Small Equipment Manufacturer Reenters the Mexican Market

Alkar Rapid Pack, (ALKAR) is located in Lodi, Wisconsin. They have been in business for nearly 20 years, employing approximately 150 individuals. Alkar manufacturers an extensive line of continuous thermal meat processing systems for cooking, smoking, chilling and pasteurization. 

Alkar was contacted by a potential partner in Mexico who sought to bring its food processing equipment to the market.  Alkar previously exported there but left the market due to a four-year dispute with the Mexican Customs Agency regarding tariff codes and free trade agreement claims that resulted in a customs audit.   Unsure of how to proceed and hesitant to re-enter the market, ALKAR reached out to Commercial Service (CS) Wisconsin for guidance.

The local trade specialist had expertise in customs laws/regulations, the export process, and free trade agreements.  She counseled the client on the importance of complying with foreign import regulations to avoid custom audits.  The client was shown how to determine the proper tariff code and how to correctly use the USMCA free trade agreement to their benefit. 

Alkar successfully exported $3.2M of equipment to this new Mexican partner.  The in-depth counseling provided by the local trade specialist gave them the confidence to reenter the Mexican market.        

ALKAR was able to add several union skilled labor positions to their manufacturing facility as a direct result of the CS assistance. 

”I would like to thank you for assisting ALKAR with USMCA questions and proper equipment classifications.  All too often people are critical of our governmental agencies and in many cases it’s well deserved. However, the timely and completeness of information you provided ALKAR was far better and significantly less expensive (FREE) then what was received from other sources. ALKAR spent years of effort, over $300,000 in direct expenses and $200,000 in indirect costs with our internal staff, lawyers, consultants and other so-called experts, yet did not receive the quality and accuracy of information you provided in a few days” - Alkar Rapid Pack