Data centres have become critical considerations for almost every organization looking for unlimited storage and secure hosting services. It’s no longer the age when businesses built large premises for storing files and paperwork.
With the growing cloud technologies solutions and technologies such as artificial intelligence and machine learning, data centres remain invaluable. However, building, managing, and maintaining a data centre relies on hardware technologies.
You need equipment such as firewalls, large servers, switches, and routers imported to your data centre location. But, must you import?
The truth is, importing opens you to a larger market and allows you to acquire quality equipment at a lower cost. Besides, if you want to establish a data centre abroad, you need to ship IT equipment to the new location.
Importing IT equipment calls for expertise and a wealth of experience. This is because of the complex import procedures and licensing requirements for highly restricted IT equipment. And this is where an importer of record comes into play.
This article discusses how the importer of record (IOR) can help ship IT equipment to your data centre.
When IOR is essential in importing IT hardware
Importing IT hardware could mean you are the hardware manufacturer or supplier importing equipment to a data centre. It could also mean you have a global footprint with your data hosted in various colocation data centres.
Whichever category you belong to, there are circumstances under which a third-party importer of record is the only solution for your shipment. Let’s look at three critical circumstances:
You are utilising colocated data centre facilities
A colocated data centre facility can be used in two ways.
First, it could mean you are utilizing data centre equipment from varied companies in a single housing.
Second, it implies you have your data centre equipment in several colocation data centres.
The latter means you could be in the UK, and want to establish another data centre in the US, of which you want to ship some of your equipment, say servers, into the new data centre.
Moving your IT equipment can be costly if you must budget for new staff, transport arrangements, deployments, and maintenance. In such a situation, the services of an importer of record become invaluable.
The importer of record (IOR) can help you arrange transportation, ensure compliance, help with clearance, and offer entity representation in the destination country.
You are not permitted to import
Data centre equipment is one of the highly restricted technologies. You must present relevant accreditations and licences to authorize your shipment to import the equipment.
If you do not possess the relevant accreditations and licenses, the importer of record can use their accreditation to authorise your shipment.
You do not want to be the importer of record
Sometimes, you are not willing to be the importer of record. And that is one of the circumstances we discussed in the article, why your business needs an importer of record.
So, an IOR would be invaluable if you are unavailable to handle the import requirements or do not want to bear the hassle of fulfilling the requirements.
Challenges in importing IT equipment to data centres
Generally, equipment in the IT infrastructure category is electronic, of high value, and highly regulated. These three attributes alone render the compliance procedures complex.
Additionally, only a few companies handle the entire IT equipment importing supply chain. Some lack streamlined logistics management, and others lack a specialised IT team to move the IT infrastructure across borders safely.
Such challenges contribute to missing paperwork, importers being unable to respond to critical concerns, and delayed customs clearance and deliveries.
Other challenges that importers face when shipping IT hardware to data centres include the following:
Unavailability of staff to complete paperwork
Most data centres are managed remotely. Having a data centre abroad with no staff residing onsite is not uncommon. After all, you can manage your data centre remotely.
So, what happens when you want to import IT equipment to your data centre abroad with no staff residing in the destination?
Such a scenario is challenging as you need an entity in the destination country that is aware of the customs clearance requirements and procedures. The unavailability of staff onsite to fulfill paperwork requirements can delay your shipment.
No registered entity to work as IOR
Almost all import destinations require that you have an entity registered locally for hassle-free trading of imported goods and payment of duties and taxes.
If you have not established your local presence, selling your equipment once imported can be challenging. And what is the essence of a business that can’t sell to your target market freely?
Besides, registering an entity allows you to settle your duties and taxes, failure to which you are eligible for penalties.
Complex procedures for restricted technology
As earlier mentioned, IT equipment is highly restricted. You must identify the importation requirements, including licenses, to authorize your shipment before initiating the import transaction.
You want to identify quality and quantity restrictions and import licenses for restricted technologies, such as encryption-related technologies.
And if your data centre is not a registered entity, following up with the trade compliance procedures makes it even more challenging.
How IOR can help import data centre IT equipment
Looking at the challenges facing the importation of IT hardware to data centres, moving your IT equipment across borders can be almost impossible. Thanks to importers of record for alleviating the intricacies of importing technology.
Here are the seven ways an importer of record (IOR) can help in importing equipment to your data centre overseas:
#1 Seamless customs clearance
HS classification is one of the most challenging customs clearance procedures. This is because the exercise demands a high level of accuracy to ensure goods are correctly valued and duties and taxes estimated.
A slight error in the classification of your shipment implies delayed shipment, seizure of the goods, or penalties. That is the last thing you want for your shipment.
Experienced importers of record ensure:
- Your shipment is assigned the correct classification code
- Accurate valuation of the products
- Accurate estimation of the duties and taxes
- Identification of required licenses (if any)
- Acquisition of the licenses
- Submission of all relevant paperwork
- Timely customs clearance for the transportation of your equipment
#2 Ensuring compliance and risk mitigation
Compliance doesn’t end at the submission of relevant licenses and paperwork. What questions arise at the border, such as discrepancies in HS classification or a new regulation being introduced on short notice?
These are some of the risks importers of record bear on your behalf. They ensure you remain compliant with local and international regulations and stay updated in case of any changes to regulations for immediate action.
Also, in case of any questions concerning your equipment, the IOR bears the resolution burden to ensure a successful importation.
We previously discussed customs clearance in the tech industry. You may want to check it out to learn more about ICT standards and the leading customs compliance issues in the tech industry.
#3 Door-to-door logistics management
So you found a means to import to your new data centre abroad but are worried about how the equipment will finally get onsite? You can transfer that responsibility to an IOR.
Established IORs such as Blackthorne offer full-stack logistics management. They ensure your equipment moves safely from the importer’s hands to the buyer’s doorstep.
We offer delivery to data centres, even to the most remote locations around the Asia Pacific Rim. Yours is to prepare a Bill of Materials (BOM), and our smart hands will do the job for you.
#4 Legal entity representation
If you don’t have staff onsite for your data centre, you don’t need to recruit one to import equipment. IORs who have already established their entity in the destination country can represent you to ensure a safe yet low-cost importation.
Note: Blackthorne has a registered entity in over 220 import destinations. That means we can represent you in almost all import destinations with minimal intervention from your end.
#5 Technology importation consultancy
Come to think of this. The lack of resources is not why you have been postponing expanding to the global market. A little bit of clarity could be the only solution you need, and your data centre overseas takes off. How’s that possible?
Our specialization in operating within “difficult” markets and track record of maximising commercial benefits are part of what we call the Blackthorne Advantage. We help you mitigate risks and ensure your profit margins remain uncompromised.
Conclusion
The reasons why you need IOR services when importing into a data centre overseas are innumerable.
An IOR can help move your equipment safely to your desired destinations, from arranging transportation to ensuring compliance with regulations to customs clearance.
And if you find an established IOR, such as Blackthorne, who can handle the importation, installation, and IT support, you cut on operational costs and stretch your profit margins.
Hence, if you operate within challenging environments and your commercial benefits are at stake, you only need to get in touch.
