LEAR Corporation UK faced substantial unnecessary import duty and VAT costs on materials meant for re-export or transfer under IPR. Managing these processes manually was not feasible given the volume of transactions — approximately 50+ shipments per month subject to IPR, thousands of domestic transactions monthly, and a huge number of Customer Schedule Orders (CSOs) annually.

The complexity was further compounded by relationships with multiple stakeholders: three key customers with separate inventories, several brokers, and the requirements of LEAR’s just-in-time (JIT) manufacturing system. The challenge involved creating interfaces between various data systems without requiring modifications to LEAR’s Legacy JIT System.

Initial pre-analysis revealed additional technical hurdles concerning data channels and interfaces. To minimise the impact on LEAR’s IT department and avoid delays, Vivansa developed a strategic approach to use existing communication channels with the customer’s JIT System and implement required EDI transformations from the original EDIFACT format. This innovative solution eliminated the need for substantial modifications to LEAR’s existing systems.

Vivansa’s mission was to develop and deploy a comprehensive IPR compliance solution that would integrate with LEAR’s existing systems while requiring minimal changes to its operations. The approach centered on leveraging the already-operational Qomply® Control Tower platform and enhancing it with the newly developed ViCS Goods Accounting service.

The scope of work included multiple critical components. Vivansa first conducted a detailed pre-analysis to confirm required master data and validate business process definitions. This was followed by configuring four essential business processes: IPR Customs Import Process, IPR Customs Export Process, IPR Transfer Process, and IPR Exception Handling.

A significant technical challenge was establishing reliable data interfaces. Vivansa created four custom interfaces: LEAR UK Goods Receipt Interface, LEAR UK CSO Interface, LEAR UK Back-Flushing Interface, and LEAR UK Customer Off-Track Signal Interface. These interfaces required sophisticated integration work to ensure proper data flow without disrupting existing operations.

Rather than requiring LEAR to modify its systems, Vivansa implemented the necessary EDI transformations from original data formats, demonstrating remarkable technical adaptability. The team configured the Qomply® Control Tower to automatically identify parts declared under specific Customs Procedure Codes (CPCs) and track them through the entire supply chain process — from import declaration filing through goods receipt, inventory management, production, and eventual export or transfer to customers.

Throughout implementation, Vivansa provided comprehensive project management, quality assurance, and user training to ensure a smooth transition to the new system. The phased implementation approach minimised disruption to LEAR’s operations while ensuring that all compliance requirements were met.

The implemented solution went live in November 2023 and has been operating successfully since then. Key outcomes include:

1. Substantial direct savings for LEAR UK through elimination of import duties and VAT on goods subject to IPR processing.
2. Complete compliance with UK customs regulations for Inward Processing Relief.
3. Automated tracking of goods under IPR from import to export or transfer, eliminating manual reconciliation processes.
4. Streamlined data flow between systems without requiring modifications to LEAR’s legacy JIT system.
5. Enhanced visibility into customs inventory status, enabling better management of goods under various customs regimes.
6. Successful integration with external brokers and customers, creating a seamless end-to-end process.

The solution’s successful deployment has demonstrated Vivansa’s exceptional expertise in addressing extremely complex customs compliance challenges. The implementation showcases the company’s unique technical capabilities and deep understanding of intricate customs regulations, particularly in the specialised area of Inward Processing Relief management.

Importantly, the entire solution architecture has been designed with reusability in mind. The processes, interfaces, and configurations developed for this project can be readily adapted and implemented at other LEAR facilities globally. This strategic approach provides LEAR with a blueprint for extending similar IPR-based operations to their facilities in other countries, maximising the return on investment and creating opportunities for group-wide customs duty optimisation.