Commercial Transactions for IT Technology and Importing
Released On 7th Nov 2018
As described in one of our previous blogs, importing IT technology into international countries requires import licences, a noted import of record; it is complicated and if done incorrectly can result in fines and delays.
But this process often has another layer of complexity, one we are seeing more and more: the commercial transaction.
What is a commercial transaction in the trade compliance world?
In the world of international trade compliance, a commercial transaction describes the purchase of goods between two businesses in different countries. In many countries around the world, the law requires that the money transfer for the payment of goods must leave the country of the purchasing business.
For example, if an end user in Brazil is buying IT goods from a reseller in the USA, the Nota Fiscal Electronica imposed by the Brazilian tax authority states that the importer must be the end user in order to get payment approved. An Importer or Record has to handle things very carefully and all parties must be aware of what each entity’s responsibilities are.
This type of transaction is complicated by the fact that in some countries, banks would prevent an international transfer of the payment if the importer of record on the ‘bill of entry’ is not the end user making the payment – see our blog to understand the reasons why the end user would not want to be the importer of record.
This type of transaction is common, often for goods that simply cannot be purchased within the end user’s country. Perhaps you’re importing IT hardware for a new data-centre, or goods for a new site for the end user. Obviously, this can cause a conundrum; how can the end user get the IT technology they need for a site when the technology is not available to purchase locally, and they don’t want, or can’t be, the importer of record?
How can Mouse & Bear Solutions help?
Mouse & Bear Solutions are highly experienced and knowledgeable about international trade compliance, offering both importer of record and exporter of record services. We pride ourselves on our import solutions and deep knowledge of transactions where the buyer and seller are in different countries.
To benefit from our flexible services please get in touch.