d) Component Substitution -- When we deal with oversea customers, the advantage for us and our customers are the parts and component that we purchase in Local Market to gain more advantage. For example, Connectors, Batteries, Switches etc. This kinds of parts are very easy to reduce the cost that better than some of the IC that come from one manufacturer but distribution and handle by different agents that located in different territories. We have to ask for the suppliers to see their parts is no problem that if we build into the product for (i.e.) US or European market or not. We do not use the substitution items but infringe the patent to get the trouble for us. So this kinds of suppliers have to guarantee for us no patent problem for us in future for the market that we will sell to.
Some other substitution or replacement items such as Packing boxes, blister and screws etc... that we will use local vendors too.
Finally, one we change the parts and or component. we need to provide the specification and samples for the customer approval before hand. After approval then we can use this kinds of material for their products.