownership or responsibility of the goods once they have been cleared. In cases where the imported goods belong to the company in-country and are for internal use or storage, the consignee can act as an importer.
A foreign company must have registration in the destination country to act as an Importer of Record. Foreign companies can either
Learn more in our Importer of Record guide.
The way in which customs duties are calculated varies from country to country. Generally, these duties are calculated as a percentage of the value of the goods being shipped, but exact figures depend on the ECCN number and HS code of the specific product.
The valuation of the goods may also differ from country to country, with some requiring the commercial value of the goods to be used while others only require purchase value.
In our Global Capabilities section, we delve into the country-specific tax structures.
World Trade Organization (WTO) members – which include the United States, Canada, Mexico, China, and 160 more countries – are not bound by a universal trade agreement among themselves. Instead, the WTO establishes a framework for global trade laws (including both import controls and export controls) to promote open and fair trade. While WTO members already commit to reducing trade barriers, they may also establish free trade agreements independently from the WTO framework.
Delivered Duty Paid (DDP) is an incoterm stipulating the division of responsibility between the shipper and receiver. DDP terms place the least amount of responsibility on the receiver. This means the shipper is responsible for everything up to the final delivery.
Customs clearance refers to the process of legally importing goods into a country or exporting out of a country. Customs clearance documents show what goods are being brought in or out, occasionally their intended use, and record all duties and taxes that apply to those goods that have been paid.
Customs clearance can take anywhere between a few days to weeks, depending on the country you are importing into. TecEx provides accurate breakdowns of lead times for all our shipments.
Centralized procurement or purchasing is a system where a single department or team manages the purchasing decisions for an entire organization. The department is generally located at the organization’s headquarters, and it handles all the purchasing for all branches or locations of the business.
Compared to a decentralized approach, the benefits of using a central procurement approach include:
Incoterms are international commercial terms used within trade contracts for importing and exporting goods. This set of standardized contract terms allows for responsibility and liability to be apportioned to the buyer or seller during the shipping process.
TecEx’s Delivered Duty Paid shipping solution is our specialty. This is because we handle everything by taking the import risk off your shoulders and finishing with first-time customs clearance and delivery straight to the final address.
Importing refers to bringing goods into a country or, in the case of overseas shipping, when an importer from one country buys goods from another country to distribute them in the local market.
On the other hand, exporting is the term for goods produced locally but then distributed to foreign markets. In overseas shipping, an exporter from one country may send their goods and services to another country to sell in that local market.
Import/export compliance is a set of rules and procedures that need to be followed when either bringing goods into or out of a country. They are necessary to ensure you meet the legal requirements set out by the local governments and enforced by customs authorities.
An export license is a document granting the holder permission to act as an exporter of specific goods, allowing the holder to conduct export transactions within the limits of their specific license. Different countries have several conditions that need to be met in order to qualify.
The import and export of technology, particularly networking equipment, is highly regulated due to the dual-use nature of IT hardware. This means that this tech can be used for both civilian and military applications. As such, these items have the potential to be used for nefarious purposes. Common dual-use items include radio navigation systems and items that include parts that have GPS capabilities. Due to their potential for misuse, these items are strictly regulated. With our extensive product list and customs knowledge, TecEx is the leader in ensuring the compliant cross-border movement of dual-use goods.
Yes. Mitigating tax and associated risks is one of the major benefits of using an IOR. Since all clearance and filing are done in the Importer of Record’s name, they are responsible for all tax and associated risks.
Find out more about the risks taken on by the Importer of Record.
TecEx is the ideal data center relocation service provider. Our DDP shipping solution includes both IOR and EOR. This means we can act as an exporter from the initial country and importer into the final destination.
Due to the potential to be utilized in ways other than their intended function, dual-use equipment is highly regulated. This makes these products particularly challenging to import as additional compliance, inspections, and testing must be done before approval.
TecEx thrives when dealing with complex transactions and thus has a wealth of knowledge in the handling of dual-use equipment.
Some of the biggest responsibilities of an Importer of Record include:
Generally speaking, centralized procurement is a strategy where all purchasing decisions are made at a single location, typically by a central team or department. In contrast, decentralized procurement is a system where individual stakeholders make purchasing decisions for their respective business units or locations.
Decentralized procurement means the local branches, business unit, or geographical unit is responsible for its own purchases. This means the procurement strategy is spread across many different locations or countries.
When adopting a centralized purchasing approach, you have the ability to access economies of scale – which is lost when you adopt a decentralized model. You can achieve this by buying from a trusted vendor with whom you have built a solid foundation, giving you better negotiating power.
DAP, Delivered at Place, describes a shipping incoterm in which the seller is only partly responsible for goods being delivered to a named place of destination.
Here, the seller is responsible for the delivery of goods to a named destination, but they are not responsible for costs like import taxes or duties.
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Fill in the form to get in touch, and our expert team will contact you with a bespoke customs compliance solution to suit your needs.