Mapping Rules of Origin

Each preferential agreement contains a protocol that specifies the conditions under which a product is regarded as an originating product of the signatory states.

In the agreements, the requirements for the sufficient working or processing of the materials, referred to as rules of origin, are arranged in lists in tabular form. The reference level of the rules of origin is the HS chapter or HS heading of the product whose originating status is to be established.

Note

In the EU's Comprehensive Economic and Trade Agreement (CETA) with Canada, in the EU-Japan-EPA and in the TCA, many rules of origin refer to the HS sub-heading of the products.

In preference processing, SAP GTS determines for each product whether the specifications of the preferential agreements are met with regard to the sufficient working or processing of non-originating materials. Therefore, the texts in columns 3 and 4 of all list entries relevant for your products must be "translated" into Customizing settings.

Rules of origin are integrated into rule sets in SAP GTS. The delivery Customizing contains the rule set PANEG (Rule Set for Pan-European Agreement (EC/EFTA/CEEC)) for mapping the rules of origin in the agreements the EU has concluded with other countries (menu path: SAP Global Trade Services, edition for SAP HANA → Preference Management → Define Rule Set).

You can find the procedure selection for mapping rules of origin in preferential agreements of the EU in the delivery Customizing by choosing SAP Global Trade Services, edition for SAP HANA → Preference Management → Define Rule Set Attribute for Preference Processing (Manual) → Define Procedure for Rule Sets with EU-Based Concept.

The contents of columns 3 and 4 of a list entry are represented in SAP GTS in the form of procedure groups. A procedure group contains one or more procedures of a rule set (menu path: SAP Global Trade Services, edition for SAP HANA → Preference Management → Define Rule Set Attribute for Preference Processing (Manual) → Define Preference Rules - Group Together Procedures).

Note

The only comparison method relevant for rules assigned to the PANEG rule set is Transaction Value Method. You therefore do not have to specify a comparison method in the Comp. Method field.

In column 1 of the lists of sufficient working and processing, many entries for HS chapters or headings are prefixed with "ex" (Latin for "from"). Therefore, the rules of origin in columns 3 and 4 do not apply to all products of the respective chapter or heading, but only to the products described in column 2.

If you create several procedure groups to map the contents of a column in the list of sufficient working or processing activities, you must group these procedure groups together in a rule group. You can define rule groups in the same way as procedure groups within a set of rules. In Customizing, choose SAP Global Trade Services, edition for SAP HANA → Preference Management → Define Rule Set Attribute for Preference Processing (Manual) → Define Preference Rules - Link Rule Groups.

In the first example, it must be taken into account that the rules of origin in columns 3 and 4 do not refer to all pumps of heading 8413, but only to rotary positive displacement pumps. Since these rules of origin are often used in EU agreements, they were mapped in the training system in a neutral form as procedure groups ZPG01 (column 3) and ZPG02 (column 4).

To map the restriction in the addition "ex" before heading 8413, a separate procedure group ZPG06 was created with the Condition procedure, and the condition ZCONDEX8413 previously defined in the rule set PANEG was assigned.

In the next step, the rule groups ZRG01 and ZRG02 were created to assign the procedure groups ZPG01 and ZPG06, and ZPG02 and ZPG06 respectively. Both procedure groups were each linked with a logical AND.

To complete the rule set, you still have to link your procedure groups and rule groups with HS chapters, headings, subheadings, or CN codes (menu path: SAP Global Trade Services, edition for SAP HANA → Preference Management → Define Rule Set Attribute for Preference Processing (Manual) → Assign Rules to Agreement and Classification).

You can display the mapping of the rules of origin in Customizing using the Display Preference Rules app.