High-Risk Data Center Networking Imports in India
Reading Time: 3 minutes
Shipment Value: Over $2 Million
Ship to: India
Products Shipped: Server Racks
Navigating a Maze of Regulations and Red Tape
The tech sector in India is rapidly growing, with aggressive efforts being made by government agencies to grow the industry. Yet the region has endemic issues that are counterproductive for tech growth, making importing into the region complex.
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 the case for our client, one of the world’s biggest web hosting service providers.
The Import 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 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. This lack of organizational knowledge can lead to critical oversights resulting in goods being seized at customs, ultimately increasing costs and lead times. Furthermore, any mistakes in documentation 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 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 dedicated in-country team allowed us to advise our client and source all the necessary importation documents and permits required for the 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, TecEx coordinated the movement of equipment with the manufacturer based on available stock, which in this case was from America and Taiwan.
TecEx also advised on the best route possible to expedite the shipment and reduce lead times significantly.
The Outcome
TecEx readily stepped up to the challenge and easily navigated the complexities of this shipment. With our value-added services, we could address our clients’ every concern.
Our dedicated in-country team deconsolidated the shipment before completing the final mile delivery to multiple locations across India. Our effectiveness impressed our client, and the company has requested that we manage all future international shipments on their behalf.
The TecEx Way
Deploying IT gear to data centers should not be a headache. By outsourcing global shipments to TecEx, our clients can rest easy knowing that the entire shipment process is in our hands. TecEx can streamline the import process and resolve our clients’ pain points.
Looking for a
similar solution?
Contact TecEx to help with shopfitting, design, and architectural projects in foreign markets. Our global presence, project management, import compliance, and logistics network allow us to offer a comprehensive end-to-end solution for clients throughout the supply chain.
Looking for a
similar solution?
Contact TecEx to help with shopfitting, design, and architectural projects in foreign markets. Our global presence, project management, import compliance, and logistics network allow us to offer a comprehensive end-to-end solution for clients throughout the supply chain.