What is preferential origin in SAP SLL - Global Trade Services?

SAP Term: preferential origin

• Component: SLL

• Component Name: Global Trade Services

• Description: A status conferred upon goods, making them eligible for preferential customs treatment. Goods have preferential origin if they have been grown, reared, or produced entirely in a country "wholly obtained", or if the goods have been worked or processed to a sufficient level. The following criteria are used to establish whether the goods have been worked or processed to a sufficient level: Change in tariff classification Value-content requirement percentage of contained originating goods versus percentage of contained non-originating goods Special working The preference rules in the relevant preference agreement specify which criteria have to be used for determining the preferential origin.

Smart SAP Assistant

• Key Concepts: 
  Preferential origin is a concept used in international trade to determine the origin of goods for the purpose of determining the applicable tariff rate. It is used to determine whether goods are eligible for preferential treatment under a free trade agreement or other preferential arrangement. 
  
  How to use it: 
  In SAP Global Trade Services (SLL GTS), preferential origin is used to determine the applicable tariff rate for goods being imported into a country. The system will check the origin of the goods against the list of countries that are eligible for preferential treatment under a free trade agreement or other preferential arrangement. If the origin of the goods matches one of these countries, then the applicable tariff rate will be reduced. 
  
  Tips & Tricks: 
  When entering information about the origin of goods into SAP GTS, it is important to ensure that all relevant information is entered accurately. This includes the country of origin, as well as any other relevant information such as production processes or materials used in production. This will ensure that the correct tariff rate is applied. 
  
  Related Information: 
  For more information on preferential origin and how it is used in SAP GTS, please refer to the SAP Help documentation.