Time Definite Imports to Jakarta, Indonesia

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Client Need

A global social media giant needed to urgently deliver IT hardware to their Jakarta office. After experiencing delays on past shipments, they were looking for a logistics partner that could provide a time-sensitive solution into the country. They also required an Importer of Record Service, as their local business entity was not a registered importer.

argentina services

  • Import Documentation Support
  • Direct Door-to-Door Shipping
  • Customs Clearance
  • Importer of Record Services
  • Last Mile Delivery

Background

Southeast Asia’s largest economy is one of the world most exciting emerging markets. A fast-growing young population with a financial system heavily backed by a pro-market central government makes Indonesia a golden opportunity for global businesses. As evidence, 2017 saw the largest net inflow of direct foreign investment in over 7 years. Importing goods into Indonesia requires an importer license. A business entity without an import license cannot import goods into the country. A business can either apply for an import license or utilize an Importer of Record service to import into the country.

The Plan and Execution

1) Direct Door-to-Door Shipping

Our client’s major concern was time. To accommodate the project timeline requirements, we planned the most effective route to minimize transport and customs clearance time. Upon arrival in Jakarta, the shipment was immediately lodged into customs.

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2) Importer of Record / Customs Clearance

FGX’s local team in Jakarta is a frequent importer and was able to clear shipment through customs in 30 days. Once cleared, contact was made with the end-user and the shipment
was delivered the following day.

customs support

The Results

By partnering with FGX, the IT equipment arrived ahead of schedule with little to no client involvement. Knowing that it is possible to effectively shipment IT infrastructure into their international offices put the client in position to strategically set up and refresh their global network to directly support their business. At FGX, we have seen that purchasing domestically and deploying IT hardware to international offices or data centers can save you time and money. To learn more about our “Buy Local – Ship Global” methodology, read our recent client success stories, or contact us today!

Technology Deployment Solutions for Argentina

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Client Need

A global provider of collaborative workspaces needed to deliver personal computing devices to their offices in Buenos Aires. They were under a tight deadline to provide new employees with an onboarding package including laptops, monitors, and accessories. They required a logistics partner experienced with Argentina’s import restrictions along with an Importer of Record service, as their local business entity was not a registered importer.

argentina services

  • Import Documentation Support
  • Direct Door-to-Door Shipping
  • Customs Clearance
  • Importer of Record Services
  • Last Mile Delivery
  • Local Procurement Support

Background

At the turn of the millennium, the Kirchner era’s “Make it in Argentina” protectionist policies closed the country off from much of the world’s economic activity. Importing electronics became a nightmare with high tariffs and strict regulation and compliance requirements. The election in 2017 saw a new regime promising free-market reform come to power. They have begun to reduce tariffs and regulations, but Argentina still remains highly regulated. These new economic developments have convinced some foreign entities to invest in Argentina once more.

The Plan and Execution

1) Import Documentation Support

FGX worked closely with local customs experts to obtain the documentation required to import electronics into Argentina well before the devices arrived at our transfer station. We managed all documentation on behalf of our client’s head office in the USA and local office in Buenos Aires.

document support

2) Gaining Importer / Device Type Approval

Imports of electronics need to be approved on both the product and importer level. This means even though a specific device was approved for import into Argentina in the past, each new importer must complete the approval process, which can take up to 90 days. To avoid this waiting period, electronics with external or removable power supplies can be imported (as long as the power component is removed).

power requirements

3) Direct Door-to-Door Shipping

FGX’s IAC status allows us to work with any major commercial or cargo airline. This shipment was booked on a flight from New York to Buenos Aires and arrived at the destination airport within 3 days. Upon arrival, the shipment was immediately lodged into the customs process.

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4) Importer of Record / Customs Clearance

FGX’s local team in Buenos Aires is highly experienced with importing consumer & enterprise grade electronics. Our local business entity is a frequent importer and was able to clear the shipment through customs in 5 working days. After clearance, the shipment was administratively transferred back to the end-user and delivered the following day.

