Accumulate Originating Content from Non-Originating Purchased Goods

This feature enables you to accumulate originating content from non-originating components when qualifying your finished goods for trade agreements. For example, a component cost may be $100 but only 25% is originating. The component can contribute $25 ($100 x 25%) to the finished good. To enable this enhancement:

  • Ensure the GTM property gtm.roo.leafComponent.originating.considerQualification is set to 'true'
  • Mark the Allow Partial Credit checkbox on the trade agreement
  • Populate the Regional Value Content Percentage on the item qualification

If configured and the component country of origin belongs to the member region and the Qualified Status = NOT QUALIFIED, the Regional Value Content Percentage on the item qualification is used to calculate the Value of Originating Material (VOM) of the finished good.

GTM Property Configuration

To use this feature the existing GTM property gtm.roo.leafComponent.originating.considerQualification must be set to 'true'.

  • If the property is set to 'true', the qualification status is considered along with the country of origin to check if a component belongs to a trade agreement. In addition, the regional value content percentage of non-originating components is used in qualifying the finished good for a trade agreement. (This is the default value.)
  • If the property is set to 'false', only the country of origin is used to check if a component belongs to a trade agreement. The regional value content percentage for non-originating components is not used in qualifying the finished good for a trade agreement.

Allow Partial Credit field on Trade Agreement

A new Allow Partial Credit checkbox is available on the trade agreement. This field enables you to specific if a trade agreement supports the process of accumulating originating content from non-originating components. This checkbox needs to be marked to enable this feature.

Allow Partial Credit field on Trade Agreement

Allow Partial Credit field on Trade Agreement

Regional Value Content Percentage on Item Qualification 

The existing Regional Value Content Percentage field on the item qualification for each component is used to calculate the VOM of the finished good. You can populate this field when the percentage is less than 100%. For example, the handle bars of a bicycle have 25% originating content. When calculating the finished good qualification, GTM uses 25% of the cost of the handle bars in the VOM calculations.

For purchased components, you can solicit the Regional Value Content Percentage from suppliers on the campaign line. Using a data configuration, you can copy this information from the campaign line to the item qualification when a campaign line is approved.

GTM will use the Regional Value Content percentage of a component if:

  • Regional Value Content Percentage on the item qualification is populated
  • Component Country of Origin is a Member Nation of the trade agreement
  • Qualified Status = NOT QUALIFIED for the component

Item Qualification

Item Qualification for Component with Partial Credit

Once you qualify the finished good, the Qualification Report displays the results including the Regional Value Content Percentage. The report also indicates if Partial Credit is allowed by the trade agreement.

Qualification Report using Partial Credit

Qualification Report using Partial Credit

This feature enables more robust support for scenarios where a component partially originates for a trade agreement. By adding additional originating content to the qualification calculations, your finished goods can more easily qualify for trade agreements.

Steps to Enable

To use this feature:

  • Set the GTM property gtm.roo.leafComponent.originating.considerQualification to 'true'.
  • Mark the Allow Partial Credit field on the trade agreement.
  • Where applicable, populate the Regional Value Content Percentage on the Item Qualification. For the percentage to be used, the component Country of Origin must be a Member Nation of the trade agreement and the Qualified Status = NOT QUALIFIED.

Key Resources

For more information on using Regional Value Content Percentage in the supplier solicitation process, please refer to the 'Support Regional Value Content Percentage in Supplier Solicitation Process' topic in this What's New document.

For more information on supplier solicitation, please refer to the GTM How To/Configuration Topic called Supplier Solicitation.