Origin Calculation

Overview

There are already more than 400 ratified free trade agreements (FTAs) around the world to enhance trade among the participants and offer potential duty savings to companies, yielding a competitive advantage. However, companies can only leverage such savings potential and competitive advantage by compliantly following a number of complex rules of origin and maintaining detailed documentation. This requires them to establish a process for the calculation of the origin of goods which conforms to the law and auditing requirements in order to avoid possible fines and future unplanned costs.

This is where MIC's Origin Calculation System (MIC OCS) supports you! It provides the necessary tools to manage the entire process  for a multitude of FTAs. Starting with automated solicitation of supplier declarations using an innovative supplier web portal followed by an optimized calculation of the origin of goods based on multi-level bill of materials resulting in the creation of the appropriate certificate of origin documentation. Each process step is traceable via a complete audit trail.  Changes in the originating status of the goods are reliably detected, affected goods are recalculated and thus compliance is maintained on an ongoing basis.

MIC OCS helps to ensure that you enjoy the benefits offered by FTAs and improve your competitive position.

Efficient management of supplier declarations
  • Workflow-based allocation of suppliers to selected persons in charge
  • Global standardization of the process for the management of supplier’s declarations
  • Automatic collection of key information for supplier’s declarations through interfaces to the company’s ERP system(s)
  • Manual or automated request for supplier’s declarations - via web, e-mail or paper
  • Web portal for direct data entry and/or file upload by the supplier, including the option for the supplier to expire or modify specific part origin information as well as to enter additional information (e.g. export control classification, tariff number)
  • Automated intelligent follow-up process incl. reminder mechanism
  • Prioritization of supplier requests based on the part value as well as the frequency of use in different bill of materials

 

Compliant eligibility for free trade agreements
  • User accessible configuration of the specific rules of origin for individual FTAs
  • Automatic application of the tolerance (“de minimis”) for tariff shift rules
  • Option for use of accumulation rules, as allowed by the individual agreements
  • More than 90 FTAs (NAFTA, EU, Asia-Pacific region, South America, etc.) already in productive usage for the origin calculation process
  • Support of the American Automobile Labelling Act (AALA)
  • Bundling of FTAs in the form of a master FTA (e.g. one EU master FTA for many similar EU FTAs) allowing one calculation to cover multiple agreements
  • Flexible and customized adjustment of rules of origin (e.g. increase of the percentage of the regional value rule for risk reduction)
Optimized origin calculation
  • Top-down, bottom-up as well as advantage calculation
  • Determination of the preferential origin of goods as well as the origin under commercial law (for individual products or product ranges)
  • Automated calculations for the origin of goods both for flat and comprehensive multi-level bill of materials
  • Configurable defaults and tolerance thresholds are possible
  • Calculation of the threshold value (minimum sales price)
  • Support of min/max price logic
  • Cross-factory and cross-system calculation for the origin of goods 
Permits supplier declarations for customers
  • Automatic re-calculation in the event of changes to supplier declarations, including reissuing documents when a change to originating status occurs
  • Transaction-based calculation also for configurable bill of materials
  • Consideration of different validity periods for documents under different agreements
Process optimization
  • Direct transfer of multi-level bill of materials from ERP systems as well as from engineering or production systems
  • Upload of supplier information, part data and prices directly from purchasing, ERP and/or warehouse management systems (e.g. SAP-MM)
  • Integration with other MIC modules for full process functionality
  • Return interfaces of the calculation results to ERP systems for subsequent processes
Detailed documentation
  • Detailed reports for each origin calculation
  • Search and analysis of non-certified products
  • Complete archive for audit purposes
  • Data & predictive analytics to identify cost saving opportunities
  • Manufacturing site and sourcing simulations to support cost optimization and competitive advantage
Benefits
01 More than 90 FTAs

already in productive usage for origin calculation to  benefit from saving potentials and competitive advantage

04 Supports management decisions

with respect to cost optimization and competitive advantages using simulations

02 Compliant origin calculation

processes that avoid possible fines and unplanned costs in advance

05 Full process functionality

due to Integration in MIC's central classification system, global customs management and global trade content service modules

03 Innovative supplier web portal

for automated obtaining of supplier declarations with direct data entry by the suppliers themselves

06 Optimized origin calculation

due to an efficient management of supplier declarations and correct use of FTAs

Resources
Central Classification | Origin Calculation | 28 July 2017
Origin Calculation | 11 July 2017
News | Origin Calculation | 29 August 2016
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