Discover how to maximize the benefits of this customs regime and understand the crucial role of an importer partner in streamlining the process. Their expertise can be instrumental in ensuring a smooth and efficient temporary importation process.
Temporary importation is a customs regime that offers significant benefits, many of which companies must be fully aware of. This format is ideal for businesses that import goods into a country for a limited period. It’s commonly used for trade fairs, exhibitions, sporting, cultural, and infrastructure projects.
Temporary Importation: what you need to know
Dan Zonnenschein, COO at Aerodoc, clarifies that temporary importation is not considered an import in the traditional sense, as the asset is not technically transferred to the entity bringing it into the country.
“This process is used when an asset is brought into the country for a specific purpose and then re-exported,” Zonnenschein explains. For instance, if a rock band wants to perform a concert with its equipment, it will import and export the necessary items once the event ends. The same applies to a Formula 1 race, a sports match, or the Olympics. Additionally, if a technology company wants to conduct a proof of concept—testing a product in a market—they may import the item temporarily to showcase it.
“In such cases, an importing company plays a pivotal role, assuming responsibility for the temporary import and providing the address and contact information of the individual responsible for maintaining the asset within the country. ‘In a temporary import, customs has legal custody of the asset, so they can contact the importing company at any time to verify its whereabouts,’ Zonnenschein explains.”
“One of the key benefits of a temporary import is that it avoids paying entry taxes. ‘If anything,’ says Zonnenschein, ‘there may be some duty to pay.’ Generally, the importer pays a fee as a guarantee, which is then refunded when the product is returned abroad.”
The critical aspect for technology manufacturers
Another crucial aspect of temporary importation for technology manufacturers is the ability to send products to a specific country for sale. Let’s consider a hypothetical scenario with a company specializing in servers, routers, and switches sending products to Guatemala. This company exports products from the United States or China and imports temporarily. “The products are stored in a bonded warehouse, and only when a distributor sells them is the definitive import made,” explains an Aerodoc expert.
“This approach saves significant time and resources, as the product is readily available to distributors while they are selling it. Additionally, it offers versatility, as each distributor has the stock on hand while selling and will make the definitive import when necessary,” explains Dan Zonnenschein, COO of Aerodoc.
Zonnenschein notes that this strategy is common for companies with a strong market presence and multiple distributors in a single country. It allows them to avoid having one distributor bear the burden of making the definitive import. “This arrangement enables the manufacturer to retain ownership of the equipment and distribute it to different distributors, rather than limiting it to a single distributor for the final import,“ he explains.
Technology manufacturers can utilize Aerodoc’s DDP with IOR service to facilitate this import type.
Aerodoc’s DDP with IOR Service
Aerodoc offers a comprehensive Delivery Duty Paid (DDP) service in conjunction with our Importer Of Record expertise, making global exports effortless. With our DDP service, you can seamlessly export your merchandise worldwide. We handle all aspects of the logistics process, from customs clearance to import duties and taxes, ensuring your goods reach their destination hassle-free.
Based in Miami, Aerodoc is your trusted partner in comprehensive logistics solutions. Our service is designed to simplify global trade, particularly benefiting industries such as IT, Broadcasting, Satellite, and many others.
An importer plays a pivotal role in international trade by ensuring compliance with customs regulations and importation procedures in foreign countries. This role becomes crucial when businesses aim to sell, distribute, store, or deliver products in countries without a legal presence. Aerodoc is your reliable partner, handling the intricate import process on your behalf.
Our in-depth knowledge of global import regulations, a strong network of partners, and commitment to exceptional customer service set us apart. We aim to make international shipping hassle-free for our clients.
Please contact our team if you want to know more about the Delivery Duty Paid (DDP) with Import on Record service.
