What is meant by Preferential calculation?
The term "preference calculation" refers to a computational method for determining the origin characteristics of a product within the framework of preferential agreements. It is used to determine whether a good meets the requirements for preferential tariff treatment when imported into a partner country.
Typical software functions in the area of "preference calculation":
- Automatic calculation of origin characteristics based on bills of materials and material master data
- Management of preference rules and customs tariff numbers
- Simulation of preference calculations for different scenarios
- Creation and management of supplier declarations
- Generation of preference proofs such as movement certificates
- Archiving and documentation of preference calculations for audit purposes
Examples of "preference calculation":
- Calculation of the value share of non-originating materials
- Determination of the value added in the country of manufacture
- Verification of compliance with list rules for specific commodity codes
- Calculation according to the worst-case principle for fluctuating prices
- Preference determination for composite products with many individual parts
- Long-term supplier declaration for regularly supplied goods
