Origin Engineering The Ultimate FAQ Guide 2

Origin Engineering: The Ultimate FAQ Guide

If you have any question about origin engineering, you will find the answer right here.

This is because this guide explores all information you’re looking about origin engineering.

So keep reading to learn more.

What Is Origin Engineering?

Origin engineering is the exercise of transferring some of the manufacturing procedure to a different country.

This is done in order to evade high tax rates or unfavorable requirements and restrictions.

Engineering process flow

Engineering process flow

How Does Origin Engineering Work?

After you are complete with your part of the manufacturing work, it is time to relocate the half-finished product.

This is done to the origin engineering company usually a different country.

Once the product arrives at the origin engineering company, the transfer is said to be successful and production works can now commence.

The owner of the product and the origin engineer work closely together.

This to ensure that the product is manufactured according to the owner’s preferences and standards.

Once the product is done, a quality assurance is conducted, samples tested, etc.

When everyone is satisfied about the job well done, the product can now be released to the market.

The company is at liberty to take and supply orders.

What Are The Benefits Of Origin Engineering?

  • Saves cost- this is the major advantage of origin engineering.
    You can choose to do your origin engineering in a country that has relatively low labor cost and lower duty rates.
  • Quality improvement- with origin engineering you are exposed to a variety of experts.
    This definitely means that your end product will meet the required quality standard.
  • Access to better infrastructure and technology- origin engineering companies have the latest technology, infrastructure and resources.
    This is to ensure that the manufacturing for your product is topnotch.
  • Time saving- hiring an origin engineer saves you time that you would have otherwise spent on producing the other components of your product.
  • Risk reduction- by hiring an origin engineering company, you reduce for yourself a significant number of risks.
  • Increased efficiency- origin engineering companies guarantee maximum productivity in a relatively shorter period of time and at reduced costs.
  • Origin engineering encourages growth of companies.
  • Enhances flexibility -origin engineering ensures that your product and company adopts to the dynamic production and trade conditions.
  • You can relax and have peace of mind since your product is being worked on by experts with efficient skills.

Is Origin Engineering For You?

The main aim of origin engineering is to save costs, avoid high tax rates and conditions that do not favor the manufacturing of our product in that particular country.

You should consider origin engineering under the following circumstances:

  • If cost saving is your goal
  • If you do not have the infrastructure or technology to meet the products requirements
  • If there are unfavorable restrictions on the products manufacturing.
  • If other countries offer lower duty rates
  • In case you do not have a team of experts to suit your product’s manufacturing needs.
  • If you cannot afford to train the people locally
  • Whether the origin engineering company understand your expectation and goals
  • Whether or not origin engineering is suitable for your company goals
  • Whether the origin engineering company guarantees you a quality end product as per your requirements.

What Types Of Products Do Origin Engineering Companies Typically Support?

Some of the products that origin engineering supports include:

  • Mobile phones
  • Computer devices
  • Motor vehicles
  • Kitchen appliances for instance; fridges, ovens
  • Electronics like televisions
  • Machinery
  • Planes
  • Ships and other water transport vessels.

Is Origin Engineering The Same As Outsourcing?

Basically, outsourcing refers to the act of allocating another firm projects and tasks that would have otherwise been done internally.

On the other hand, origin engineering refers to the process of transferring part of your manufacturing to a different country.

Outsourcing is mainly done for services unlike in origin engineering where tangible products are involved.

How Does Origin Engineering And Contract Manufacturing Compare?

Contract manufacturing is a type of outsourcing where a manufacturer gets into a contract with a company for products or parts.

On the other hand, origin engineering is relocating part of your production work to a different country.

Contract manufacturing

Contract manufacturing

What Are The Risks of Origin Engineering?

