Automated Identification Logic
|Determine product's trade agreement potential utilizing inputs from product sourcing, origin information, HS classification and others|
|Update trade agreement identification when any input factors are changed|
|Configure trade agreement identification based on trade lanes, effective time periods, future plans and other parameters|
FTA Qualification Analysis
|Direct import of multi-level BOMs from ERP, manufacturing and WMS systems|
|Automatic calculations and analysis for multiple trade preference programs simultaneously|
|Rules of origin for numerous free trade agreements|
Trade Agreement Rules
Issues and Challenges
Free trade agreements (FTAs) can be a source of significant cost savings for importers. However, many companies forego these benefits because of the effort to manually administer them.
The first step to leveraging FTAs is to determine which trade agreements a company may qualify for based on the products being shipped from certain countries, to certain countries. This requires a company to compare the product classifications for the goods being shipped with the associated rules of origin for each trade agreement. Today, there are over 500 free trade agreements worldwide.
For companies with assembled goods, this process known as 'qualification' can be particularly difficult. Complex bills of material (BOM) must be analyzed to ensure that a requisite percentage of the component parts that comprise the finished good have been manufactured in qualifying countries.
Once a company has identified the FTAs for which they are eligible, they must establish the appropriate procedures and documentation to administer them. This involves soliciting and receiving certificates of origin for the finished goods or component parts from their suppliers, proving that the goods were manufactured in qualifying countries. It also includes the ability to track shipments, reconcile and apply the reduced duty rates and prove eligibility in the case of an audit.
Without automation, FTA identification, qualification, vendor solicitation and administration can be very arduous, which is why so many companies miss out on the significant duty savings afforded by free trade agreements.
How Amber Road Can Help
Maximizing FTA cost benefits is one of the fastest and easiest ways to squeeze significant financial returns out of a company's global supply chain when done in an automated fashion. A dollar, yen, pound or euro saved in duties goes straight to a company's bottom line, which is what makes these FTA programs so appealing.
FTA identification and qualification is powered by our Global Knowledge® database of global trade content. Global Knowledge® contains the rules of origin, product classifications and duties and taxes for the major preferential trade programs.
With FTA information updated constantly by a network of In-Country Content Providers (ICCP) and trade specialists, Amber Road ensures companies can accurately determine which potential trade agreements are available for making a preferential claim. In today's global environment, the resulting FTA duty and tax savings can easily reach millions of dollars in savings annually.
Organizations buying or selling goods globally are overwhelmed with complexity. And the mountain of legalese and red tape required to establish and maintain compliance with government regulations.
Amber Road maintains the most comprehensive and robust database of global trade content, government regulations, and international business rules available today. We cover over 145 countries, roughly 95% of world trade making our trade content and content management process the best in the industry. We call it Global Knowledge® and it’s tightly integrated within our suite of global trade management software.
"As a multinational technology leader, screening is critical to our business. We selected Amber Road to help us comply with global export regulations because of its complete and up-to-date list coverage."
Director, Regulatory Compliance and Senior Counsel
RELATED BLOG POSTS
- Global Knowledge Advance Notification Twitter Roll-Out
- Video Series Chapter 7: Global Knowledge®
- Amber Road Adds Import Controls on EU Invasive Alien Species
- Webinar Q&A: The British Vote Brexit: How Will This Impact Global Trade in EU and US Companies?
- Amber Road Goes to Washington: USFIA’s “Trade is Fashionable” Symposium