Tech manufacturers and distributors can bring their products into local markets without relying on intermediaries.
Companies looking to expand into Latin America often face a recurring obstacle: the need to establish a legal entity in every country where they want to sell, or face high intermediation costs. Furthermore, bureaucratic hurdles, regulatory differences, and tax burdens can deter even the most ambitious growth plans.
However, an alternative logistics model offers a way around these challenges: the Buy-Sell service, which enables international manufacturers and resellers to bring products into local markets without the need to establish a company in the destination country.
A Legal and Commercial Bridge to Sell Without a Local Presence
Aerodoc, a company specialized in international logistics, operates as an Importer and Exporter of Record (IOR/EOR). Its Buy-Sell service acts as a legal and commercial intermediary between the manufacturer or distributor and the final buyer. In practice, it purchases the product in the country of origin and resells it in the destination market. It’s a comprehensive solution that includes transportation, customs, local invoicing, and even local collection in the destination country.
Germán Muller, CEO at Aerodoc, explains: “The main advantage of our Buy-Sell service is that the manufacturer’s or distributor’s products can be delivered locally without the need for a legal entity in the customer’s country. We import the products, deliver them, invoice them locally in local currency (including logistics services and taxes), and then transfer the FOB value of the goods back to the manufacturer or distributor.”
This model lowers the barriers to entry in markets where the cost of setting up a formal structure can be prohibitive. Aerodoc assumes all tax and customs responsibilities, allowing the supplier to receive payment as if it were a domestic sale. The local buyer, in turn, gets a local invoice with all taxes included, enhancing the purchasing experience and simplifying accounting.
Tax and Logistics Advantages for Manufacturers
One of the key strengths of this service lies in tax optimization. By invoicing locally, Aerodoc handles the payment of applicable taxes to the authorities in the destination country, removing the need for the supplier to register for tax purposes.
This is no minor detail: in markets where indirect taxes, such as VAT or IGV, carry significant weight, compliance can become a burdensome task. By outsourcing this responsibility, companies reduce their administrative burden and minimize the risk of penalties resulting from errors or non-compliance with regulations.
Another advantage lies in the savings on intermediation costs. Traditional distributor networks often involve high commissions that can double the product’s original price. Aerodoc removes these intermediaries by centralizing the entire operation. Working with a single partner allows for more efficient logistics, resulting in better logistics rates. Part of these savings can be passed on to the end customer, partially offsetting the impact of import duties.
The Power of Service Customization
Aerodoc offers a solution tailored to each customer’s specific demands. The company understands that buyers often need to use local funds for their purchases for tax efficiency reasons, or that they prefer to operate locally while still seeking the competitive international pricing offered by large distributors.
German Muller notes that this service is especially sought after by manufacturers or distributors who want to provide personalized service and direct commercial attention to their customers, without going through intermediaries.
“Our IOR service allows you to export your products to any country on the continent. We manage every aspect of the logistics process, including customs clearance, import duties, and taxes—ensuring your products reach their destination smoothly,” adds Dan Zonnenschein, COO at Aerodoc.
Q&A
- Why is it difficult for companies to expand into Latin America? Because entering each market involves regulatory differences, tax challenges, and complex bureaucracy that can hold back expansion efforts.
- What does Aerodoc’s Buy-Sell service offer as an alternative? It provides a way for manufacturers and distributors to sell in Latin America without the need to establish a local company. Aerodoc acts as Importer and Exporter of Record, purchasing goods in the origin country and reselling them locally, managing everything from transportation and customs to local invoicing and payment collection.
- How does the service assist with tax preparation? Aerodoc handles all tax obligations in the destination country, including invoicing in local currency and paying local taxes, so suppliers don’t need to register for tax purposes or manage local compliance themselves.
- What cost advantages does this model bring? By removing traditional intermediaries and centralizing operations, companies avoid high distribution markups and gain access to better logistics rates. These savings can improve margins or be passed on to the end customer.
- Why do manufacturers and distributors choose this solution? Because it allows them to operate locally and offer direct service to buyers, using local funds and currency, without compromising the competitive pricing and control that come with managing the relationship themselves.
