PEC Modules Country of Origin Determination

What is the challenge?

There is increasing global pressure for companies to evaluate and report on the country of origin of their products. Mandatory Origin marking is prevalent in food products and mostly voluntary for everything else, but is gaining more exposure in EU and other jurisdictions. Identifying the correct country of origin for your products can also make the difference between qualifying for preferential rates under free trade agreements or fines within your supply chain. The consequences of making an incorrect assumption that you qualify under certain rules of origin can be substantial.

To find out how Compliance Map can record and manage Country of Origin data, book a demo today.

Country of Origin Determination

How can Compliance Map help? How can we help?

The Compliance Map solution can automatically collect country of origin data from your supply chain, apply rules of origin such as substantial transformation and Regional Value Content models to roll this through your Bill of Materials (BOM) and provide a calculated and accurate Origin Determination.

When calculating the Country of Origin, several different Origin Models can be applied. Where Substantial Transformation is needing to be evaluated, the Compliance Map system will automatically review tariff changes based on BOM and supply chain information and mark products appropriately.

As a criteria that expresses "Substantial Transformation", Regional Value Content rules can be applied (such as with ASEAN origin legislation). Non-originating and originating materials are aggregated based on origin data and rolled-up to determine whether the test passes a Value Content threshold (such as 40%).

Compliance Map will automate every step of your origin evaluation process, integrating with source data, such as your PLM/ERP and warehousing systems so you always have the most up-to-date, accurate and traceable origin determination.

Why is it difficult to get origin marking right?

Rules of Origin are used to determine the nationality of a given product. There are legal consequences to making an incorrect origin determination and marking your products. This can result in fines and other penalties. So why is it a challenge to get this right? The rise of globalisation, supply chain complexities, multi-sourcing and production of goods in multiple stages can make tracking down the origin of items and raw materials tricky. Components used in assembly can be sourced from around the world and often you may need to trace this information several tiers down your supply chain and also factor in assembly and manufacturing locations.