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Difficulty Purchasing In-Market

The alternative to importing equipment with a partner like FGX is sourcing in-market. This process of procuring consumer & enterprise grade electronics locally in Argentina can be very difficult. Strict protectionist policies limit the number of technology resellers, causing the supply to be low and inventory to be dated. To further complicate matters, non-authentic items are common, resellers typically hold limited inventory and cannot fulfill enterprise orders on demand.

To make up for the missing inventory, once an order is placed, the vendors proceed to import the rest of the products needed, leading to lengthy delays. Local vendors may also not be fully transparent about their inventory up front, which makes in-market sourcing a non-optimal option when under a tight deadline.

The Results

By partnering with FGX, the client was able to purchase the exact equipment they needed in the US, and deploy it into Buenos Aires in 2 weeks. FGX removed the power supplies from the laptops & accessories to facilitate a smooth customs clearance process. We then procured the power supplies locally and delivered the completed onboarding packages to the client’s local office.

The client was ecstatic that their growing team had the tools they needed to support their rapidly expanding footprint across Argentina.

argentina plan and execution

What is Shadow IT and How to Eliminate it

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In order to meet the growing technology requirements of users and stakeholders, Shadow IT practices emerge as IT managers take it on themselves to procure hardware outside the direct funding or control of the CIO’s organization. Accepting this type of Shadow IT practice presents a direct threat to the CIO and the enterprise in several ways.

Three ways Shadow IT becomes a threat to the CIO and global enterprise:

1) Undermines High-Level IT Infrastructure Planning
When IT managers across the company start developing their own relationships with their local VARs, CIOs (or equivalent) lose control over the entire IT procurement process. IT managers that buy locally for their own needs fail to take into account how their purchases impact the broader enterprise. Without control of IT spend and the physical network, IT infrastructure planning becomes nearly impossible for the CIO.

2) Disrupts Global Enterprise Networks
IT managers will purchase different IT solutions for their specific needs. Without going through a centralized approval process, divergent hardware will enter the global enterprise network. Failing to control the devices entering the network, the CIO opens the enterprise up to potential security issues and system downtime triggered by unapproved hardware.

3) Results in Wasteful Technology Hardware Spending
A lack of coordinated purchases inevitably leads to wasteful spending across the global network. The stockpile of Shadow IT equipment becomes an inventory problem. Instead of creating value, the inventory sits on the balance sheet depreciating in value every day. The IT department ends up having to spend resources trying to re-purpose gear or they just eat the sunk cost.

Centralize Your Procurement Methodology

A business can switch to a centralized procurement methodology to decrease Shadow IT costs drastically. A central technology request system will provide IT managers with timely hardware solutions and allow the CIO to advance goals of the overall business.

Three ways a centralized procurement methodology helps defeat Shadow IT:

1) Aligns Local IT Hardware Needs with Strategic Infrastructure Planning
A centralized request system will decrease the cost of coordinating hardware deals with VARS and manufacturers. Instead of a chorus of voices, a central voice can coordinate critical IT infrastructure deals. This will allow the CIO to implement long-term strategic infrastructure planning that focuses on controlling costs and increasing network efficiency.

2) Builds a High-Performing Global Enterprise Network
Through a centralized procurement system, a company can purchase the necessary equipment from select VARS and manufacturers to boost network capabilities and eliminate disruption from Shadow IT. With control of the physical IT infrastructure, the CIO can strategically maneuver the network to effectively support their businesses around the world.

3) Decreases Overall IT Infrastructure Spend
By consolidating IT hardware requests, a company can take advantage of economies of scale and the deep discounts found in competitive VAR markets like the United States. The international markets where Shadow IT is purchased charges a premium for IT hardware. Bypassing the international markup and purchasing locally, then shipping globally, will save the enterprise money and eliminate Shadow IT.

Your Global Logistics Partner:

A centralized procurement method of purchasing domestically and deploying IT hardware to international offices and data centers is only possible with the right global technology logistics partner. Combining the deep discounts of domestic purchases with a trusted partner like FGX (providing door-to-door logistics and project management expertise) will save you valuable time and money.

