The Challenges
Centrally procuring and globally deploying data center equipment
Compliance regulations for dual-use technology in South Korea
Locally registered company not willing to take on the risk of acting as the IOR
Product-specific and country-specific certificates are difficult to obtain
Our Solution
Seamlessly shipping data center gear into South Korea required us to:
- Manage an end-to-end shipment of the new hardware,
- Act as the IOR for the client utilizing our DDP solution, and
- Decommission the client’s existing equipment in South Korea.
The Result
Our tailored DDP solution facilitated smooth customs clearance and allowed the gear to be installed on the day of delivery, meaning zero downtime for the client.
Local Versus Central Procurement
Buying locally may seem like an easy solution, bypassing the need to ship and import tech hardware across borders. However, local procurement comes with a lot of risks. From various soft inefficiencies, like language barriers, to possible risks of non-compliance with internal standards, and most commonly, the compounding complex transaction structure, it becomes a more complex project management exercise.
The client realized this and turned to their trusted tech supplier in the US, choosing the path of central procurement. However, the supplier was not set up to handle the complexities of shipping the goods via a DDP incoterm to the data center in South Korea.
IORs, Data Centers, and Networking Gear
Shipping data center gear across borders is particularly complex due to these three factors:
- Data centers can’t act as your IOR,
- The IOR must be locally registered in the import country, possess knowledge of local customs procedures, and be registered as an importer, and
- Dual-use hardware comes with a lot of regulatory measures.
Data centers are not able to act as your Importer of Record, as they don’t own the goods and don’t have the knowledge to navigate customs. Another option would be to act as the IOR yourself. Now, while the client was locally registered in South Korea, they were not prepared to use their own local entity details. This was because of the level of risk involved, and they were also not set up with the appropriate import licenses.
Importing to South Korea means navigating stringent trade regulations. Certifications for tech goods like the Korea Certificate (KC) and Electrical Safety Certificate (ESC) can take weeks to obtain. Furthermore, the networking gear involved was considered dual-use, adding additional complexity to the customs requirements.
TecEx’s DDP Solution for Data Center Refreshes
After consulting with the client and assessing their specific pain points, we were able to decommission the goods already in South Korea as well as provide the client with a full door-to-data center delivery of the new hardware.
Pick up the centrally procured data center equipment from the supplier in the US.
Manage the DDP shipment into South Korea, from pick-up and customs clearance to final-mile delivery to the data center.
Decommission the existing equipment and install the new gear on the same day to avoid downtime.
As the IOR, we facilitated a seamless DDP shipment that resulted in no downtime for the company and provided genuine peace of mind, as the goods cleared customs efficiently and effectively. We ensured open communication channels with the engineers at the data center, allowing the equipment to be installed on the day of delivery.
Looking to Import into South Korea?
Reach out to refresh your data center infrastructure globally with minimal disruption. Let us handle seamless delivery into South Korea and other key markets.
