The Situation: In May of 2006, IVEMSA client Paper Mate, was utilizing a supplier in India to provide metal components for pen assembly. Per regular procedure, that particular supplier was selected by the client’s engineering personnel based on evaluations of technical aspects, quality, and price. Unfortunately, they did not factor in the import duties. In time, this cost made a significant impact on the budget.
The Challenge: Minimize as much as possible the associated import costs and duties, while avoiding the risk of non-compliance or possible disputes with Mexican authorities for potential discrepancies.
The Action: IVEMSA customs department worked hand-in-hand with Paper Mate personnel to analyze materials and components, and determine the most convenient tools available from the Mexican Customs authorities to reduce importation costs from India
The Result: After developing and implementing a new plan, IVEMSA was able to save the client over $800,000 USD by taking advantage of alternative tools, and meeting the requirements of a program developed specifically to cost effectively import the required metal components.