To learn more about our “Buy Local – Ship Global” methodology, read our recent client success stories, or contact us at hello@fgx.com.

Gulf Cooperation Council (GCC) to Implement 5% Value-Added Tax (VAT)

Member states of the Gulf Cooperation Council (GCC) have enacted a Unified Agreement for VAT (Value-Added Tax). This agreement creates the framework for the implementation and operation of a VAT across all member states. It is up to each member state to implement the framework through legislation or other processes. Saudi Arabia and the UAE have been first to announce a VAT to take effect on January 1, 2018.

This will directly affect businesses importing goods into GCC countries. What does it mean for you and how can you prepare your business operations to be VAT ready?

What is Value-Added Tax (VAT):

Value-Added Tax is a consumption tax that is placed on the value that is added at each stage of the supply chain from production to the end consumer for a good or service. Instead of a sales tax that collects all consumption tax at the end of the supply chain, this tax is distributed along the whole supply chain.

VAT is used in many countries around the world, but is most commonly seen in the European Union (EU). The GCC VAT framework is most commonly compared to the EU.  

Example of VAT:
GCC VAT Example
When a server with a Total Import Value of $10,000 enters the UAE, a VAT of $500 (5% of $10,000) is levied to the UAE VAT Registered business. The $500 goes directly to the customs department upon arrival of the server.

Key Features of GCC VAT:

  • The VAT will apply to goods and services at a standard rate of 5%
  • VAT registration is mandatory for businesses or individuals with supplies exceeding SAR 375,000 in a 12 month period.
  • VAT registration is voluntary for businesses or individuals with supplies exceeding SAR 187,500 in a 12 month period.
  • VAT paid for imported goods can be reclaimed at the end of each tax period by registered members.  
  • Specific VAT tax compliance requirements (Tax groups, record keeping, tax periods and deadlines) will be left to each member state.

Paying VAT on Imports:

  • VAT-registered and unregistered businesses are required to pay VAT on imports to the Customs department upon arrival of goods.
  • If you are unable to prove a previous VAT payment from another GCC for a specific import you will have to repay the VAT.
  • The total taxable value of the imported goods is equal to the value of the goods plus:
    • Customs duties
    • Excise duties
    • Insurance duties
    • Freight duties
    • Any incidental services to import the goods
  • The Place of Supply, where the tax levied, for wired and wireless telecommunications and electronic services is determined by where the customer resides.

Why this matters to you:

The VAT presents a extra 5% upfront cost to anyone importing goods in GCC member states. This will be reflected in the pre-shipment payment businesses will pay logistics/import service providers to ensure DDP incoterms. It is important to remember this VAT is reclaimable with the proper registration and documentation when your company is the importer of record. With the corresponding import receipt, your accounting team can reclaim the 5% VAT paid during importing. When using a third-party importer of record service, VAT reclamation is not possible.

Businesses will need to be compliant with VAT registration and specific procedures. If your business exceeds mandatory and volunteer thresholds, you will need to become VAT registered by completing a Tax Registration application in 30 days of importing goods. Also, operations procedures and systems must be updated to follow record keeping and reports procedures to redeem VAT tax credits after each tax period.  

With the Gulf Cooperation Council VAT on the verge of being implemented it is critical for your business prepared all departments and upgrade systems asap.

Strategic Data Center Imports – Japan

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A value-added technology reseller of networking and data center cloud services needed to deliver IT hardware into a Data Center into Tokyo to increase their capacity in Japan. The client had some past experience in Japan but did not fully understand the import requirements associated with importing technology into the country. The client contacted FGX with the understanding that purchasing their equipment in the United Kingdom and shipping it into Japan was a more cost effective solution.

FGX’s Importer of Record service, along with our door-to-door IT hardware deployment solutions made FGX an ideal partner for the client. FGX collected the data center hardware in London and moved it to our designated UK transfer center. Once at our transfer center, we ran a full manifest check to ensure equipment accuracy. We also confirmed that the hardware met all import standards in Japan.

