Latin America is one of the fastest growing data center markets in the world, so the topic “Building Data Centers in Latin America” was perfect for IDG’s 21st Century Data Center Symposium held in Dallas a couple weeks ago.
Based on the conference, I have these recommendations for product delivery into the region:
- Set expectations based on the specifics the individual country, LatAm is not homogeneous. For example, Chile is strict on paperwork, Guatemala is more relaxed.
- Clarify delivery terms. Delivery Duty Paid (DDP) needs to clearly define the shipment hand-off. The difference between the “construction site” and the “staging/off site receiving area” can be weeks—and kilometers—apart.
- Value Added Tax (VAT) is complex, get professional help. In some cases it can be recovered, in most cases it needs to be paid in advance.
- Business practices vary by country, there’s a large gray area of local expeditors, prepaid contractor fees, etc. Know that going in, do the necessary research.
- Duties vary widely with Brazil having the steepest ones. Plan for these in your project costing and make sure duty codes for your products are correct.
Polargy has partnered with Anixter for most of our product deliveries into the LatAm region which allows us to leverage local boots on the ground to handle most of these logistical, tax, and duty issues.
We anticipate continued success in the LatAm region and look forward to sharing more insights as we gain them.