Recalculate and revoke customer supplier declarations

At the turn of the year, companies must renew their long-term supplier declarations (LTSD) - on the customer side as well as on the supplier side - for European companies. For the year 2022 or the years 2022/23, customers will again request supplier declarations from the supplying companies. These will then be issued on the basis of the preference calculation. In order to do this legally compliant and efficiently, M.SecureTrade Preference Management helps with the functional area "Customer Supplier Declaration" (CD). This was recently expanded to include additional functions, such as the revocation of supplier declarations. The effort required for checking and revoking supplier declarations that have already been issued and are still valid is thus significantly reduced.

This is why revocation is so important

Only EU deliveries of goods are affected. Companies must declare to their customers in the form of long-term supplier declarations for a certain period of time that the goods supplied are of European origin. In the case of subsequent export to non-EU countries, this origin must be proven in order to be able to claim customs duty reductions. All valid customer supplier declarations must be recalculated regularly. Why? After sending a customer-side long-term supplier declaration for delivered materials to their customers, the preconditions that led to the individual preference status statements can change at any time, e.g. the SD validity for primary products may have expired or other primary materials may have been used. Companies are then obliged to notify the customer of this change or to declare materials of a valid customer-side long-term supplier declaration invalid. This is also called revocation. The revocation can also be carried out for individual goods. In this case, the original LTSD remains valid for the remaining goods mentioned. The revocation must be documented in connection with the originally submitted declaration.

How the revocation works

The recalculation runs automatically. All valid supplier declarations and their materials are checked again against the current data and recalculated. At best, nothing has changed in the status of the materials. If this is not the case, however, i.e. materials are no longer eligible for preference, the customer's supplier declaration for the materials no longer eligible for preference must be revoked. The customer will then be notified by email as to which materials are no longer eligible for preference. An adjusted LTSD form is finally created. Another advantage: all calculations and recalculations can be found transparently in a CD document in the SAP system. This means that the life cycle of a supplier declaration can be called up at the click of a mouse, even during external audits.

M.SecureTrade Preference Management

Mercoline offers a solution that automates the issuing of supplier declarations for suppliers and customers. With M.SecureTrade Preference Management, preference statements for received materials can be stored in the SAP system and preference statements for delivered materials can be determined in a matter of seconds. M.SecureTrade Preference Management is the alternative to complex SAP preference management solutions or non-SAP solutions.

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