Automated Identification Logic
|Determine product's Trade Agreement potential utilizing inputs from product sourcing, origin information, HS classification and others|
|Update identification when any input factors are changed|
|Configure agreement identification based on trade lanes, effective time periods, future plans and other parameters|
Global Product Master
|Sourcing level based on multi-supplier relationships, country of origin and manufacturing information|
|Manufactured bills of material (BOM) based on manufacturing facility and potential destination locations|
|Identification can be based on origin or destination country|
Import and Export Transactions
|Identify agreements based on specific transaction movements|
|Leverage information for existing claim information, claim support and document generation|
Trade Agreement Identification
Issues and Challenges
Hundreds of trade agreements are available for preferential duty treatment when importing or exporting products. The benefits of identifying an agreement include preferential rates, lower trade barriers, and improved supply chain performance.
The challenge of identifying available agreements can be time-consuming and labor intensive, especially when done manually. The rules surrounding agreement identification are complex and identification criteria includes the import and export country, transshipment rules, product origin and classification information. Each product will have different agreement eligibility as these factors differ, and individual products themselves can have different eligibility based on multi-sourcing relationships.
How Amber Road Can Help
Amber Road's trade agreement identification capabilities utilize information from the Global Product Master, supplier relationships and import/export transactions to accurately determine potential agreements available for making a preferential claim. The initial identification provides a starting point for importers and exporters to begin the process of further analyzing the product's true eligibility. This can be managed manually, or fully automated using the Amber Road Trade Agreement Management solution.
Free trade agreements such as NAFTA, CAFTA and others represent an attractive opportunity for exporters to grow their business overseas by making their products more affordable in growing markets. And for importers, FTAs allow them to dramatically lower the duties and taxes they pay.
Today there are more than 500 free or preferential agreements around the world for companies to use.
“By automating the NAFTA qualification process, generating accurate trade documentation to maintain export compliance, and taking advantage of preferential duties, we save $1.2 million in duties and taxes.”
Project Manager Global Logistics, Trade and Compliance
Global Trade Minute #3 - Duties versus Tariffs
While often used interchangeably, duties and tariffs are not the same. Take a minute to learn the difference -- it will help you identify cost savings opportunities within your supply chain!