How TecEx Supported a Tech Giant’s Global Rollout with a Cross-Border IOR Solution.
Reading Time: 4 minutes
Shipment value: Over $6.8 Million
Number of Destinations: 27
Products Shipped: Racks and Servers
TecEx, The Safe Choice for a Global Tech Giant.
The key to success in business is to find the sweet spot between taking risks and playing it safe. For many top companies, this means reallocating risky parts of their supply chain, even if they have the skills and resources to do it themselves. This allows them to focus on their core competencies and reduce their overall risk exposure.
This was precisely the case with our client, a large multinational digital infrastructure company with data centers located across the globe. Boasting an extensive reach and physical presence in each of their locations, they were to act as their own Importer of Record (IOR) for shipments containing new hardware.
Being listed as the importer for any goods is a risky proposition. But, when it comes to tech equipment, more specifically, data center networking equipment, the risks are even greater. This is because these products are highly regulated due to their propensity toward being “dual-use.”
Dual-use refers to goods that can be used for both civilian and military purposes. This makes them a target for both legitimate and illegitimate actors. As a result, importers of tech equipment must be aware of the risks and are subject to several additional procedural requirements for import and export.
In the end, our client decided that the reward of partnering with TecEx outweighed the risk. They knew that TecEx would be able to handle their imports with the utmost care and expertise. This gave them the peace of mind to focus on their core business activities.
The Challenge
Due to the risk dual-use hardware poses to a country’s network and to the very safety of its people, tech hardware is frequently more heavily scrutinized during the customs process.
Consequently, when acting as the Importer of Record (IOR), this entity is held responsible for ensuring all the local laws and requirements are met and all duties and taxes are paid. This includes being responsible all the correct licenses and permits for the specific goods. Which, along with the duties and taxes, are based on HS code classifications.
Dual-use goods are a minefield of compliance requirements. If you make a mistake, the consequences can be severe. Even if you don’t mean to do anything wrong, importing dual-use goods can have serious consequences. And the smallest mistake can lead to grave legal, financial, and audit implications.
Additionally, customs offices require the IOR to keep a record of their imports for audit purposes for a period of up to seven years after the shipment has been cleared. Not only are these audits an administrative nightmare, but they come with severe financial and legal repercussions when documentation is missing or incorrectly filed.
The Solution
The benefits of keeping something as complex and high-risk as import compliance and IOR duties in-house are limited, as our client came to realize.
Although keeping these duties in-house would afford you a little more control over the import process unless handling imports is a fundamental aspect of your business model, the safest option is to hand off these responsibilities to a specialist.
This way, you can be certain your import team is fully equipped to meet the challenges. TecEx, as an IOR and customs compliance specialist, offers businesses peace of mind and risk-free international shipping into almost any country in the world.
The Outcome
Having weighed up their options, our client decided that they did not want to play any part in the overall import process. They placed complete responsibility for all their shipments in TecEx’s capable hands, taking full advantage of our DDP solution.
TecEx readily stepped up to the challenge, coordinating all the moving parts for multiple shipments. We handled everything from initial pickup to final delivery and all customs compliance, seamlessly integrating with and managing the client’s preferred logistics provider.
Impressed with our efficient delivery times and reliability, the company placed even more responsibility in our hands, requesting that we assist in managing their reseller partners going forward.
By reallocating their international logistics services and IOR needs to TecEx, our client enjoys a risk-free import solution on all their shipments. They also effectively streamlined the administrative process for their procurement team and opened opportunities for central procurement. Doing so left the company more time to focus on what they do best and has resulted in them generating additional revenue.
The TecEx Way
At TecEx, we pride ourselves on our ability to develop bespoke solutions to resolve even the most unique pain points.
Why not contact our expert team to see how we can help you streamline your cross-border shipments?
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.