Supplier declarations & preference calculation We strengthen your competitive edge
Our FORMAT‑WUP tool for origin and preference determination helps you reduce errors and stay compliant with legal requirements. Boost your competitiveness in international trade with accurate preference documentation.
External demands are growing: the number of preferential trade agreements is continuously increasing, bringing high complexity due to differences between agreements. The legal consequences of non‑compliance also create uncertainty for businesses. The risk of being unable to provide the required proofs of preference is significant. Companies that can demonstrate preferences, however, gain a clear advantage in global competition.
Features
Features overview
Efficient
Preference calculation can be carried out up to 100% automatically, saving valuable time.
Optimised processes are clearly organised and cost-efficient.
Simple
Solution enables you to easily manage preference documents and determine the preferential originating status of the stock. All EU and CH / EFTA agreements can be calculated.
Integrated
FORMAT-WUP integrates itself into the process landscape used. The basic data are updated automatically and a worst-case assessment is performed.
Calculated
Cost your standard parts lists as well as your individual sales, production and manufacturing orders. From the determination of the minimum ex-works price to the use of the general tolerance through to the step-by-step acquisition of origin.
Functions
Functions
- Request, manage and issue Long-Term Supplier’s Declarations (LTSDs). Also manage single proofs (single supplier’s declarations, EUR.1, EUR.MED, origin statements).
- Avoid missing or duplicate LTSDs with differential requests. Plausibility checks on entry reduce errors. Monitor and chase requested declarations with up to three dunning levels. Determine potentially applicable agreements based on single-proof data. Proposed items for issuance are suggested from sales data. All supplier’s declarations are produced in line with the current UCC requirements.
- Use preference calculation based on bills of materials in FORMAT‑WUP, or determine preferences from individual BOMs (sales orders and production/manufacturing orders).
- Support for varying calculation intervals or a specific cut-off date. Get reminders or run automatic recalculations for soon-to-expire results. Diagonal cumulation and general tolerances are supported. Minimal processing and goods sets per GRI 3 are covered. Receive a detailed result, including an overview of validated receipts and proofs of preference.
Technical
functions
- Master and transaction data can be automatically transferred from the ERP system via an interface
- Results data can be transferred to the ERP using output interfaces
- Requests for supplier declarations via standard PDF, editable PDF, Excel
- Exchange of data of requested and issued supplier declarations via eBVZH interface
- Simulation support
Workflow
FORMAT‑WUP data flows at a glance
FAQ
Frequently asked questions
What is the ex-works price?
Ex-works price (EXW) is the price actually paid/payable when the goods leave the manufacturer’s factory. In practice:
- Start from: Net invoice price per unit of the specific sale.
- Subtract: All costs included in the price after the factory gate (e.g., domestic freight, port/terminal charges, international freight/insurance).
- Add: Buyer’s supplies/contributions not included in the price.
- Incoterms: The EXW net price usually equals the ex-works price; for FOB/CFR/CIF, deduct included transport/insurance.
Note: For origin calculations, apply the definition in the origin protocol of the relevant preferential agreement.
What does “set of goods” mean in preferential origin rules?
- Definition: A set of goods is a package containing at least two different items, usually sold together to meet a specific need or perform a specific activity (cf. GRI 3(b) HS).
- Tariff classification: The set is classified according to the component that gives it its essential character.
- Preferential origin: Origin does not automatically follow the essential-character component. The set qualifies as originating if all components have origin in the same contracting party, or if the list rule for the tariff heading of the set (including permitted tolerances) is met. Individual non-originating items are allowed if the applicable list rule/tolerance permits it.
- Proof: The preferential proof (e.g., origin declaration, EUR.1) is issued for the set as a whole; individual component proofs are for calculation only.
- Examples: Tool set, first-aid kit, shaving set, themed gift set.
Note: Merely jointly packed, unrelated items are not a set of goods; they must be treated separately.
Do I have to issue Supplier’s Declarations (SD) to my customers?
Short answer: No, there’s generally no legal obligation.
Why it still makes sense:
- Customs savings for your customers: With an SD, they can issue preferential origin proofs (e.g., origin statement, EUR.1) and claim reduced duties.
- Competitive edge: Many buyers require SDs—without them, you may be rated lower or lose orders.
- Planning reliability: Long-term Supplier’s Declarations support forecasting and customs planning across multiple shipments.
- Cost benefits across the chain: Preferential duties lower import costs, increase your customer’s margin, and create pricing flexibility that can benefit you too.
What does “customs value based on goods receipt data” mean in preferential origin?
“Customs value based on goods receipt data” = the value of the imported goods at the place/time of entry into the EU. It is the basis for import duties and—where the preference rule relies on it—for value-based origin tests (e.g., list rules, RVC).
Determination (standard: transaction value under UCC Art. 70):
- Add up to the EU border: transport/insurance, loading/handling, packaging, commissions (excluding buying commissions), royalties, assists, seller’s proceeds.
- Deduct from the EU border onward: EU inland freight, duties/VAT levied in the EU, buying commissions, documented post-sale discounts.
Practice:
- Key inputs are the goods receipt data (Incoterm, freight/insurance, licenses, assists, discounts, currency/rate).
- Incoterms determine what to include up to the EU border.
- Convert to EUR using the customs exchange rate valid on the declaration date.
Distinction:
- Customs value ≠ Intrastat value ≠ financial purchase cost.
- If preference rules require “ex-works”: remove cross-border freight/insurance from the customs value. If rules explicitly refer to “customs value,” use it as is.
What is “minimal processing” in preferential origin?
“Minimal processing” refers to simple, superficial operations that do not confer preferential origin. Examples: cleaning, sorting, cooling/freezing, simple repacking/labeling, simple mixing, or basic assembly without a significant change in function. These do not justify a preferential proof (e.g., EUR.1).
Important: Preferential origin always requires “sufficient processing” according to the list rules of the relevant agreement (e.g., tariff shift, value criterion, specific processing).
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