Next, we booked a direct flight from LHR to NRT with our airline partner. The shipment was on its way to Japan the next day. When the shipment arrived in Japan, FGX managed the Importer of Record process. We then arranged for customs clearance with all the required documents and authorizations. To import technology into Japan, the shipping documents must accurately reflect import requirements and the hardware must pass product testing standards. Paperwork is reviewed based on the Japanese Measurement Law. Any inaccuracy or contradiction in the import or product documents can lead to fines or delays.

The hardware must indicate it has passed product tests with a PSE label affixed. We worked directly with the manufacturer to procure the proper certificates showing technical approvals for all of the gear in the consolidation. Accounting for all import requirements and approvals, FGX was able to facilitate a seamless import of technical hardware into Japan with zero client involvement.

Partnering with FGX, the entire door-to-door IT deployment took about a week. FGX managed the entire approval process, enabling a smooth customs clearance. Our project management approach kept all stakeholders in the loop every step of the way.

FGX even handled the acquisition of the data center delivery ticket required to complete the final delivery. When procuring IT equipment for your next technical infrastructure project in Japan, or any other international market, consider a centralized procurement strategy. Combining the deep discounts of domestic purchases with a trusted partner like FGX (providing door-to-door logistics project management expertise) you will save valuable time and money.

Smarter Deployment Solutions to Jordan

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An international telecommunications company based in the UK was having problems buying through VARs in the Middle East. The client was looking for a logistics partner that could navigate Jordan’s stringent customs clearance process, as they wanted to buy their gear in places other than Jordan, and ship the gear in.

FGX’s local team picked up the equipment in London and transported it to our UK transfer station. Once at our facility, we ran a cross check to ensure that the equipment met all standards in Jordan. We also confirmed with both the manufacturer and UK government agency that the technical gear did not need a UK export license. After finalizing the paperwork, we booked a direct flight from LHR to AMM and the shipment was on its way to Amman the next day.

The client was not registered to import this type of equipment into Jordan, thus FGX managed an importer of record process on behalf of our client. While managing the customs clearance process we worked with the TRC (Telecommunication Regulatory Commission). We facilitated the TRC approval process for each telecom device with no involvement needed from the client.

FGX interfaced with both the manufacturer and TRC inspection agents, to present the proper customs documentation, commercial invoicing, and data-sheets, resulting in a prompt customs clearance. Once the shipment cleared, the gear was delivered to the client’s local office in Amman. Shipping from the UK to Jordan is difficult. FGX completed the London to Amman, door-to-door deployment, in 5 business days. This delivery time line impressed the client.

Please think of FGX when procuring IT equipment for your next technical infrastructure project in Jordan. You should also consider a centralized procurement and global deployment model in general. Combine the simplicity and discounts of centralized purchases with a trusted partner like FGX. When we provide post-sale deployment support, you will save valuable time and money.

What is an Importer of Record?

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Importing goods into international markets can be an arduous process. Succeeding is difficult for many companies. You must have familiarity with foreign laws, bureaucratic organizations, compliance requirements and more. Lacking a locally-registered business entity also makes success difficult. There are many moving parts that can prevent the successful import of goods. There’s nothing worse than your shipment being held or delayed in customs due to avoidable mistakes made along the way.

When faced with solving a complicated international logistics puzzle, you don’t have to go at it alone. Your logistics partner should be capable of managing all import/export requirements on your behalf. This will make a complex international deployment feel like a simple domestic shipment. An importer of record service is a key component to making this a reality. This useful, but often overlooked service, will resolve many of your issues.

What is an Importer of Record?

An importer of record, is an authorized person or entity that manages the responsibility for goods during an import. Put another way, an Importer of Record can enable a business to import into a country where they lack the ability to do so on their own.

