What is preference criterion in SAP SLL - Global Trade Services?

SAP Term: preference criterion

• Component: SLL

• Component Name: Global Trade Services

• Description: An indicator of preferential eligibility of goods in Certificates of Origin in the NAFTA countries. All goods qualifying for the NAFTA preferential treatment must fall into one of the six preference criteria A-F, whereof the following criteria A, B and C are the most commonly used: A: Goods must be "wholly obtained or produced entirely in the territory of one or more of the NAFTA countries". B: Goods which are produced entirely in Canada, the United States, or Mexico and satisfy one of the rules set out in the Annex 401 of the NAFTA Agreement C: Goods must be produced entirely in the territory of one or more of the NAFTA countries using only originating materials.

Smart SAP Assistant

• Key Concepts: 
  Preference criterion is a feature of SAP Global Trade Services (GTS) that allows users to define and manage the criteria for determining the preferential origin of goods. It helps users to determine the origin of goods based on the rules of origin set by the World Trade Organization (WTO). This feature also helps users to comply with the rules and regulations of international trade. 
  
  How to use it: 
  In order to use preference criterion, users must first define the criteria for determining the preferential origin of goods. This can be done by setting up a preference criterion in SAP GTS. Once the criteria is set, users can then assign it to a particular product or material. This will enable GTS to automatically determine the preferential origin of goods based on the criteria set. 
  
  Tips & Tricks: 
  It is important to ensure that the preference criterion is set up correctly in order for GTS to accurately determine the preferential origin of goods. Additionally, users should regularly review and update their preference criterion in order to ensure compliance with international trade regulations. 
  
  Related Information: 
  For more information on preference criterion, please refer to SAP’s documentation on Global Trade Services. Additionally, users can find more information on international trade regulations from the World Trade Organization’s website.