Relocations of production equipment.

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  • Relocations of production equipment are not only a technical-organizational challenge, but also relevant from a tax point of view.

    orca automatically checks relocation requests for tax admissibility. Relocation requests can also be pre-audited. Further tax treatment is carried out as part of an audit workflow in cooperation with the OEM's tax departments.

    Approval or rejection of the relocation application with alternatives to relocation, if any, is critical to subsequent relocation implementation.

    Relocations are planned by the contractual partner or subcontractor in orca for execution; tranches or partial relocations are also possible here. The completion of the relocation is documented in orca. orca automatically generates necessary documents (such as a pro forma invoice).

    1. Contract partner submits relocation request with the affected production equipment.

    2. Tooling manager at the OEM organizes internal approval. Control departments are integrated via orca.

    3. Tooling manager at OEM approves or rejects, with reasons and alternative procedure if necessary.

    4. Contract partner is informed about the approval and plans the implementation in cooperation with subcontractors (future operator of the production equipment), if applicable.

    5. Future operator of the production equipment documents the execution of the relocation (photo check in at the destination) and confirmation of arrival.

    6. Each completed relocation tranche is automatically documented with a pro forma invoice and processed in the OEM's systems.

  • Involved in the relocation process are:

    • Tooling coordinator of the contractor: requesting relocations and responsible to the OEM for the implementation, establishing the procedural requirements (e.g. perform inventory beforehand).

    • OEM's tooling manager: review of relocation requests, internal organization of approval and agreement of alternative solutions in case of rejection.

    • OEM tax departments: audit from a tax perspective, identify alternative courses of action.

    • Future operator: Documentation of the arrival of the production equipment ("check-in").

Relocation

With the relocation process on orca, relocations of production equipment are requested, checked, approved and the execution documented.

Relocation process explained (EN).

Relocation explained (EN).

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Relocation at the BMW Group

  • From 03.05.2023 onwards, all future SBM relocations that have not yet been communicated to BMW must be applied for via MyTools/orca.

    Approval for the relocation of SBM purchased parts will be made exclusively through MyTools/orca, for all affected invoiced production equipment listed in MyTools/orca, regardless of any general relocation approval granted elsewhere (via the approval letter relocation).

    Unannounced relocations or relocations carried out in deviation from a permit may give rise to claims for damages and the risk for BMW and the supplier of becoming involved in criminal proceedings.

    If further means of production or production and delivery locations are affected in their entirety by the relocation, the supplier shall inform the specialist purchasing department of this independently of MyTools/orca.

    The relocation process for SBM is introduced in two sections:

    • Section 1: Application for relocation until overall approval, implementation from 03.05.2023.

    • Section 2: Implementation of approved relocations, from 01.07.2023.

  • Please submit relocation applications as early as possible, at least six months in the case of a negative pre-screening result.

    Please note: A relocation request requires

    • A confirmed status of the production equipment in orca, through an ABL or inventory.

    • Production equipment with an invoice posting.

    • complete manufacturing equipment data: Dimensions, weight and (new for relocation) customs tariff number. Customs tariff numbers are available via customs tariff numbers.com an example of a number is 82073010 for press tools for metalworking (area 8207).

    Please contact the inventory office orca support for inventories of affected production equipment.

    The status of the relocation request is visible to you in MyTools/orca.

    Please note the justification and, if necessary, additional measures in case of rejection. It may well be that although the relocation of the production equipmentis not possible in the tax sense, the entire project is feasible, only under different conditions (e.g. new purchase).

  • Dialog events are offered internally at BMW for the relocation process. More information, instructions, videos, etc. can be found on the MyTools homepage.

    As of 03.05.2023, the tax pre-audit is also implemented in LiNuM for resourcing processes. The integration of the tax departments will continue to take place via the internally known addresses.

    Please note that LiNuM relevant relocations may not be performed without a link to the LiNuM process in MyTools. This link must be established by the specialist purchaser.

Flowchart of the approval process for the relocation of production resources, divided into green and non-green cases. On the left are steps for green cases: Submit relocation request, link to BMW internal process, tax review, and relocation authorization. On the right for non-green cases: Submit relocation request, link to BMW internal process, tax review, show alternatives, and select alternative. Symbols and descriptions support each step.
Click instructions relocation (for suppliers)
Proof of delivery (confirmation of arrival)
Infographic for preliminary tax assessment based on traffic light logic with three scenarios: green ('OK'), black ('Only new procurement possible'), red ('Individual solution necessary'). Descriptions explain tax law permissibility, prohibitions and recommendations for action in the event of relocation.