Vivansa implemented an Inward Processing Relief (IPR) management system for Lear Corporation UK, integrating the ViCS Goods Accounting module into their existing AI-powered Control Tower — the platform now commercialised as Viictor®. The solution eliminated customs duty and VAT payments on processed goods destined for re-export or customer transfer, generating substantial ongoing savings while ensuring full customs compliance.
Context & challenges
Lear Corporation UK faced significant unnecessary import-duty and VAT costs on materials designated for re-export or IPR transfer. Managing roughly 50+ monthly IPR shipments, thousands of domestic transactions, and numerous Customer Schedule Orders annually through manual processes was infeasible.
The implementation meant navigating three key customers — each maintaining separate inventories — multiple brokers, and Lear's just-in-time manufacturing requirements. A major technical obstacle was creating the necessary system interfaces without requiring modifications to Lear's legacy JIT system. Pre-analysis revealed data-channel complexities, which Vivansa resolved by leveraging existing communication pathways and implementing EDI transformations from EDIFACT format.
Our approach
Vivansa developed a comprehensive IPR compliance solution that integrated with existing systems while minimising operational disruption, centred on enhancing the operational Control Tower with the newly developed ViCS Goods Accounting service. The work included:
- A detailed pre-analysis validating master data and business processes
- Configuration of four business processes: IPR Customs Import, IPR Customs Export, IPR Transfer, and IPR Exception Handling
- Four custom data interfaces: Goods Receipt, CSO Interface, Back-Flushing Interface, and Customer Off-Track Signal Interface
The Control Tower automated identification of parts declared under specific Customs Procedure Codes, tracking them from import-declaration filing through goods receipt, inventory management, production, and eventual export or transfer to customers.
Outcomes
The solution went live in November 2023, delivering:
- Substantial direct savings through elimination of import duties and VAT on IPR-processed goods
- Complete UK customs-regulation compliance
- Automated goods tracking, eliminating manual reconciliation
- Streamlined data flow with no legacy-system modifications
- Enhanced customs-inventory visibility
- Seamless integration with external brokers and customers
The architecture was designed for reusability — a blueprint for extending similar IPR-based operations to Lear's facilities in other countries, maximising return on investment.