So, you have been working hard to scale your business and the time has come to establish a branch of your company abroad and must import various IT equipment and have no idea how to go about the process. No worries.
Have you been working hard to scale your business and the time has come to establish a branch of your company abroad? In which case, you are most definitely thinking about importing various IT equipment and are unsure about how to go about the process.
What’s more, you have been running your data centre physically while renting rack space to clients abroad but now you need to ship some IT equipment to your client’s data centre. That is a lot to get around and process but worry no more.
What is an Importer of Record?
IOR (Importer of Record) bridges the gap between your shipment and the end user in a different country. Whether you are lacking international trade expertise, need help with compliance while importing or are not ready to bear the hassle of legal documentations, taxes and entities, IOR services have got you covered.
Most companies are unaware of the global supply chain logistics, which is understandable since every company has its area of expertise and so do IOR companies. An IOR or the Declarant, which it can be referred to is dedicated to ensure seamless movement of your shipment to destination.
As you may know, or may not know, moving items from your country to a different country is a complex process as it requires you to have a legal entity in the destination country to take care of custom clearance, payment of duties, fees and taxes, document processing, compliance with local laws and required documentations.
However, there is more to establishing a legal entity in the destination country, which is why you need the services of an importer of record. So, why does your business need IOR services?
The Benefits of IOR Services
There are various conditions that require you to partner with an IOR. Below we have listed the top five reasons why your business needs an IOR.
End user of your shipment doesn’t want to be an IOR
There are numerous reasons why the end user might not want to be an IOR. What if the company headquarters are in a different country from the receiving country? They may become a taxable asset to the receiving company, against the in-country entity.
Also, it is worth considering that the end user is a small company whose functionalities are international trade non-compliant or do not align with international trade requirements. In such a case, the company would face compliance issues and the goods may end up detained or seized.
In some cases, the end user may want the goods in a country that is different from his/her country of residence and doesn’t want to be involved in the global supply chain logistics. Sounds hectic, right? So, what do you do? It can only be prudent to seek the help of an external IOR provider.
In other cases, the end user simply wants to focus on their business without investing so much time and effort in following up with their import order. As discussed above, you know how hectic the process can be, right? Explaining what you are moving, the country of origin, the destination country and why the movement? All thanks to IOR.
You don’t specialise in international trade
Your company dealing with IT equipment doesn’t mean that you specialise in international trade as such. But what if it’s time to move part of your equipment to a new office location abroad?
Supposing you haven’t established a legal entity in the destination country, you need help in fulfilling the global supply chain requirements for a successful movement. Hence, an external IOR company will be invaluable in transportation, customs compliance and even installation in your new data center.
You don’t have the knowledge in trade compliance
Different countries have different compliance requirements, and some are too strict, challenging the importation process. You will want to know the permits or licensing required (if any), duties payable, submission of documentation to customs authorities and any related information required.
But what next after knowing the requirements? Processing of permits? How and when? The whole importation process can be daunting and if you do not have experience, the contact of knowing an external IOR would really help in instances like these. Even if you do it all, it may take too long and still fail to meet the requirements, leading to further delays.
Reputable IOR companies are dedicated to safe, cheaper and convenient importation and since they have the experience and capacity to comply with customs authorities, you can count on them for secure, compliant and reliable importation processes that you require.
You sell your goods on delivered duties (DDP) paid incoterms
You have been looking forward to closing on that sale and it’s time. The deal is closed, and you are responsible for all the international logistics. Although, one snag, your client doesn’t want to be involved in the whole process and you don’t own a legal entity in the destination country. Confused, much? Let us explain.
You need a third-party Declarant for the international fulfillment. You shouldn’t pour all your energy and sweat on only one client to only end up discouraged due to the expenses, time taken and even worse, unsuccessful importation.
Why not sell and leave the fulfillment to an IOR? Afterall, a profit is the reason you are pitching your ideas beyond your country of residence. If you can’t count on a profit for your international clients, then it’s not worth it.
You need technical help for your IT equipment
Suppose you are moving your equipment to a new data centre abroad, but you don’t have staff based in the destination country. Apart from the customs compliance, taxes, duties, and paperwork, you want to ensure your equipment is safely transported and installed.
You must not employ staff abruptly as you need a budget for that. A solution would be while you are settling your new data centre, an external IOR can help with the transportation and installation of your equipment. They will also ensure that all the technical requirements in the destination country are met for compliance.
In addition to the above, if any permits are needed, they can also take care of that too. You don’t want to encounter compliance issues after you have installed your equipment and are already moving part of your staff to your new data centre.
Note: Not all global supply chain fulfillment companies have the technical expertise for installation of your IT equipment, even support. However, some IOR companies such as Blackthorne IT have gone the extra mile to support IT equipment importation, installation, and support.
How Blackthorne IT’s IOR services can help your business
Blackthorne IT has been providing Importer of Record (IOR) services for over 20 years. We have the experience and knowledge within our diverse team in seeking information concerning your DDP shipment with the customs authorities, payment of duties and taxes and filing documentation and paperwork.
Having established a legal entity in over 200 countries, Blackthorne IT can represent your business in the destination country and easily acquire the licenses that you may need. What’s more, we allow you to use our existing company licenses as a consignee for your shipment, making your life easier.
Why Blackthorne IT is your go-to international IOR services provider:
· Technical Importation and Global Logistics Expertise
Blackthorne IT’s Cisco-certified technical team is globally distributed to ensure a safe importation, installation, license renewal, repairs, maintenance and support for your IT equipment, on-site and online, a service that most IOR companies do not offer. We are here to support you with the whole global IOR solution.
· A Wide Range of Logistics and Global Supply Chain Services
Besides IOR, Blackthorne also offers Exporter of Record (EOR) and can also offer entity representation in almost every destination country of your goods.
· Duty Payment, Taxes, and Fees
Don’t worry, you don’t have to be involved. We take care of them all.
· Compliance
Blackthorne’s experience guarantees a simple and transparent customs clearance. All the documentation is well taken care of for the minimum expected duration, and you can always have it when needed.
· Credible and Industry Relevant Accreditation
Blackthorne holds numerous accreditations, offering credibility for our services making it easy to process required documentation for your shipment and giving you peace of mind, we are the IOR provider for your business in 2023 and onwards.
If you are interested in Blackthorne IT’s Importer of Record services or related supply chain and logistic services, we are only a message away. We look forward to hearing from you.
