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July 19, 2012

Appliance Deployment Challenges Emerge when Shipping Overseas

By Susan J. Campbell, TMCnet Contributing Editor


It’s a global market. International deals often come with a barrage of compliance laws that if not followed correctly, can seriously hamper the way companies do business. The path to proper appliance deployment must follow a line of regulations between exporters and governmental agencies, as well as the recipient of the goods.

According to a recent NEI (News - Alert) blog, when a company is well schooled on each and every regulation, application shipping and deployment overseas can be successful. There are a number of variables involved, however, that can jumble the process to the point of complication.

Appliance deployment, such as that provided by NEI, can involve bundled software or hardware solutions, such as servers. It can also involve engineering, logistics, technical support, and manufacturing. In fact, appliance deployment is more important to the market now than it ever has been, and it continues to grow.

With many businesses looking to the cloud, the cloud computing market is expected to be a $150-billion industry by 2013. Companies will have to be cognizant of trade regulations associated with this business model as transactions are carried out overseas.

The Export Administration Regulations Act outlines how exports must be transacted. The Act focuses tightly on dual-use products, used by the military and the general public. Products strictly intended for military use are governed by the Department of State.

Whether the product is tangible or intangible is subject to review to place it in a classification and to license the product.

Agents are often sent into the field to ensure compliance rules are being followed. The agents generally come from the Department of Commerce and see that the product is not deviating from its intended target.

Violation of any part of the rules can result in fines up to $1 million and jail time.

For companies that slip up and fail to follow the rules, it can mean losing the privilege of exporting, which can be financially crippling. The revocation of export privileges can last years, which effectively takes the business and its products off the market.

NEI has experience shipping products across the globe and pays extremely close attention to the rules outlined in the U.S. Export Administration Regulation Act. The products and services that clients rely on are delivered not only on time, but within the regulations required of NEI.

OEMs need not worry about regulations, as NEI handles the exporting process and coordinates with all parties involved, from foreign importers and inspection agencies to freight forwarders.

All products and services arrive as intended so companies can focus on their core competencies to drive revenue.


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Edited by Braden Becker


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