The responsibility of an IOR, includes the proper management of the following tasks:

  • Detailed Documentation of Cargo/Goods
  • Accurate Declaration of Harmonized Tariff Codes
  • Timely Remittance of Duties & Taxes Payable
  • Compliance with local laws and regulations

To be an Importer of Record, the recipient of the shipment must be one of the following:

  • 1) A Registered Entity: A legal entity recognized by the local government holding a tax ID or equivalent registration number.
  • 2) Authorized to Import: When the entity owns a government-issued license and/ or permit to import into their country.

It’s important to note, different countries may have varying requirements and procedures. As an example: in Brazil, being a registered entity is only the beginning. You still need the proper import licenses, as well as a RADAR Registration.

Why would you need an Importer of Record?

  • If the business cannot legally import into a country.
    For many companies looking to expand, being a registered entity or having the authorization to import is not a reality. In this case, the Importer of Record can become the consignee allowing them to import the goods on the company’s behalf.
  • If the business does not have experience importing into a foreign country.
    Even in cases where the company does own a registered business, the company may not be familiar with the local regulations. Hiring an IOR can get rid of the headaches associated with customs clearance. 

Hiring an IOR is only one piece of the import process and typically doesn’t include customs brokerage, logistical handling, and delivery to the final destination. FGX handles the IOR and door-to-door logistics process ensuring your shipment arrives on time.

Integrating a trusted Importer of Record partner into your logistics solution can be a game-changer. By finding the confidence to ship into complicated destinations, businesses gain access to new global markets.

At FGX, we expand upon Import of Record Services to provide a full-service door-to-door solution. Our service is purpose-built to deliver technology hardware into all global markets. As a trusted partner, we walk our clients through the entire logistical & customs clearance process. If you’re supporting a global hardware infrastructure, we recommend procuring your IT equipment in the US; then exporting hardware to all of your international destinations.  This proven model helps lower costs while maintaining a high standard of service.

To learn more about IOR services, check out our global coverage map, read our recent client success stories, or contact us at hello@fgx.com.

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FGX’s IOR Service Procures KC Certificates On Your Behalf

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A technology service provider building up their capabilities in the APAC region required a logistics partner to deliver IT equipment into Seoul, South Korea. South Korea requires specific certifications to import technology hardware. This makes getting technical gear into the country difficult. Taking advantage of FGX’s expertise, the client decided to procure the equipment for South Korea in the USA, from their preferred VAR, enabling them to leverage their domestic purchasing power.

FGX’s Importer of Record service, along with our customs clearance and compliance expertise made FGX an ideal partner for this deployment. FGX shipped all of the gear from Texas to our transfer facility in New York City. Once received, we ran a manifest check to ensure all the equipment was accounted for. We also ensured the hardware met all import conformity standards in South Korea.

KC Certificates – To import technology properly into South Korea without penalties, a KC Certification must be presented with every device. Acting as a liaison, FGX interfaced directly with the manufacturer to procure the certificates by confirming every part number and product group in the shipment. Our attention
to detail allowed us to procure the necessary KC certifications issued by the Registration of Broadcasting & Communication Equipment in South Korea.

Next, a direct flight was booked from JFK to ICN with our airline partner. The shipment was on its way to Seoul, South Korea the next day. When the shipment arrived in South Korea, FGX managed the Importer of Record process. We arranged for customs clearance with all the necessary documentation and authorizations. With the KC certifications in-hand, the shipment was able to clear customs with ease, allowing our local team to deliver the technical equipment to our client’s local Seoul office. Using FGX as a partner, the entire door-to-door deployment took about a week. Coordinating directly with the manufacturing was critical for success. FGX produced the KC certificates on time, enabling a smooth customs process. Our project management approach required zero involvement on the client side. Please think of FGX when procuring IT equipment for your next technical infrastructure project in South Korea. You should also consider a centralized procurement and global deployment model in general. Combine the simplicity and discounts of domestic purchases with a trusted partner like FGX. When we provide post-sale support, you will save valuable time and money.

Zero End-User Involvement with IOR Services to Malaysia

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A global information technology and consulting provider rapidly building up their capabilities in Southeast Asian required a logistics partner to deliver IT equipment into Kuala Lumpur, Malaysia. Malaysia requires specific type-approvals to import technology hardware. This makes getting technical gear into the country difficult.

