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Apr 17, 2018 7:09:00 AM | Field Services Why You Need a BOM Analysis for an IT Deployment in Russia

BOM stands for Bill of Materials, and you’ll need one for entry into Russia.

An IT deployment to any country is challenging, with reams of paperwork, bureaucratic formalities, language and cultural barriers, currency challenges, and sometimes overzealous customs workers.

Given the challenges of global IT deployments, you don’t want to have a business plan that is going seamlessly and smoothly and suddenly run into a roadblock because the item you are planning to ship isn’t compliant with the country. This is especially true in Russia, where there are stringent requirements for entry approval on almost all IT equipment.

This is where a BOM comes in. It’s tempting to say BOM stands for “Be Overly Meticulous,” because you should be. But, no, BOM stands for Bill of Materials, and you’ll need one for entry into Russia.

While it’s not a requirement for entry, you’re playing Russian roulette by not. If you don’t have a BOM conducted, your whole deployment could become entangled in bureaucracy and lengthy and costly delays simply because of one contraband component. Do you want to take that risk?

What is a BOM?

BOMs can be simple, with just a description, HS code (Harmonized Commodity Description and Coding System), and the originating status of each material item. Or they can be more in-depth, such as the BOM we offer, including the cost and availability of each component, whether you need to import your equipment or source it in the country where you’re doing businesses, and potential alternatives that could save you time or money.   

To see different kinds of BOMs, from one for a cart with wheels to one with an electronic component, check out these examples. But we particularly like this description from Electronic Design:

“In the world of product design and manufacturing, the bill of materials (BOM) is a critical product information record for both the engineering and manufacturing teams. Managing BOMs with the wrong tools can cause product errors, delays, and compliance failures.”

Why You Need a BOM in Russia

Our sources in Russia point to the importance of a BOM. For instance, you could be importing to Russian security cameras for retail IT deployment. And the security cameras themselves may well be within the framework of compliance for acceptance, but there may be a component of the camera that isn’t.

And therein lies your potential problem. A complete BOM can flag these things before they derail or delay your deployment.

To avoid such a catastrophe, partner with a global field tech company that can give you a thorough analysis of every component, chip, wire, or lens. You need to have part numbers, serial numbers, manufacturer IDs, and assembly origination information readily available.

In short, the stakes are too high in an international IT deployment to cut corners and hope for the best. You need a complete Bill of Materials analysis before shipping your items to Russia, or anywhere for that matter. Failure to do so will almost certainly result in failure.

Why a Russian BOM?

While a BOM analysis is a good idea for any country that you are attempting an overseas deployment, Russia comes with its own unique and evolving conditions that make it a must.

Part of the reason is rooted in politics, both foreign and domestic.

On the domestic side, the Russian government is trying to prop up domestic companies.  One of the ways they are doing this is by mandating that imported foreign items are stopped at the border if there is a viable homegrown alternative.

For example, according to Export.gov: 

Russian Government Resolution No. 1236, in effect since the start of 2016, requires Russian government agencies to give priority to Russian software based on a registry published and updated by the Russian Communications Ministry. Under the new law, government agencies may only buy foreign software when a suitable domestic substitute is not available.”

If a suite of software is being imported without a BOM analysis first, you may end up running afoul of these Russian laws.

Our source in Russia recommends that you shouldn’t be so wedded to a particular brand. “Don’t be stubborn,” he says. Meaning that if your BOM contains a brand that is not present in Russia, but its rival with virtually similar characteristics is, use it! Some flexibility on the importer’s part goes a long way, our source says. Of course, that should not apply to brands that represent your marquee product.

On the foreign side, there are deep governmental fears about encryption devices making it into the country. These anti-encryption laws are enshrined in something called the Yarovaya package of rules that take effect on July 1, 2018.

The laws, in part, mandate “requiring telecommunication service providers to furnish encryption keys to law enforcement agencies upon request.” So any electronic materials shipped in that would, even tangentially, run afoul of the mandate and broader anti-encryption laws could cause your shipment to be turned away, which would result in lengthy delays.

The Kinettix Way

You need BOM analysis for everything, but let’s face it: Shipping in 5,000 raincoats versus 5,000 routers is very different. In the world of electronics, parts grow obsolete, there are pirated parts and environmentally non-compliant parts. And each country has its own lists of permitted and non-permitted products.

For a limited time, Kinettix is offering a free BOM analysis so you can ascertain the cost and availability of components and alternatives that could save you time and money. Don’t risk becoming entangled in customs bureaucracy. Your deployment begins today with your free BOM analysis.

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Chad Mattix

Written By: Chad Mattix

A global IT executive experienced in establishing strategic partnerships for large U.S.-based organizations, Chad Mattix specializes in managed services, contract pricing and negotiation, and the startup and growth of technology services companies. Chad has spent the last 15 years helping large U.S. retailers and U.S.-based IT service providers expand their capabilities across the globe to follow their clients’ expansions. He has developed and completed full entity formations in Brazil and China and has worked with sales pursuit teams in messaging and client-facing presentations. He has also established global alliance and partnership models for multiple global IT organizations. Chad travels around the world to develop and maintain long-term relationships with employees, clients, vendors and partners, which are critical for success.