Trade Agreement Configuration

The trade agreement is content that you can download from a third-party content provider. Certain data is populated on the trade agreement including information in the header and the partners grid. You can then add additional information including:

• Rollup Allowed – Select this check box to indicate if the trade agreement supports the rollup principle, also known as absorption. When marked, GTM will first try to qualify the finished good using the originating and the non-originating status of the components.   If the qualification does not pass, GTM will then apply the rollup principle to qualify. As part of the rollup, the value of the non-originating inputs contained in the intermediate materials which have acquired originating status is counted as originating content in the calculation of the value add criteria. 
• Regional Value Content Methods – You can list the regional value content methods that apply for the trade agreement. Values include NET COST, TRANSACTION VALUE, BUILD UP and BUILD DOWN.  
• Rules of Origin Formulae – You can list the Formula IDs for the rules of origin that are valid for this trade agreement. If you do not specify the rules of origin formulas on the trade agreement, GTM will use the formulas that are associated with the Rules of Origin Rule Types.
• Dependent Formulae – You need to specify any formulas that will be used by the qualification engine. This would include formulas for:
  • EXTENDED VALUE
  • COMPONENT EXTENDED VALUE 
  • NET COST
  • TRANSACTION VALUE
  • ADJUSTED VALUE 
  • EXW VALUE
• Remarks – Specify any additional remarks that pertain to the trade agreement.
• Reference Numbers – You need to specify 2 reference numbers which tell GTM the formulas used to calculate extended cost. 
  • RVC METHOD1-EXTENDED VALUE FORMULA – Identifies the formula that is used to calculate the extended cost of the finished good. This is the same formula as defined in the Dependent Formulas grid. For example, create a formula with an ID of EXTENDED VALUE. In the Reference Numbers grid, specify the Reference Number Qualifier ID = RVC METHOD1-EXTENDED VALUE FORMULA and the Reference Number = EXTENDED VALUE. 
  • RVC METHOD1-COMPONENT EXTENDED VALUE FORMULA – Identifies the formula that is used to calculate the extended cost of each component. This is the same formula as defined in the Dependent Formulas grid. For example, create a formula with an ID of COMPONENT EXTENDED VALUE. In the Reference Numbers grid, specify the Reference Number Qualifier ID = RVC METHOD1-COMPONENT EXTENDED VALUE FORMULA and the Reference Number = COMPONENT EXTENDED VALUE.

Logic Configuration 

You can set a logic configuration with the Logic Configuration Type of 'GTM TRANSACTION CONFIGURATION', which helps you to drive the logic of the qualification engine based on your business scenarios. GTM ships with an out-of-the-box logic configuration that you can use. Or you can copy it and make changes based on your business needs.

The following parameters in the Logic Configuration Type of 'GTM TRANSACTION CONFIGURATION' are used by the qualification engine:

• Constraint Sets for Identifying Related Objects
  • ITEM ORIGIN FOR TRANSACTION LINE – This constraint set is used to match trade transaction lines with the item origins associated with the item on the line. 
  • ITEM STRUCTURE FOR TRANSACTION LINE – This constraint set is used to match trade transaction lines with the item structures.
• General – tells GTM which qualifiers to use when running qualification and other actions. 

Once you have configured your logic configuration, you can assign it to a Trade Transaction Type. This enables you to have specific configurations for different types of transactions such as export transactions and import transactions. 

Note: For trade agreement qualification, the logic configuration type of GTM TRANSACTION CONFIGURATION should be used. 

Preference Criteria Configuration

You can configure GTM to automatically assign the preference criteria to the item qualification as part of the trade agreement qualification process. Preference criteria provides details about how your finished good qualifies for a trade agreement and can be used on documents generated by GTM. For example, is it wholly obtained, does a product specific rule apply, is de minimis met and so on. 

You can create the preference criteria records as defined in the trade agreement. When you define the preference criteria, you can specify:

• Trade Agreement – enter the trade agreement that the preference criteria is related to.
• External Reference Code – identify the external code which can be used on documents.
• Priority – identifies the order given in the trade agreement document for preference criteria. If more than one preference criteria applies, this defines the order in which they are assigned.
• Related Success Codes – identify the Justification Code(s) associated with the preference criteria. For example, you can identify if the preference criteria is related to a regional value content method or another rules of origin rule type. 

When you trigger trade agreement qualification on your item-based objects, an item qualification record is created and/or updated. If the preference criteria can be determined, GTM assigns it and displays the Justification Code and Justification Description with more details.