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Bill of Material Qualificationn
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Bill of Material Qualification
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Bill of Material Qualification Issues and Challenges
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Exporters are responsible for providing complete and accurate origin information
to their customers for compliance purposes and free trade agreement (FTA)
eligibility. For those exporters that manufacture finished goods, this can be
particularly complex, since raw materials may come from numerous suppliers
worldwide.
The rules of origin of each FTA
determine preferential treatment eligibility, so each product must be analyzed
for its conformance to those rules. To perform the analysis, it is necessary to
break down a product into parts or ingredients - more commonly known as a bill
of materials (BOM). The BOM gives a complete and hierarchical listing of any raw
materials, sub-assemblies, components, or ingredients and the quantities and
costs used in the product.
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Challenges include:
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Entering complex BOMs that
may contain thousands of components into a qualification system |
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Understanding and applying the complex
rules of origin to BOM line items for each FTA of interest |
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Determining whether the product qualifies
for duty preference using several evaluation methods per FTA and HS |
How Amber Road Can Help
Amber Road speeds up the BOM analysis process by
enabling direct import of these complex documents from the manufacturer's BOM
management system (potentially an ERP, engineering, or other specialized system)
or via XML or Excel.
Amber Road's trade agreement management solutions help
exporters automate the analysis of BOMs. It does this by applying the relevant
rules of origin and automatically assessing tariff shift, wholly obtained
checks, several variations of regional value content, cumulation logic, and de
minimis. Amber Road analyzes each line item of the BOM to determine whether the
product satisfies the rule criteria. The outcome is a summary qualification
report for the finished good, and a detailed account of how each component fared
against the rule. The results are then posted to the Global Product Master where
trade agreements can be managed centrally.
The qualification system is
scalable and supports multiple trade agreements. A content plugin for each
target FTA contains the claim details, documents and rules of origin for each
target agreement. These rules are constantly updated and maintained in our Global Knowledge® database. Once the framework is in place, additional plugins
can be added seamlessly.
Qualification results are
tied back into the product record for a complete, centralized view of
each item.
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Features |
Benefits |
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Bill of
Materials Management |
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Direct import of multi-level BOMs from ERP, manufacturing, and WMS systems |
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Automatic calculations and analysis for
multiple trade preference programs simultaneously |
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Multiple
Qualification Rules |
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Rules of origin for numerous free trade
agreements |
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Tariff shift |
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Various regional value content (RVC) methods |
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Cumulation or double substantial
transformation |
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De minimis |
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Archive and Audit |
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Storage and retention of BOM analysis results |
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