Leveraging Cross-Border Trade Programs

International Truck and Engine taps Vastera to manage N. American trade operations

Dulles, VA  January 24, 2002  International Truck and Engine Corp. has signed on to use solution provider Vastera to manage its North American trade operations.

International, the operating company of Navistar International Corp., manufactures mid-range diesel engines, medium trucks, school buses, heavy trucks and severe service vehicles. With annual sales of $6.7 billion, International has plants throughout North and South America, producing vehicles and parts sold through a dealer network with more than 1,000 outlets.

International imports components from all over the world for assembly into vehicles within the United States, as well as other countries. International's ability to take advantage of preferential trade agreements like NAFTA is key to minimizing its import duties, which, according to a recent study by Penn State University, can constitute as much as 75 percent of the total cost of importing.

Under the manufacturer's five-year managed services agreement with Vastera, the solution provider will use its TradeSphere technology through its automotive trade hub in Detroit to help International fully realize the potential duty savings for which it is eligible, while complying with country-specific trade regulations.

The TradeSphere solution will identify the specific preferential trade programs for which goods qualify, help classify products, automatically generate and file the appropriate documentation with governmental agencies, track the country of origin for parts, identify and report assists on U.S. goods manufactured abroad and automatically perform the country-specific compliance checks associated with shipments.

"We see a tremendous opportunity to improve our customs compliance efficiency by leveraging Vastera's capabilities," said Tom Erickson, director of logistics and aftermarket purchasing at International. "A significant investment in technology and trade expertise is required for any company to effectively manage preferential trade programs, global trade compliance and international goods movement in general. Not doing these things well can significantly impact international business performance.

"With Vastera's solutions, we expect to enhance operational efficiencies that will ultimately result in faster cycle times and better service for our customers, while reducing our own expenses," Erickson concluded.