Importing provides challenges in every country; some are way more challenging than others. Underdeveloped countries tend to be the most difficulty getting goods cleared in a reasonable timeframe. We will explore three of the most difficult import destinations in this current climate.
Global trade occurs 24/7 365 with no limit on the products being shipped. Much of this is domestic but increasingly finding new markets is critical for growth and survival. This is when new companies to international trade discover the import challenges. Traditional trading partners have established processes that many companies have adopted a system for over the years. Newer emerging markets and countries with more difficult administrative processes are where the real challenge begins. So why is importing in these countries so different? What are the challenges an importer of record (IOR) faces in these countries? Is it the global trade compliance regulations? Each country is on a case by cases basis; some countries have strict compliance rules, while others charge too much duty and tax on imports. Social and political factors are also among the many hurdles to overcome, and combining all these makes it a steep challenge.
Apart from the points discussed above, the challenges for the Tech and Telecom industry are highly compounded by additional regulations worldwide. There are multiple reasons why the tech industry is so heavily regulated around the globe.
One main reason is that a large variety of tech products are considered dual-use. Another key challenge is the complexity of trade compliance when shipping goods between borders. Countries with difficult import lanes are commonly ladened with intensive compliance regulations. Certificate of origin, product permits, permits for use of sell, test reports, and even contracts between sellers and buyers are some of the challenging hurdles that exporters may face when importing to these democratic countries.
Duties and taxes are other factors that create a challenge in importing to these countries. In many countries, the tax structure is designed to disincentivize imports to encourage local production of these same products. This type of political, economic, and legal agenda can make importing very difficult. Some countries don’t have foreign trade agreements while others have international trade embargos.
Below are three of the most difficult importing destinations and some thoughts on what is needed before initiating imports into these countries.
Russia
Russia is a big country spanning 11 time zones and its sheer expanse is one of the leading factors in trade constraints. Import compliance regulations are also strict and time-consuming. In addition, the political situation, language barrier, and lack of transparency make Russia one of the most difficult import destinations.
Shipments with commercial and electronic goods are commonly the most complex to import. There is a long list of restricted items which include some of the major IT brands like Cisco. Import compliance in advance is a must when you are importing into Russia. If the importer has failed to complete any of the confusing paperwork or missed any item it will result in delays in customs processing and expensive penalties.
With such restrictions, popular brands like HP, Cisco, and Apple will have impediments to import compounded by confusing regulations; Russia is on the top of the list. Only a handful of importers and IOR providers have the ability to import into Russia. AGOL Worldwide is among those few who have been delivering exclusive service to its customer as an IOR provider in Russia.
Saudi Arabia
For many reasons, Saudi Arabia has made it to the list of challenging import destinations. Compliance is one of the major reasons due to strict government policies and a need to keep a record of everything going in and out of the country. Apart from the general import procedures and customs clearance process, pre-import compliance is a lengthy process and can span up to several weeks.
Products are initially categorized as either regulated or nonregulated. All regulated products are further segmented towards a specific authority that is regulating their import and sales in the country. All regulated products need product registration and may also be subject to further certification like CITC, and IECEE depending on the category they fall under; your IOR provider will need these certifications.
Apart from general documentation, the certification and registration authorities demand pictures of the products. A certificate of origin is also needed which should be attested by the local chamber of commerce in the country of origin. Political factors such as Arab League Boycotts also can add to the difficulty in the import process. Despite all these factors AGOL Worldwide has been providing IOR service in Saudi Arabia for the past few years.
India
India is also amongst the most difficult countries to import; specifically when importing IT and telecom goods. Pre-compliance holds a major part of the import process, and fulfilling the import compliance is a lengthy process. Shipping on a large scale into India is much more difficult. IT and telecom goods are subject to strict compliance regulations.
When dealing with such a lengthy process of compliance adherence, chances for errors are high and in India, this can lead to high-value penalties or seizure of goods. This not only costs more money but the loss of productivity without that critical part is the real cost. Improper compliance often occurs by importers with little to no experience resulting in delays and substantial financial penalties.
Since India manufactures many IT and Telecom products locally, there are policies in place to protect local industry and manufacturers. This protectionism contributes to why import taxes and duties are comparatively high. Every product is subject to a strict market price check which makes it very difficult for the importer to assess the value of import duties and taxes.
Conclusion
In conclusion, partnering up with the right IOR and Logistical Partner is a very critical decision. Your IOR partner should be a compliance specialist and must know the ins and outs of customs regulations for any country; especially the challenging countries discussed here. At AGOL Worldwide we proudly have been providing IOR service in all of these challenging countries for many years. Though not challenge-free, we get the job done. Over the years we have gained enough knowledge of import compliance and local customs, rules, and regulations to get the job done within expectations. We provide a speedy clearance process with all the licenses and permits needed in over 120 countries. Get in touch with our team of experts today!
