There are many complexities associated with shipping internationally, especially if the goods in question are treated with high scrutiny at foreign borders. However, there are items such as computer software and IT equipment that also incur the added expense of heavy import taxes on top of a challenging clearance process. What technology resellers may not be aware of is just how high these costs can go; in some instances, 90% of shipping costs are due to taxes. When value-added tax is put on these shipments, an additional 25% of the goods’ commercial value must be paid. This is an outrageous sum when the technologies being shipped are worth upwards of a hundred thousand dollars, which is often the case.
Paying value-added tax in particular can grow to be unaffordable for many companies and clients, as this tax is placed whenever value is added on a stage in production meaning large companies might have the resources to budget for it but those just expanding internationally may not, and certainly without their business taking a blow. It is however unfortunately implemented in a large number of industrialized countries, specifically in the European Union.
While it’s understood that many of these costs can be written off eventually, an importer of record can ensure all import taxes, sales taxes and co-location costs are returned to clients within just 6 months of their shipment being cleared, which is widely preferred to waiting the 4- to 5-year period it could take when choosing the more traditional route,. When you need to get help to recover your taxes in foreign countries an importer of record can speed up the process and file all necessary documentation on your behalf, allowing you to reinvest the money back into your business faster or pay off loans to avoid growing interest rates. TecEx is one trusted importer of record with a point of presence in over 120 countries, and includes tax recovery as part of their service; this refund may be obtained from 40 of the countries they work with regularly.
Another monetary benefit to partnering with this importer is that they only charge the landed-cost, meaning quotes remain quotes irrespective of any changes the receiving country makes to their legislature once a quote is accepted. This ensures no surprise fees end up on a client’s statement. Moreover, they offer a sense of assurance as preapproval is guaranteed within the first 3 days of the process and full clearance in under 10 days regardless of the challenges some countries impose on these types of transactions. Finally, once clearance is awarded, this importer liaises with a client’s preferred freight service of forwarder to ensure goods arrive where they’re supposed to at the end of the day.
Shipping overseas to foreign countries can be an involved endeavour, therefore why not partner with an expert in imports that provides you with taxes back in record time alongside quick, compliant and dependable service? Shipping internationally should not remain a privilege for those companies that have great financial means, but should also be accessible to those who value entrepreneurship, and expanding globally to make a name for themselves.
