A Mexico EMS Company Name is Not the Origin

A Mexico EMS manufacturer will often ask the OEM to issue the purchase order to a Mexican company with a tax ID, local payroll, and local accounts, instead of the China parent. The EMS sales deck often treats separate books as proof a problem in China stays in China.

The name on the PO has to be the same name on the invoice, the name holding inventory and tooling, and the name to where accounts payable pays. A local close and a local bank account can still leave the Mexico company exposed to intercompany loans, component sales (e.g., source inventory release) from the China parent, and a management fee that empties the Mexico cash account without touching the purchase order.

USMCA is a claim about the goods and the invoice heading, whereas a Mexican balance sheet does not qualify the PCBA (or the finished unit).

Full article at ventureoutsource.com: Mexico EMS manufacturer and the OEM purchase order