Shipping Electronics Internationally: A Guide for Businesses

Electronics and IT equipment are high-value items tightly regulated by customs authorities worldwide, making international shipping a complex process for businesses.

Failure to handle electronics shipping effectively can result in unplanned costs, such as fees, duties and taxes, unpredictable timelines, potential delays, and worst of all, stuck shipments.

In this post, we explore three key aspects of shipping electronics internationally:

• Packing electronics for shipment: For new equipment shipped directly from a manufacturer, using the original packaging is usually sufficient. However, we recommend a thorough pre-inspection of IT equipment before shipping. At FGX, we run a detailed manifest for our clients and sometimes encounter damaged or mis-marked electronics from the original equipment manufacturer (OEM). For used or exposed electronics, secure packaging in compliance with local regulations is crucial to avoid damage or penalties by customs in the destination country.

• Choosing the transportation method: Decide whether to use a hub-and-spoke courier, air freight, ocean freight, etc. You’ll also want to consider whether palletizing your shipment is necessary, based on its value, and ensure you have appropriate insurance coverage for potential issues.

• Exporting and importing electronics: This step varies depending on your bill of materials and shipping origin and destination. Ensure that your paperwork is accurate, including listing the correct HS codes for your electronics and supplying an ECCN number if needed.

Navigating these aspects can be confusing, and online resources are often lacking. Shipping companies, such as freight forwarders or couriers, may not offer adequate support. Incorrect information can lead to delays, extra costs, and potentially refused deliveries.

In our experience, multinational enterprise businesses succeed by investing in additional capacity or technical expertise to effectively navigate international shipping for their electronics. 

Many multinational enterprises trust our team at FGX to deliver seamless, best-in-class global IT shipping solutions for their infrastructure. We provide coverage to 174 countries with a 99.98% customs clearance and delivery success rate, even to challenging countries like Brazil and China. 

Please reach out to learn more, or continue reading for an overview of shipping electronics internationally.

Shipping Electronics Internationally: Packing & Shipping Methods

Packing Electronics for International Shipment

Often when businesses are shipping electronics internationally, they’re buying products directly from a VAR or IT Reseller. These are new items from the manufacturer, so the thinking is that these goods are already properly packaged. 

And that’s generally true. For example, here’s a server box shipped to FGX directly from the OEM:

Good to go as it is. But this isn’t always the case. Every now and then, items arrive at our shipping centers in a damaged state, as you can see below:

This is one of the reasons why a pre-inspection of your goods before shipping is critical. At FGX, we take shipments and run them through our FGX Manifest service, which involves:

• Detailed Inspection: We verify that the correct items are being shipped and that they are properly and securely packed.

• Customs Pre-check: Because we’re working with international shipments, we identify potential customs issues related to the electronic devices and proper packaging before shipping. In contrast, shipping services like UPS and FedEx don’t do this pre-inspection. Instead, they’ll just ship the goods, even if they’re damaged and even if they’re not going to clear customs.

If we find issues with your shipment, we’ll inform you before working to arrange replacements, saving you time and money by preventing the receipt of damaged or incorrect items.

How to Pack Used or Exposed Electronics

Sometimes our clients need to move used electronic items in bulk from one country to another, like from an old office in San Francisco to a new one in London.

Handling used equipment requires extra care as the items are exposed and lack original packaging. Many businesses can’t invest the time or resources for proper re-packing, which can easily lead to damage or loss.

To address this, we start by requesting photos of the equipment to assess requirements. When the items arrive at the FGX warehouse, our team inspects each piece, creates a detailed manifest, and securely packs the items. 

For high-value used electronics, we do custom crating at an FGX or partner warehouse. 

We take the electronics and place them securely on a pallet with a styrofoam-stabilizing foundation. Each item is wrapped in anti-static bubble wrap cushioning to protect against static discharge during transit. 

If needed, we also use foam inserts or packing peanuts to fill any gaps in the box, ensuring the items do not move during transit. Once secured, we build a custom crate around the pallet.

We clearly label the package with handling instructions, such as “Fragile” or “This Side Up,” to inform handlers of the care required for fragile items.

This method ensures the equipment is stable, has extra protection from damage, and is safe from static electricity, resulting in a secure and reliable shipment.

