One of your ideas has been delivered from your suggestion.Support For Tolerance When Qualifying for a Trade Agreement

This feature enables you to set a tolerance on the trade agreement to be used during trade agreement qualification. For rules of origin types requiring calculations like regional value content and de minimis, GTM can take into account a calculation tolerance when qualifying finished goods for trade agreements. This is to account for small changes in costs/values like exchange rate fluctuations. You can configure this tolerance on each trade agreement in the "Increase Originating Content Requirement by %" field in the Rules of Origin Formulae grid. For example, if the calculation tolerance percentage is set to 2% and the Rules of Origin Rule Code is:

  • Regional Value Content based on net cost must be 25% or greater (RVCN_25GE), GTM adds 2% in the logic so that the Regional Value Content based on net cost is 27% or greater (RVCN_27GE) during qualification calculations
  • De Minimis must be 10% or less (DMN_10LE), GTM subtracts 2% in the logic so that the de minimis using during qualification calculations is 8% during qualification calculations

Trade Agreement with Increase Originating Content Requirement by %

Trade Agreement with Increase Originating Content Requirement by %

Once you've defined the tolerance on the trade agreement, GTM uses this data when qualifying your items for trade agreements. In the Qualification Report > Qualification Summary, you'll see when a tolerance has been defined. In this example, you specified an Increase Originating Content Requirement by % of 5% for regional value content based on net cost (RVC - NC) and an Increase Originating Content Requirement by % of 10% for de minimis.

Qualification Report

Qualification Report

Business Benefit: This feature increases qualification accuracy by allowing small value fluctuations — such as those from exchange rates — to be considered during trade agreement qualification, reducing the risk due to minor cost changes, and supporting smoother cross-border trade compliance.

Steps to Enable and Configure

Edit the trade agreement where you want to define a tolerance and enter a value in the "Increase Originating Content Requirement by %" field.

Key Resources

For more information on qualification, refer to the GTM How To/Configuration Topic called "Trade Agreement Qualification".