October 30, 2020

TecEx manages a temporary import process, helping our client showcase their product cost-effectively

When it comes to complex cross-border shipping of high-value IT equipment, there is no such thing as a one-size-fits-all solution. Each case has its own complexities, which is why our in-depth knowledge of the relevant legislation and processes, and our extensive experience, are so important.

That said, most clients have a reasonably straightforward objective: they need equipment shipped safely to a specified location at a specified time.

This specific case was unusual because it involved an element of uncertainty. Our client was sending equipment to a second country on spec, with the possibility that the equipment would have to be returned to the country of origin.

We tailored a solution that enabled our client to market its products cost-effectively, in full compliance with all regulations.

PROOF OF CONCEPT

Our client is the manufacturer of a proprietary product. They planned to ship their product to a company based in Europe for that company to test the product over a specified time period.

Upon the completion of the specified period, the company would then either choose to purchase the system or the equipment would need to be shipped back to the country of origin.

Our client therefore had two atypical requirements. First, they wanted to ship the equipment without paying taxes and duties upfront. Second, they required a protocol to be in place that would enable the equipment to be shipped back, should that prove necessary.

TecEx was able to arrange tax and duty-free temporary import using a specialized permit. Just as important, from our client’s perspective, TecEx planned, implemented and managed the entire process on their behalf, ensuring they could remain focused on their day-to-day operations.

The certificate, which permits duty-free import for a specified time period, introduced two complexities:

1 An entity now had to stand for the full value of the duties and taxes which would ordinarily be paid immediately on arrival, and which would become due if the shipment remained in the country beyond the specified time period. TecEx managed this on behalf of the client.

2 The permit had to be sourced and accurately completed. There were also additional hard-copy customs documents that needed to be provided to the freight company. TecEx managed the entire administrative process seamlessly.

It’s important to note that managing regulatory requirements wasn’t just a question of efficiency. Even unintended non-compliance risked significant penalties, which could have proven prohibitively costly to our client. TecEx worked tirelessly to eliminate this possibility.

A COST-EFFECTIVE SOLUTION FOR TEMPORARY IMPORTS

In the case under discussion, TecEx managed shipping to ensure the goods cleared customs in the destination country with no problems.

Instead of having to make a significant upfront payment, our client paid a minor percentage of the duties and taxes per month for the duration that the goods remained in the country: a fraction of the full importation cost.

TecEx was able to ensure maximum flexibility for our client. If the third party chose to purchase our client’s system, customs would need to be notified and the outstanding duties and taxes would need to be paid. Alternatively, if the equipment needed to be returned to the source country, TecEx was on standby to ship the goods out of the country and manage the safe and efficient return of the equipment.

A FLEXIBLE SOLUTION FOR SALES, DEMOS AND TRADE FAIRS

In a globalized economy, businesses frequently need to deploy goods in a variety of international markets.

Ideally, a business does not want to be constrained by prohibitive import costs for what may only be a temporary import.

TecEx provides a simple and effective solution, eliminating the burden of upfront import costs, while providing the flexibility to manage all outcomes.

This protocol is ideal for cases where there is uncertainty about whether equipment is to be designated for permanent import. It is also an optimal solution for trade fairs, which would often be uneconomical if full import taxes and duties had to be paid.

Only TecEx has the ability to seamlessly manage all of the elements of such a complex transaction. That means peace of mind for our clients. It also means they can initiate a multilayered, highly complex shipment with one point of contact and one consolidated invoice.