NAFTA Preference Determination in GTS Robert Adams and Opal Melendez Eaton Corporation

NAFTA Preference Determination in GTS 10.0 Robert Adams and Opal Melendez Eaton Corporation EATON CORPORATION • • • • • • • • • Founded in 1911 by...
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NAFTA Preference Determination in GTS 10.0 Robert Adams and Opal Melendez Eaton Corporation

EATON CORPORATION

• • • • • • • • •

Founded in 1911 by J.O. Eaton Chairman & CEO – Alexander M. Cutler Headquarters: Dublin, Ireland Key locations in Cleveland, Ohio; Shanghai, China; Morges, Switzerland; Sao Paulo, Brazil Innovation Centers in regions around the world Customers in more than 175 countries Sales of $21.8 billion* 50% of sales outside the U.S. Approximately 103,000 employees © 2013 Eaton. All rights reserved

* 2012 Sales Pro-forma, including Cooper

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EATON’S BUSINESSES

Electrical Sector $13.2 B Sales*

Industrial Sector $8.6 B Sales

Electrical Products

Hydraulics Aerospace

Electrical Systems & Services

Vehicle

* 2012 Sales by Sector Pro-forma, including Cooper

© 2013 Eaton. All rights reserved

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LEARNING POINTS  Differences in Configuration in Preference Determination GTS 10.0  New Preference Determination Screens in GTS 10.0  New functionality on our Roadmap  Lessons learned during our Upgrade to GTS 10.0

CONFIGURATION THAT REMAINED  Define Legal Regulation  Assign Country/Country Group to Legal Regulation  Define Administration Unit  Define either Cross-Plant or Plant Based Configuration  Define Administration Unit Attributes  Activate Preference Agreement at Country/ Country Group Level  Define Rule Set  Control Settings for Vendor Declarations  Define Standard Texts and Logos  Control Settings for Vendor-Based Long Term Vendor Declarations  Control Settings for Customer Based Long Term Vendor Declarations

NEW CONFIGURATION SCREENS  Assign Preference Agreement to Rule Set

CUMULATIVE ENDORSEMENT APPLICABLE

ASSIGN AGREEMENT TO RULE SET

NEW CONFIGURATION SETTINGS  Assign Preference Agreement to Rule Set  Administrative Unit Attributes Screen allows assignment of Tariff Code Scheme

TARIFF CODE SCHEME ASSIGNMENT

NEW CONFIGURATION SETTINGS  Assign Preference Agreement to Rule Set  Administrative Unit Attributes Screen allows assignment of Tariff Code assignment  Define Preference Indicators

ASSIGN PREFERENCE INDICATORS

NEW CONFIGURATION SETTINGS  Assign Preference Agreement to Rule Set  Administrative Unit Attributes Screen allows assignment of Tariff Code assignment  Define Preference Indicators  Assign Preference Indicator Schema to Rule Set

ASSIGN INDICATOR SCHEMA TO RULE SET

LEARNING POINTS  Differences in Configuration in Preference Determination GTS 10.0  New Preference Determination Screens in GTS 10.0  New functionality on our Roadmap  Lessons learned during our upgrade to GTS 10.0

NEW SCREENS AND LAYOUT

MASTER DATA SCREENS    

Rearranged options on the screen Some options eliminated or moved to other screens New transaction to display preference data for products New transaction to determine low level codes of Bills of Products

MASTER DATA SCREENS

MASTER DATA SCREENS

MASTER DATA SCREENS

MASTER DATA SCREENS

MASTER DATA SCREENS

PREFERENCE PROCESSING SCREENS  Entire layout rearranged – no longer only EU or NAFTA tabs  Based on Administrative Unit and dates  3 sections, each with separate tabs based on function • Vendor-Based LTVDs • Customer-Based LTVDs • Preference Determination

PREFERENCE PROCESSING SCREENS

Select an administrative unit and a Period before doing anything else. Once an admin unit is selected, the screen is expanded.

PREFERENCE PROCESSING SCREENS

PREFERENCE PROCESSING SCREENS

New option to Request Vendor Declarations in Annual Run in the Processing tab of the Vendor LTVD’s

PREFERENCE PROCESSING SCREENS

Note that the admin unit is automatically populated from the previous screen. The selection can be done by partner or product. Enter the date you want to request LTVDs for.

PREFERENCE PROCESSING SCREENS

Master data tabs at each level allow you to access the product master and commodity codes without having to leave the Preference screens

LEARNING POINTS  Differences in Configuration in Preference Determination GTS 10.0  New Preference Determination Screens in GTS 10.0  New functionality on our Roadmap  Lessons learned during our upgrade to GTS 10.0

GTS PREFERENCE ROADMAP  Roll out more Free Trade Agreements – Will need to purchase the Rules of Origin.  Update our Feeder System with more Preference data  Implement Web Portal functionality for Vendor LTVD’s

UPDATE LTVD’S IN PORTAL

LEARNING POINTS  Differences in Configuration in Preference Determination GTS 10.0  New Preference Determination Screens in GTS 10.0  New functionality on our Roadmap  Lessons learned during our Upgrade to GTS 10.0

LESSONS LEARNED

 Lessons Learned 1. Changes to NAFTA rule set

CHANGES TO NAFTA RULESET  We changed our rule set name during the upgrade to align with the Customs Info naming convention  Old agreements using the previous rule set name were no longer accessible to the users  Worked with SAP to find a solution. They advised that the only solution was custom coding.  We created a custom one-time program to convert old agreement data in the system to the new rule set name.  Required update of two SAP tables: • /SAPSLL/PREVDITM – Preference LTVD Item • /SAPSLL/PRPREF – Preference data in product master

LESSONS LEARNED

 Lessons Learned 1. Changes to NAFTA rule set 2. Use of Dates in Preference Determination

USE OF DATES

Display worklist transaction – ”worklist from” date. This date will overwrite dates from the initial screen.

USE OF DATES

Preference Determination will only be done for current period even though another period is selected in the main screen.

LESSONS LEARNED

 Lessons Learned 1. Changes to NAFTA rule set 2. Use of Dates in all Preference Screens 3. Automotive Rule

AUTOMOTIVE RULE  Most of our products do not fall under the automotive rule.  The rules are written that if a product is not automotive in nature, then you apply the condition  Users were not checking the preference determination log to see why a product didn’t qualify for NAFTA

• We need to always check the log to see if a condition must be applied to an HTS code

• We need to be more proactive in researching

which products and HTS codes that fall under the automotive rule so that conditions can be set

AUTOMOTIVE RULE

AUTOMOTIVE RULE

LESSONS LEARNED

 Lessons Learned 1. Changes to NAFTA rule set 2. Use of Dates in all Preference Screens 3. Automotive Rule 4. Testing Time

LESSONS LEARNED  Underestimated the time required to test all the new functionality in the Preference module  Minimal documentation of changes from 8.0 to 10.0  Users not involved in testing until late  Increased time and effort training users after go-live

KEY LEARNINGS    

New configuration for Preference Processing New screens and layout of screens New functionality on our Roadmap Lessons learned during our upgrade

Q&A

 Questions?

THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE:1002 For ongoing education on this area of focus, visit www.ASUG.com