Reduce Logistics Costs, Duties, Fees and Taxes

Certificate Management

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Issues and Challenges

Claims for preferential duty treatment under an FTA must be backed up by a preferential certificate of origin. A certificate is provided by the exporter to attest to where the item was grown or manufactured and that it is eligible for a preferential treatment under the respective trade agreement. Manufacturers must undergo a complex qualification process to determine origin.

While certificates are generally valid for a period of time, they may also be subject to revisions and amendments. For example, if a company sources a product from a different country, it would have to update its certificate of origin.

For an exporter handling thousands of products, managing certificates of origin, and their expirations, renewals and revisions is nearly impossible without automation. It is no wonder that so many perceive FTAs as being more trouble than they are worth.

Challenges include:

  • Identifying changes to preferential status and active certificates
  • Amending, republishing, and maintaining certificate versions
  • Storing and retrieving certificates for official or audit purposes
  • Tracking the renewal and expiration process for certificates

How Amber Road Can Help

Amber Road's Trade Agreement Management solution assists with the management of certificates of origin by linking them with products in the Global Product Master. FTA status are also maintained in the Global Product Master. This ensures that changes to a product's FTA statuses are automatically identified and prompt the generation of a new certificate.

If a new certificate of origin is required, the user can generate and republish it, while maintaining prior versions for audit purposes. If a change results in the product losing its FTA eligibility (e.g., a BOM changes), appropriate steps can be taken to contact customers, withdraw the certificate, and distribute a new one.

Because certificates are stored as separate records in the system with calculable data fields, they can also be queried and managed. For example, the annual renewal process becomes streamlined when expiration dates are tracked.

 

Highlighted Capabilities
  • Publish FTA certificates to customers
  • Associate certificates of origin with products stored in the Global Product Master
  • Track changes to product FTA status and amend/re-version new certificates as required
  • Generate accurate customer certificates once product eligibility is met
  • Electronically transmit documents to customers
  • Allow customers to create a request for a certificate and track the request through to completion

Duty Management

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.

Customer Testimonial: Benjamin Moore

Peter Shea, Senior Manager, Customs Import/Export Compliance at Benjamin Moore, discusses how they have automated the NAFTA qualification process with Amber Road.

Benjamin Moore achieved more progress in four months than in the past 15 years, making a huge impact on their business and impressing the COO. Interested in achieving those same results? Learn more about saving on duties through free trade agreements.

 

KEY CUSTOMERS

DonaldsonNCRXylem

“Using Amber Road, there is now higher awareness and consideration of preferential customs tariffs, which enriches our strategic decision making.”

 

In-House Legal Counsel
ABB

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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!

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