Dear Production Procurement Supplier:
As an IBM supplier, you play a key role to ensure compliance for imported shipments and the security of our supply chain. IBM is committed to meeting all applicable government regulations for importation and security. Proper compliance with import requirements is an essential part of supply chain security and is a condition of doing business with IBM. I urge you to ensure that your firm meets all requirements of the importing location, whether imposed by a government agency (in the form of regulations) or by IBM (in the form of contract terms and conditions). The following summarizes the key aspects of both areas of commerce:
Import Compliance
Please access the IBM Global Procurement Web site for information regarding import compliance. Resources are located under "Information for Suppliers>Compliance Guidelines>Instructions for Export to IBM."
Highlighted below are a few key aspects of import compliance:
1. Commercial invoice:
- Must be in English
- Must describe the goods using language which completely and clearly identifies the content of the shipment
- Quantities stated must be accurate
- Must have an accurate Ship-to code/Bill-to code
2. Value of goods stated on invoice:
- Must be complete and accurate, including all "manufacturing assist" information
- Must be the final amount, with no adjustments after shipment
- Must equal the true "demand for payment" amount (excluding assist values, for customs purposes only)
3. Country of origin marking:
- All goods must be marked with the country of origin (e.g., "Made in France")
- Immediate packaging must be marked with the same country of origin
- Commercial invoice must state the country of origin for each line item and must match the marking on the goods
- Packing list must state the country of origin for each line item and must match the marking on the goods
4. Packing list:
- Must be placed in an envelope attached to each container
- Only one copy is needed for each pallet
In order to facilitate the rapid clearance of cross border shipments, IBM suppliers must comply with the Shipping Procedural Instructions for the destination country. These instructions contain information required for preparation of a shipment to IBM, including customs requirements (e.g., commercial invoice and product marking requirements) and certain IBM-unique requirements such as the ship-to code.
Supply Chain Security
IBM suppliers must assess their supply chain security and implement action plans to address any identified deficiencies. To facilitate this assessment, guidelines for establishing, improving, or amending supply chain security procedures are available on the IBM Global Procurement Internet site (www.ibm.com/procurement). Resources are located under "Information for Suppliers>Compliance Guidelines>Supply Chain Security Guidelines/Supply Chain Security Requirements."
Suppliers that are not using IBM's contracted carriers are required to confirm their carriers' ability to comply with applicable government regulations and IBM requirements.
In closing, I am asking you to e-mail Tony Astacio by April 15 to confirm that your shipments comply with these requirements. Thank you in advance for your cooperation.
Sincerely,
Original Signed By:
Ian J. Crawford
IBM Vice President, Production Procurement
Integrated Supply Chain
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