Choosing the Best Shipping Method: Hub-and-Spoke Couriers vs. Direct Freight

When shipping electronics to another country, businesses often consider using hub-and-spoke couriers, such as FedEx, UPS, and DHL. At first glance, this makes sense. These couriers collect shipments from various locations in their extensive global networks, consolidate them at a central hub, and then redistribute them to their final destinations.

The hub-and-spoke model is highly effective for certain types of deliveries. However, in our experience, it’s a suboptimal solution for businesses that need to ship electronics internationally. This is due to three primary reasons: 

1. Non-dedicated transportation vehicles: In the hub-and-spoke model, your valuable electronics shipment becomes part of a larger freight mix. Couriers pick up and move your shipment through multiple hubs until it reaches its final destination. It will be transported alongside a multitude of other items, ranging from food and alcohol to medical and sports equipment.
   
   This increases the risk of inappropriate stacking, potentially causing damage to your electronics. With multiple transfers involved — loading and unloading from trucks, storage in warehouses, and handling by various personnel — each transfer point increases the risk of loss, misplacement, or damage to your shipment.

2. No single point of contact: Due to the complex supply chain inherent in the hub-and-spoke model, these services typically cannot provide a single point of contact. This can make it difficult, if not impossible, to track your shipment while it’s in transit. If you need support, you’re often left calling a general hotline, which may leave you on hold and rarely provides the assistance you need. It’s not uncommon for businesses to lose sight of their IT equipment once it leaves the origin country, only to be notified when it finally arrives.
   
   Furthermore, while hub-and-spoke delivery models are generally fast, they can be surprisingly slow for IT equipment. A company using this model might get your IT equipment to the destination port quickly, but your shipment could get stuck in customs. When this happens, it’s incredibly difficult for your business to work with customs to clear the shipment.

3. No pre-inspection process: While the hub-and-spoke system doesn’t inherently exclude a pre-inspection process, the vast majority of international couriers using this model (such as DHL, FedEx, etc.) don’t offer any form of pre-inspection. This lack of a pre-inspection process can further increase the risk of damage or delays.

Direct Freight: A Better Solution for Shipping Electronics Internationally

At FGX, we prefer to ship our clients’ orders via direct freight, exclusively choosing air freight over sea freight.

By shipping direct air freight, we:

• Ensure your electronics avoid bouncing between multiple hubs, taking the most direct path to their destination. This minimizes the risk of loss and damage.

• Provide clear and transparent updates on your shipment’s location during the international transit stage. Combined with our expertise in clearing customs, this allows us to offer specific and precise delivery windows.

To recap, FGX manages all aspects of the logistics process, from pickup to delivery, including customs clearance and compliance with international regulations. This approach ensures high security, efficiency, and cost-effectiveness, particularly for sensitive or expensive electronics shipments.

Our expertise in global IT logistics minimizes risks, shortens transit times, and offers greater visibility and control over the shipment process. FGX is the ideal logistics partner for businesses needing a reliable and specialized solution for shipping electronics equipment globally.

Exporting and Importing Your Shipment in Compliance and with Efficiency

Often, online resources about shipping electronics focus exclusively on packing — a crucial step, but by far the easiest part of sending electronics internationally. The real complexity lies in successfully and strategically exporting your shipment from its origin country and importing it into its target country, all while keeping your business’s best interests in mind.

Below, we provide high-level guidance on shipping your electronics internationally. While these are just some considerations, our goal is to give you an idea of the level of detail required to navigate cross-border shipments of IT equipment.

1. Ensure Your Package is Eligible for Shipping to Your Target Country

Owning electronic goods in the U.S. doesn’t guarantee they can be shipped to countries like India, Brazil, or Vietnam.

Some countries enforce strict brand protection laws, preventing unauthorized imports of brands like Apple. Others, like India, impose stringent regulations on importing used electronics, making it more cost-effective to ship only newly purchased electronics.

Understanding these regulations can save time and money. At FGX, we perform Feasibility Checks before booking to ensure your shipment will clear customs, unlike many logistics companies that only notify you of issues at the last moment.

