Navigating a Maze of Regulations and Red Tape
The tech sector in India is rapidly growing, with government agencies making aggressive efforts to expand 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 several details must be considered 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 impact profit margins or make cost prediction 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. By entrusting an Importer of Record (IOR) and customs compliance specialist, you 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 one of the most heavily regulated goods in international trade due to its dual-use status. The Importer of Record (IOR) is responsible for all duties and taxes, ensuring 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 and 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 are often not worth the time or money, many companies turn to specialists for help.
The Solution
TecEx assumed all responsibilities by directly dealing with the Original Equipment Manufacturer (OEM) to manage the preparation and compliance for the shipment. Our extensive compliance knowledge and dedicated in-country team enabled us to advise on and source all necessary importation documents and permits required for the controlled items. TecEx also assisted with the BIS certification directly from the manufacturer.
Furthermore, we successfully navigated the impact of global supply chain issues and the semiconductor 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 to expedite the shipment and significantly reduce lead times.
The Outcome
TecEx readily stepped up to the challenge and navigated the complexities of this shipment with ease. 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 to Import to India?
Contact TecEx to help with importing tech gear into India and 200 other destinations. Our global presence, project management expertise, import compliance services, and logistics network enable us to provide a comprehensive, end-to-end solution for clients across the entire supply chain.
