What you need to know about equipment shipping guidelines for foreign markets

Aug 02, 2018
Blog

Shipping to foreign markets brings new life to your equipment
Pre-owned equipment is increasingly sourced from and sold to foreign markets, which makes cross border shipment a necessary part of giving assets a second or third life. One step that might seem straightforward but can cause severe reputational and financial damage if not managed well, is clearing the buyer and making sure they are not on any exclusion lists to ship cross-border.

In addition, buyers must use assets for their intended purpose. In the US, hard laws states that it is mandatory for organizations to “clear their buyer”, whereas in the EU this is more of a market standard, without real financial penalties if organizations inadvertently sell equipment to a buyer on the exclusion list.

Before we close a sale, we run the buyer through a program that compares them against a real-time exclusion list. The list consists of federal- and sector-based exclusions, in addition to our own list of countries and organizations.* "
Blog

Understanding cross-border equipment shipping
In the EU, the Waste Electronic and Electrical Equipment Directive (WEEE)** and Basel Convention have “merged” to become the Correspondents’ Guidelines. These currently only apply to the IT sector, but may also impact other industries in the future. The guidelines make cross-border shipment:

  • More costly
  • More time consuming
  • More complex

Every pre-owned asset (with some exceptions) can only be exported or imported when all the involved countries (exporting, importing and transit) have approved the trans-border movement. Not complying with the Correspondents’ Guidelines can potentially result in loss of customers, as assets lacking all the necessary permits could get stuck at Customs.

The new Correspondents’ Guidelines will make shipment and refurbishment of used electronics more bureaucratic, but will also provide commercial opportunities to support those organizations that are struggling.*** "
Blog

Practical implications for shipping equipment

  • Where organizations lack the capabilities and experience to export equipment to customers in line with relevant cross-border shipment legislation, it might be smarter selling equipment in its country of origin and leaving the exporting responsibilities to the buyer.
  • It seems to be generally accepted in all countries and markets now that one shouldn’t export equipment to countries and/or organizations on exclusion lists. However, exclusion lists differ per country and are dynamic by nature. So it is important to ensure you are complying with the most recent version of any exclusion list.
  • In respect of new waste shipment, the Correspondents’ Guidelines make refurbishment and remanufacturing at a centralized location more costly and time consuming for IT manufacturers, dealers and resellers in Europe.

Research and insights:
DLL’s newest whitepaper focuses on cross-border shipment, as well as data protection and regulations for recycling of assets. The whitepaper examines the impact of compliance on manufacturers, dealers and resellers, making the transition to a circular business model. Get your free copy of the whitepaper now.

 

*Healthcare manufacturer of MR systems

**To read more about the EU’s most important recycling directives,
click here.

***Reseller of PCs and laptops