“Import duties and taxes totaled 35%.”
SysTech and its’ manufacturers always try to meet customer requests. It can be challenging when working through a local client when their customer is located outside the United States. Ensuring the correct equipment is specified and will perform as required when the product is not assembled nor tested before shipping, can be problematic.
Our client, a local exporter of mechanical equipment, sold fans to a food manufacturer in South America, who needed exhaust fans for multiple bag dump stations in an ingredient mixing area. SysTech was contacted and asked to quote Arrangement 4 fans with AMCA B construction, without the motors.
The fan selected was a Cincinnati Fan Cast Aluminum Pressure Blower Model PB, sized for 600 CFM @ 6” WC and 2943’ elevation, and was ideal for this project, as it is used in the US by several OEMs for similar applications. The client told us their customer did not want to purchase the completed fans because import duties and tax rates into Brazil totaled 35%. Buying the fan parts in the US and the motor in Brazil was a practical solution for them to avoid the additional taxation.
The end-user assured us their client would take responsibility for mounting the motor, securing the wheel, supplying the correct motor frame, and balancing the fan assembly.
Our experience is that not all end users have the capability to assemble and balance fans in the field correctly. If not assembled and balanced properly, the fans shake apart over time. In addition, customer supplied motors need to be carefully coordinated to fit with the fan motor base.
That said, the end-user accepted responsibility for the performance and integrity of the fan, wheel and motor assembly, as well as the motor frame selection.
Shipping fan parts to a third party for field assembly needs to be a careful transaction, and in this case, the parts shipped, and the project, after several months, is working perfectly. Kudos’ to the end-user for great mechanical work and for saving the 35% tax!