2. Choose an Importer of Record (IOR)

The Importer of Record (IOR) is the business entity listed on the import documentation of your shipment. This role is crucial for customs clearance, as customs officials need to know who is responsible for the goods, their eligibility to import, and their import history.

If your business has a legal entity in the destination country, you may be eligible to act as your own IOR. Without a local entity, you can use IOR services, though this may result in missing out on reclaimable taxes such as VAT and GST.

At FGX, we provide IOR services and evaluate whether your company can act as its own IOR, helping you reduce import fees and reclaim taxes. Even when FGX acts as the IOR, we handle all documentation, licensing, and customs clearance responsibilities, ensuring you reap the benefits without the headaches.

3. Consider Import Duties and Taxes

The Harmonized System (HS) is a standardized method for classifying traded products, used by customs authorities to assess duties and taxes. Although the World Customs Organization (WCO) manages the HS system, HS codes can vary between countries..

Your shipment’s bill of materials must be classified into HS codes, each with applicable duties and taxes based on the destination. Certain HS codes may also trigger permit and license requirements, so choosing the correct HS code is crucial. However, identifying the correct code can be challenging, as there is often ambiguity around which code best corresponds to each item. Choosing the wrong code can lead to issues with customs, including higher duty payments or shipment rejection.

With our experience in shipping tens of thousands of IT shipments internationally, FGX can accurately identify the optimal HS codes for your bill of materials, ensuring compliance and cost optimization. This can save you 10% to 15% or more in duties. As global IT logistics experts, we help you avoid ambiguities and select the correct codes, reducing shipping costs and preventing customs issues.

4. Provide Shipping Insurance Certificates

Depending on the type of electronic equipment you’re shipping, customs may require proof of sufficient insurance coverage.

A shipping insurance certificate demonstrates that your shipment is insured for its value, ensuring compliance with international shipping regulations and protecting your investment against potential losses or damages during transit.

5. File Your Shipment Through AES (If Required)

The Automated Export System (AES) is an American system for collecting, processing, and storing Electronic Export Information (EEI) for entities exporting goods from the United States, Puerto Rico, or the Virgin Islands.

If your shipment's total value exceeds $2,500 or includes “controlled products,” you must file an EEI with the AES and obtain an Internal Transaction Number (ITN).

To determine if you need to file, consider:

• Is the shipment value over $2,500?

• Are the items classified as controlled products?

Controlled products may require a license (e.g., an ECCN) or exemption. If neither condition applies, you can proceed without filing.

An Export Control Classification Number (ECCN) is required for many encrypted devices due to their potential misuse by bad actors. The need for a license depends on the ECCN, destination, and intended use. To obtain an ECCN:

• Request it from the manufacturer: Contact the equipment manufacturer for the ECCN.

• Access FGX’s expertise: If you don’t have the ECCN on hand, FGX can assist in finding and applying the appropriate ECCN for your shipment. With our extensive database of IT hardware SKUs, we can quickly classify your devices and ensure compliance.

6. Be Ready to Respond to and Resolve Any Hold-ups in Customs

If any issues arise during customs clearance, you must work directly with customs officials to provide the necessary information or documentation. This requires understanding international commercial terms (Incoterms) and the specific import regulations of the destination country.

For many companies, handling these complexities is outside their team’s expertise, which can deter them from shipping their electronics equipment. However, shipping remains the most cost-effective and efficient method for distributing IT electronics, allowing precise planning of shipment arrival times and more.

How FGX Can Help Your Business Ship Electronics Internationally

Above, we provided a general overview of shipping electronics internationally, covering:

• Proper packing techniques and the importance of pre-shipment inspections

• Different shipping methods (hub-and-spoke vs direct freight)

• The challenges of exporting and importing electronics

We also discussed how FGX supports businesses in shipping their electronics internationally,  taking an integrated approach to meet your unique shipping needs. Unlike typical freight forwarders or couriers, we don’t just move your goods from one country to another. We assess what you’re shipping, its origin and destination, and future shipments to create a custom, cost-effective solution tailored to your company’s specific requirements.

When multinational enterprises work with FGX, they gain access to a seamless, best-in-class global IT shipping experience for their IT hardware. If you’re interested in learning more, please reach out to us.