  • Hidden/ unexpected costs- with origin engineering you might incur extra costs that you did not anticipate
  • Language barrier- since you are moving your production to a different country, it is likely to encounter language barrier.
    This can lead to problems caused by miscommunication as vital information can be lost in translation.
  • Time and culture difference- time difference may interfere with the production work therefore delaying orders.
    Culture difference for instance holidays and working days might slow down the production.
  • Lack of confidentiality- there is a risk of the origin engineering company sharing confidential information to third parties or your competitors.
    To curb this risk, it is better to sign a Non-Disclosure Agreement.
  • Lack of oversight- due to the geographical distance between you and the origin engineering company.
    It may be difficult to oversee or inspect the production process.
  • Reduced quality control in some instances- there is a chance that the quality of your product might not be exactly what you hoped for.
  • Lack of control of the production process- your hands are tied in the manufacturing process and you just have to hope for the best.
  • Security risks- your product may encounter various risks that is why it is advisable to insure it against all possible risks.
  • Backlash from people- you may face backlash from people who feel like you are denying them work opportunities.
    This can be a result of relocating your manufacturing process to another country.

How Can You Maintain Control Over The New Product In Origin Engineering Contractual Agreements?

Agree beforehand- hold these discussions with your origin engineering company or sign a legal contract. It should state clearly that you want to maintain full control of the new product.

Ensure that the product is registered under you and is considered our property.

You can get a lawyer to draft such contracts to avoid legal problems once the product is finished.

Can Origin Engineering Help You Accelerate Your Product Launch?

Origin engineering can indeed help accelerate your product launch.

It can help reach out to more partners and the target consumers. Of course, this happens with your go ahead.

What Is The Customs Clearance Process for Origin Engineered Products?

After determining the country of origin for the product, the customs clearance procedure for origin engineered products is the same as others.

The customs clearance process for origin engineered products is as follows:

  • Check in with the relevant customs office and get registered.
    They might provide you with either an import or export number depending on which one you are doing.
  • They inspect your product and make sure it is not restricted both for import and export.
  • Find out the product’s HS code.
  • If it is a requirement, lodge in the export declaration.
  • Get the necessary licenses and permits.
  • Obtain the all the required documents and certification for your product.
    This includes packing lists, invoices, certificate of origin, bill of lading etc.
  • Identify which shipping mode suits you and your products specification.
  • Ahead of shipping, ensure that you submit the export declaration and any other documents that the customs might require.
  • Go ahead with the shipping of the product as per your agreement with the importer.
  • Issue the importer or their agent with the certificate of origin.

What Are Rules Of Origin In Relation To Origin Engineering?

Rules of origin are laws and regulations put in place to help in determining the nationality of a product.

Rules of origin in relation to origin engineering are:

The country of origin for origin engineered goods is decided as the last where there was a considerable amount of manufacturing to give the product.

It’s key components or character.

This means that if a product is origin engineered in a several countries, its country of origin will be listed as the one where the most substantial work took place.

For instance, a car manufacturing company makes the engine and the other parts are made by an origin engineer in another country.

The first country will be recognized as the country of origin since it makes the vital component of the product.

Of course, there are situations where more than one country gives the product ‘substantial character’. In this case the last country where the manufacturing took place will be considered to be the country of origin.

Do Country Of Origin Labelling Requirements Differ For Origin Engineered Products?

Country of origin labelling requirements have no tangible difference for origin engineered products.

Some of these general requirements are:

  • The labeling should be done in the specified language. For example, goods entering the US from other countries should be labeled in English.
  • The label should be clearly written on the product
  • The marking should be visible.
  • The label should be permanent
  • The country of origin label should be written in plain, legible characters.

How Do You Choose The Right Origin Engineering Company For Your Critical Production Needs?

You need to consider the following factors while selecting the right origin engineering for your critical production needs:

  • Cost efficiency- the aim of origin engineering is to save you cost so it is advisable to go with an origin engineering company that aligns with your goals.
  • The infrastructure, resources and technology- when selecting an origin engineering partner
    It is best to go for one with the one with the latest technology and most advanced infrastructure.
  • Dedication and ability to observe the standard lead time- conduct research on the prospect companies.
    Find out their dedication to production works and their ability to meet deadlines.
  • Quality assurance- you obviously want to go with the company that ensures you get the best quality product.
  • Culture and time difference- when looking for an origin engineer, ensure that the time difference won’t interfere with the production process.
    The same goes for language and cultural differences.
  • Duty and tax rates- ensure that the country where the origin engineering company is located has favorable tax rates to suit your budget.

How Do You Ensure Quality Control In Origin Engineering?

