Do you have burning questions about the import and export of IT gear? We delve into everything from HS codes and export licenses to certifications and the risks involved in global trade compliance.
Can a foreign company be an Importer of Record (IOR)?
A foreign company must have local registration in the destination country to act as an Importer of Record. Foreign companies can either
Learn more in our Importer of Record guide.
What are the responsibilities of an IOR?
Some of the most significant responsibilities of an Importer of Record include:
What is a consignee?
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.
When should I use an Importer of Record service?
You should use an Importer of Record (IOR) service when your company needs to ship goods into a country where it does not have a registered legal entity, as the IOR assumes responsibility for meeting all compliance requirements.
The service is especially valuable for shipments involving complex documentation, regulatory approvals, or strict customs procedures, as the IOR manages and facilitates smooth customs clearance, ensuring goods enter the country without delay.
Can the shipper be the Importer of Record?
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.
What are the risks taken by the IOR?
Does utilizing IOR services mitigate tax liability in the country I am shipping to?
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-related risks.
Find out more about the risks taken on by the Importer of Record.
What are Incoterms?
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.
What does DDP mean in shipping terms?
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.
What does DAP mean in shipping terms?
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.
What is the difference between DDP and EXW in global trade?
Understanding Delivered Duty Paid (DDP) vs Ex Works (EXW) is critical in global trade. The DDP incoterm places all responsibility on the seller, including shipping, insurance, customs duties, and taxes, until the goods are delivered to the final destination, whereas Ex Works (EXW) places all the responsibility on the buyer.
What is 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.
How can I get help with international trade compliance?
International trade compliance involves many moving parts, 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.
What is import/export compliance?
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.
What documents are usually required for customs clearance?
Every country has its own unique set of documents needed at customs. The most common documents are a Commercial Invoice, an Airwaybill, a Bill of Lading, a Certificate of Conformity, and a Country of Origin Certificate.
What is an export license?
An export license is a document granting the holder permission to act as an exporter of specific goods. It allows the holder to conduct export transactions within the limits of the specific license. Different countries have several conditions that need to be met in order to qualify.
Explore each country’s different import/export requirements here.
What is customs clearance?
Customs clearance refers to the process of legally importing goods into or exporting them out of a country. Customs clearance documents show what goods are being brought in or out, their intended use, and record all duties and taxes that apply to those goods that have been paid.
How long does customs clearance take?
Customs clearance can take anywhere between a few days and a few weeks, depending on the country you are importing into. TecEx provides accurate breakdowns of lead times for all our shipments.
What is a Power of Attorney in customs clearance?
A POA in customs clearance allows a third party to act on behalf of an importer or exporter in customs-related matters.
Do all countries require a POA for global shipping?
Not all countries require a POA, but it is mandatory in many major shipping destinations, particularly when using a customs broker.
Can a POA be used for multiple shipments?
Yes, a POA can cover multiple shipments, depending on how it is drafted.
What is TecEx’s preferred shipping solution?
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.
What does dual-use mean?
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 parts with 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.
How do I import dual-use IT hardware?
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.
Where can I find a data center relocation service?
TecEx is the ideal data center relocation service provider. Our DDP shipping solution includes both IOR and EOR, which means we can act as an exporter from the initial country and an importer into the final destination.
How are customs duties calculated?
Customs duties are calculated differently from country to country. Generally, they 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 the purchase value. In our Global Capabilities section, we delve into the country-specific tax structures.
How to calculate VAT on international shipments?
VAT is calculated as a percentage of the total invoice value, including shipping costs, based on the destination country’s rate.
Can VAT be deferred in global shipping?
Yes, VAT deferment allows businesses to delay VAT payments until the goods are sold or imported, helping manage cash flow.
Why is VAT important in international shipping?
VAT is crucial for compliance with local tax laws, avoiding fines, and ensuring the smooth delivery of goods across borders.
How does VAT affect international shipping?
VAT impacts the cost structure and pricing of international shipments, requiring careful calculation and compliance with local regulations.
What are the challenges of VAT in global trade?
Challenges include varying VAT rates dependent on which country you’re shipping to, complex regulations, and the need for accurate record-keeping and compliance.
What is the difference between VAT and GST?
VAT is a value-added tax applied at each stage of production or distribution, while GST is a similar tax but used in countries like Australia, Singapore, and India.
What is the difference between import and export?
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.
Do WTO members have an automatic free trade agreement?
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 have already committed to reducing trade barriers, they may also establish free trade agreements independently from the WTO framework.
Can data center technology be shipped globally?
Yes, data center technology, such as servers and racks, can be shipped internationally, and we at TecEx have successfully helped ship them. These shipments, however, require careful documentation and complex compliance. We help data center clients with their global tech rollouts by implementing a tailored Delivered Duty Paid solution. We manage all customs tasks, taking on end-to-end responsibility.
What happens if a shipment is stuck at customs?
If your shipment gets stuck at customs, TecEx can get it back on track. With our Delivered Duty Paid solution, we can help provide the accurate customs documents needed to clear your shipment.
How can supply chain management reduce costs in international shipping?
Effective supply chain management reduces costs through:
A well-managed supply chain can lead to significant cost savings and improved profit margins.
How does effective supply chain management improve customer satisfaction?
Effective supply chain management enhances customer satisfaction by:
A well-managed supply chain ultimately contributes to a positive overall customer experience, driving repeat business and referrals.
What are the components of supply chain management?
The key components of supply chain management include:
Each component is vital in ensuring the supply chain operates smoothly and effectively.
What are common challenges in supply chain management?
Common challenges in supply chain management include:
Addressing these challenges requires proactive risk management and strategic planning.
What is centralized procurement?
Centralized procurement or purchasing is a system in which a single department or team manages the purchasing decisions for an entire organization. The department is generally located at the organization’s headquarters and handles all the purchasing for all branches or locations of the business.
What is decentralized procurement?
Decentralized procurement means the local branches, business units, or geographical units are responsible for their purchases. This means the procurement strategy is spread across many different locations or countries.
What is the difference between centralized and decentralized procurement?
Generally speaking, centralized procurement is a strategy in which all purchasing decisions are made at a single location, typically by a central team or department. In contrast, decentralized procurement is a system in which individual stakeholders make purchasing decisions for their respective business units or locations.
What are the benefits of central procurement?
Compared to a decentralized approach, the benefits of using a central procurement approach include:
What is the benefit of centralized purchasing relative to decentralized purchasing?
When adopting a centralized purchasing approach, you can access economies of scale, which are 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, which gives you better negotiating power.
What countries does TecEx support?
TecEx supports over 200 markets. Visit our global capabilities map to see which lanes we ship to and which are currently closed.
Can TecEx act as both the Importer of Record and Exporter of Record?
In most cases, yes. Depending on our shipment needs, we can act as both the Importer of Record and the Exporter of Record. Once you provide us with your shipping origin and destination, we can quickly determine which solution best suits you.
Let’s find a solution that
works for you
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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.
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