Trade Agreement Qualification: Overview

The trade agreement qualification process helps you to determine if the finished good qualifies for a trade agreement based on the trade agreement Rules of Origin. Here are some of the high-level steps involved in trade agreement qualification:

• Define Trade Agreement and Rules of Origin: Create trade agreements and rules of origin or download them from a third-party content provider.
• Define Formulas: Define necessary formulas that are used as part of the qualification process.
• Define Trade Agreement Additional Data: Set up additional details for a trade agreement, like Rollup Allowed, Regional Value Content Methods, Dependent Formulae and Reference Numbers supported RVC Methods, dependent formulas, and reference. 
• Configure Qualification Logic Configuration: Set up qualification logic configuration details for looking up item origin and item value for your finished good and its components.
• Define Preference Criteria: Set up preference criteria which can be automatically assigned during qualification.
• Define Item Structure (Bill of Material): Create an item structure or sync the item structure (BOM) via integration from an external system.
• Define Item Origins: Define an item origin for finished goods and their components/sub-components.
• Define Item Values: Define item value details like material, labor, overhead costs, net cost, etc. or sync via integration from the external costing system.
• Define Item Classification: Define HS classification which may be used during the qualification process.
• Perform Qualify for Trade Agreement: This action helps to qualify an item for a trade agreement by evaluating the applicable rules of origin. You can run qualification from the item-based objects or from trade transaction lines. Depending on where you trigger qualification from, manual actions, agent actions and/or a process within Process Management is available.