Some of the tips to ensure quality control in origin engineering include:

  • Carefully select the origin engineering firm to work with.
    This is the most crucial point in ensuring you get the best quality of your product.
    Do your due diligence and settle for a company with a good reputation.
  • Discuss your expectations with your origin engineering company beforehand.
    It is advisable to let the company you are working with know exactly what your expectations about the product.
    This includes the quality and deadlines.
  • Develop a good relationship with your origin engineering team- you should aim to work amicably with your team for better results.
  • Invest in your origin engineering team in terms of resources.
    For quality to be ensured there is need for sufficient funds, resources and infrastructure.

How Do You Address A Product That Has Failed Quality Assurance Testing In Origin Engineering?

Depending on the kind of agreement you have with your partner, the product can be redone at the company’s cost or your own.

If the damage is beyond repair the product should be discarded. Under no circumstance, should it be availed in the market.

You should be keen what went wrong so that they can be avoided in the future.

What Costs Should You Expect When Relocating Part Of Your Product’s Manufacturing From One Country to Another?

Some of the costs that you should expect when relocating part of your product’s manufacturing from one country to another are:

  • Logistics and freight costs- you will obviously encounter transportation costs.
    From shipping from your home country to transporting your product when they land in the other country.
  • Costs related with tax- you will need to settle customs cost taking your product out of the country.
    Also, while bringing into the other country.
  • Legal costs- you will need to pay for the drafting of legal contracts such as the Non-Disclosure Agreement
  • Insurance cost- you might want to take an insurance cover for your product.
    This is to insure it of any risks that might it may face before it reaches the other country.
  • Cost of unexpected risks- you might come across unforeseen circumstances that might incur you some extra cost.

What Is The Role Of A Non-Disclosure Agreement In Origin Engineering And What Does It Cover?

Non disclosure agreement

Non-disclosure agreement

A Non-Disclosure Agreement (NDA), is contract between two or more parties where they agree not leak any private information.

The Role Of A Non-Disclosure Agreement;

The most crucial role of the Non-Disclosure Agreement (NDA) is confidentiality and privacy. Your origin engineering company should sign an NDA.

This is to avoid leaking or sharing private information with your competitors or just third-parties in general.

A Non-Disclosure Agreement ensures that confidential information about your company and product is kept 100% private by the origin engineering company.

You may want to get an NDA under the following circumstances:

  • When presenting to your origin engineer the product design.
  • Sharing financial related information.
  • When familiarizing the origin engineering company with your marketing strategies and customer information.

By no means should the origin engineering company violate the terms of the NDA.

What Is The Standard Lead Time For Origin Engineering?

To run a successful origin engineering operation lead time dedication is very crucial.

There is a set lead time that your manufacture should be able to adhere to and should also track orders.

In event an order is delayed, the manufacturer and team should follow up on the reasons why so as to avoid them in the future.

You should aim for at least 90% punctual delivery rates for orders in origin engineering works.

What Are Some Of The Pitfalls Of Origin Engineering And How Do You Avoid Them?

  • Miscommunication- it is common for some parties to stop or reduce communication once they sign the contract.
    This should not be the case.
    Both parties should stay in constant communication in order to align expectations, follow up on the progress and for transparency purposes.
  • Lack of oversight- You should follow up regularly on how the manufacturing process is going. Also give and ask for feedback on a regular basis.
  • Failure to discuss important expectations, e.g., deadlines and quality expectations- you should avoid this at all costs.
    You should communicate clearly to your origin engineering partner the standards you expect them to meet to avoid future mistakes.
  • Settling too quickly- you should understand what your needs are and you should prioritize them when selecting an origin engineering company.
  • Hidden/ unexpected costs- the main reason for seeking origin engineering services is always to reduce costs.
    Make sure to cover all discussions concerning costs; expected and unexpected with your origin engineering company.
  • Overlooking risks- ensure that you are aware and well informed on risks you are likely to encounter and how to solve them.

What Is The Future of Origin Engineering?

As a strategy to reduce costs and increase efficiency, there is no doubt that companies are going the origin engineering way.

Top manufacturing companies know that origin engineering puts them at an advantage over their competition.

This is because they have access to the best infrastructure, latest technology and skilled labor that might not be available locally.

Origin engineering provides the manufacturer with increased productivity, flexibility and cost efficiency.

In case you’re looking for any manufacturer from China, BanSar has a database that will link you with the right factory.

For any questions or inquiry, contact us now.

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