Taking advantage of FGX’s experience shipping into this lane, the client decided to procure the equipment for Malaysia in the USA, from their preferred domestic VAR. Centralizing their procurement in the USA resulted in a lower overall cost and shorter deployment time compared to buying in Malaysia. FGX’s Importer of Record service, along with our customs
clearance and compliance expertise made FGX an ideal partner for this deployment.

FGX shipped all of the gear from Chicago to our transfer facility in New York City. Once received, we ran a manifest check to ensure all the equipment was accounted for. We also ensured the hardware met all import conformity standards in Malaysia. Standards and Industrial Research Institute of Malaysia (SIRIM) – All communication technology (ICT) products being imported into Malaysia must be type-approved by the SIRIM, a government-owned company incorporated under the Ministry of Finance. It is important to note, the SIRIM only performs type-approvals for new products. Working directly with the manufacturer and SIRIM, FGX was able to obtain the technical paperwork needed to be granted customs approval to import the client’s products.

Next, a direct flight was booked from JFK to KUL with our airline partner. The shipment was on its way to Kuala Lumpur, Malaysia the next day. When the shipment arrived in Malaysia, FGX managed the Importer of Record process. We arranged for customs clearance with all the necessary documentation and approvals. With the ICT product type-approval and the corresponding SIRIM documents in-hand, the shipment was able to clear customs in 3-5 business days. Once cleared, our local team delivered the technical equipment to our clients local Kuala Lumpur office. Partnering with FGX, the entire door-to-door IT deployment took about a week. Coordinating directly with the manufacturer and SIRIM was critical for success. FGX managed the entire type approval process, enabling a smooth customs process. Our project management approach required zero involvement on the client side.

When procuring IT equipment for your next technical infrastructure project in Malaysia, or any other international market, consider a centralized procurement strategy. Combining the deep discounts of domestic purchases with a trusted partner like FGX (providing door-to-door logistics project management expertise) will save you valuable time and money.

Permit Support for Imports to Israel

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A global IT services company that recently went through a merger needed help to deliver hardware into Israel. The client had struggled to manage the strict Israeli import compliance standards post-merger. Unfortunately, these struggles resulted in delays and unhappy clients. FGX worked to make these issues go away. FGX’s suite of global deployment services made FGX an ideal solution for the client’s Israeli coverage.

FGX collected the hardware from Texas and transported it to our NYC transfer station. Once at our facility, we proceeded to run a full manifest check to ensure that all the equipment met the import standards in Israel. After confirming the paperwork, we booked a direct flight from JFK to TLV. The shipment was on its way to Israel the next day. Once the consignment arrived in Israel, FGX acted as the Importer of Record on behalf of our client. We arranged for customs clearance and completed all the necessary documentation. We then facilitated MOC (Ministry of Communications) and MOS (Ministry of Standards) approvals with no involvement needed by the client.

Depending on the circumstances, both of these applications usually take 5-7 business days. During the approval process, a query was raised against the device by the MOC. Thanks to FGX’s technical expertise and close relationship with the manufacturer, the concerns were quickly resolved. Once receiving the import permits, the shipment was released by customs. Allowing our local team to make the final delivery to our client’s local office.

Understanding Israel’s clearance and compliance requirements allowed FGX to succeed for our client. We delivered the deployment in 10 business days door-to-door. The client praised our ability to mitigate concerns and solve critical problems. This built the client’s confidence in shipping more of their technical gear from the US into international markets. Please think of FGX when procuring IT equipment for your next technical infrastructure project in Israel. You should also consider a centralized procurement and global deployment model in general. Combine the simplicity and discounts of domestic purchases with a trusted partner like FGX. When FGX provides post-sale support deployment, you will save valuable time and money.

We do not disclose our clients by design. After investigating if FGX is a good fit for your business, we would be happy to put you in touch with one of the clients we showcase.