Issue Certificates of Origin by Using Preference Processing Functionality in SAP BusinessObjects Global Trade Services 8.0

  • by Ravi Kalluri, SAP BusinessObjects Global Trade Services Consultant, Accenture Services Pvt. Ltd.
  • March 9, 2011
Learn how SAP BusinessObjects Global Trade Services issues certificates of origin or vendor declarations for claiming reduced customs duties on your products subject to North American Free Trade Agreement (NAFTA) or European Union (EU) trade regulations. See how the enhanced archiving capabilities for preference determination are used for audits. Also, learn what preference processing configuration settings have changed in SAP BusinessObjects Global Trade Services 8.0.
Key Concept
Preference processing (or preference determination) helps exporters meet the legal requirements for preferential customs treatment resulting in their goods getting eligibility for preferential treatment. Based on this documented eligibility for preferential treatment, the exporter’s customers can import these goods duty free or at a reduced import duty. This gives the exporter a decisive competitive advantage. Since the bills of material (BOMs) are the basis for preference determination, you have to carry out a separate preference determination run for each order item that contains a configurable product. The information for performing preference processing in SAP BusinessObjects Global Trade Services mainly comes from your feeder system (SAP ERP Central Component [SAP ECC]) through your SAP ECC documents.

Preference processing is part of the Risk Management module in SAP BusinessObjects Global Trade Services. This functionality helps you maintain compliance with all the legal requirements for customs preferences so your goods are eligible for preferential treatment. Preferential treatment allows customers to import goods duty free or at a reduced rate of import duty, giving a great advantage to the exporter.

SAP BusinessObjects Global Trade Services also helps you efficiently comply with trade agreements such as the North American Free Trade Agreement (NAFTA) or the European Union (EU). For example, you can manage the supplier’s declarations of origin more effectively in SAP BusinessObjects Global Trade Services. You can automatically upload complex rules of origin from third-party providers and easily print them. SAP BusinessObjects Global Trade Services complies with trade preference by maintaining and requesting vendor declarations, determining eligibility of products for preferential treatment, and issuing certificates of origin to the customers.

I will explain the enhanced archiving capabilities for preference processing in audits, the different configuration settings for preference processing, and how to check the preference log in a customs document for export and import processes. This article applies to SAP BusinessObjects Global Trade Services 8.0 as well as to prior versions.

Ravi Kalluri

Ravi Kalluri is an SAP BusinessObjects Global Trade Services consultant at Accenture Services Pvt Ltd. His focus is on the entire global trade area, including Compliance Management, Customs Management, Risk Management, and Electronic Compliance Reporting. He has an excellent understanding of SAP ERP logistics processes and their integration to global trade in a supply chain environment. His interests are networking, participating in conferences, and writing articles.

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