November 12, 2022

India Specific Challenges for your Rack and Stack?

Expanding your Data-center footprint to India, use our tips and readiness checklist to prepare for your remote rack and stack.

India Specific Challenges for your Rack and Stack?

Doing business in any country comes with it's own set of challenges. This document in no manner talks about India being a difficult place, but knowing about the challenges only prepares us to plan for a fast turn around.

India is expanding, adding more people to the Digital economy every day. Are you expanding in India?
  1. Equipment Import into India
  2. This becomes your first entry challenge, especially if you are importing equipment yourself or just sending it to a service provider for it be provisioned in India. Ensuring the reciever has an IEC Number (Import Export Code), can handle Paperwork, and has an account with which Customs Duty and charges can be paid.

  3. E-Waste Declarations
  4. If you are opening the boxes to Install them before shipping, and or it is refurbished equipment being sent - chances are it will be marked as e-waste and will require clearance from the Environment Team, as well as Declaration that the material will be shipped back as per e-waste policies of the Government of India.

  5. Value Asssessment
  6. It does not matter that you are a large customer for a specific brand, and get 70% discounts on your Purchase. Value assessment for Customs Duty is done as per rates available with the officer. Ensure you send proper documentation showing Purchase, Payment proof etc, if you really want to show a value that is lesser than the Online Prices of the Same Goods.

  7. Local and State Taxes
  8. Depending on which state your Goods get cleared, and which state they are headed too, there maybe a local Tax Such as Excise and or Octroi. While Government of India has now established Goods and Service Tax (GST), there are State Entry charges that may need to be paid when goods travel across states. This may also require additional paperwork that you will need to provide to your logistics provider.

  9. E-Way Bills
  10. Moving goods across State and even inside State for goods valued over Rs. 50,000 needs an e-way bill. Ensure proper documentation is done for goods movement.

  11. Insurance
  12. While it is not common to loose goods during transit, but one can only be careful. Esnure yoru goods are Insured, and make sure you have checked with Logistics Providers if they approve of the Insurance company. We know of a Large Logistics and Shipment provider that only accepts insurance from one company.

  13. Local Handling
  14. While it maybe customary for Technicians to help unload, load and move equipment on their own, you may face this to be a challenge with both the Data Center and Hands On Teams - asking for helping hands.

  15. Delays
  16. Come Monsoons and moving equipment in cities like Mumbai and Chennai becomes a challenge. There are delays in Shipments, Manpower availability and other challenges. Plan for Delays as per local conditions.

  17. Inventory Check
  18. Customs opens a large number of boxes for verification. There are times we have seen cables / connectors gone missing, and it becomes difficult to track if we lost them at the point of shipment, customs or recieving. Make sure inventory checks are done at each hand over point.

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You can always take it easy and outsource your Rack and Stack to System3's Professional Team.