Using GTS to Manage Your NAFTA Preference Determination. Bob Adams: Cooper Industries - Joe Burks: Cooper Industries

[ Using GTS to Manage Your NAFTA Preference Determination Bob Adams: Cooper Industries - Joe Burks: Cooper Industries [ Bob Adams – Cooper Industr...
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Using GTS to Manage Your NAFTA Preference Determination

Bob Adams: Cooper Industries - Joe Burks: Cooper Industries

[ Bob Adams – Cooper Industries United States Military Academy: 1983 MBA – Wake Forest University: 2000 11 years of active military duty 15 years in the Army Reserve 15 years of experience working with SAP. This includes 13 years with the Apparel Footwear Solution and Global Trade System  3 years of experience with GTS including versions 7.0, 7.2, & 8.0     

Real Experience. Real Advantage.


[ Joe Burks – Cooper Industries     

Director of Global Trade Compliance Licensed Customs Broker since 1995 Past ICPA President and Board of Directors American Shippers Editorial Board Inherited GTS (no one claimed ownership)

Real Experience. Real Advantage.



Global Footprint and Scale (~$5.5B Total Sales)

Real Experience. Real Advantage.


[ Energy & Safety Solutions Market Size

Real Experience. Real Advantage.



Electrical Products Group Market Size Lighting $1,100+/- million Market Size: $10B Bussmann $650+/- million Market Size: $24B B-Line $400+/- million Market Size: $19B Wiring Devices $350+/- million Market Size: $17B

Real Experience. Real Advantage.


[ Learning Points  The NAFTA Preference Module within GTS provides an automated means to manage your NAFTA Preference Determination.  The requesting, managing, and issuing of Long Term Vendor Declarations within GTS gives greater control over your NAFTA Preference Documentation.  NAFTA Determination with historical records to meet record keeping requirements.  Reduce project timelines and costs with our tips for managing your NAFTA Preference Determination.

Real Experience. Real Advantage.


[ Return on Investment  Manually maintaining records is a laborious task as well as the mounds of paperwork generated.  GTS Preference Processing automates the processing reducing the amount manual labor required.  Paperwork reduction reduces the amount of storage needed.  LTVD’s returned from vendors is the only manually maintained documentation.

Real Experience. Real Advantage.


[ Agenda  GTS NAFTA Preference Process  Requesting Long Term Vendor Declarations (LTVD) from Vendors  Maintaining and Aggregating Long Term Vendor Declarations  Dunning for those vendor who won’t return your requests  Performing Preference Determination  Issuing Long Term Vendor Declarations to your customers

 Implementing NAFTA Determination  Our experiences, good and bad  Tips for your success

 Plans for GTS 10.0 NAFTA Determination  Handouts  Too much info to fit into these slides Real Experience. Real Advantage.


[ The GTS NAFTA Preference Process (Part 1)

• Purchase Order is entered into R/3 • Purchase order is to a vendor for a particular material

Purchase Order in R/3

Real Experience. Real Advantage.

Entry In GTS LTVD Worklist • If there is not a entry in the worklist for the vendor/year/materials combination an entry is made.

• Request are sent out via emails. • If not received back in 30 days the request is dunned.

Email Request for LTVD’s to Vendors

Maintain and Aggregate LTVD’s • Once Vendors respond, users can maintain and aggregate the information in GTS

• Users can conduct Preference determination on Company’s FERTs. • Applies 3 test to determine if product is NAFTA or not eligible.

Conduct Preference Determination


[ The LTVD Work list  The worklist is populated when there is a unique Vendor/Material/Year combination.  Can be populated by Purchase Orders and/or Specific Goods movements in R/3

Real Experience. Real Advantage.


[ Requesting Long Term Vendor Declarations  Request for LTVD is sent out by email  The request consist of four documents:    

A cover letter A NAFTA Certificate A NonNAFTA Affidavit A list of materials that we purchase from vendor

 The request can be dunned after 30 days Real Experience. Real Advantage.


[ Maintain and Aggregate Long Term Vendor Declarations  Once Vendor returns the NAFTA Certificate, the GTS LTVD can be updated with Preference Indicator and Country of Origin.  Aggregation updates the GTS product master with this preference information so that it can be used in preference determination.

Real Experience. Real Advantage.


[ Preference Determination  Application of the three test based on Rules of Origin.  The three test are:  Regional Value Content.  Transaction Value.  Net Cost Method.

 Tariff Shift.

 Performing Preference Determination updates GTS Product Master. Real Experience. Real Advantage.


[ The GTS NAFTA Preference Process (Part 2)

• Billing Document is created in R/3 • Billing Document is for a particular Customer/Material.

Billing Document is created in R/3

Real Experience. Real Advantage.

Entry In GTS C-LTVD Worklist • If there is not a entry in the worklist for the Customer/year/materials combination an entry is made.

• Request are Printed, signed and mailed to customers. • C-LTVD’s can be revoked.

User issues CLTVD


[ Customer – Long Term Vendor Declaration  Billing Docs are passed from R/3 to GTS. This triggers an entry into the Worklist for C-LTVD.  One entry is made for each customer/material/year combination.

Real Experience. Real Advantage.


[ NAFTA Certificate is Issued  NAFTA certificate is systematically produced to be issued to Customers.  Blanket Certificates can be issued for all products that are purchased by Customer.

Real Experience. Real Advantage.


[ Best Practices – GTS NAFTA Determination  Master Data Drives the system. Maintaining Master Data is an ongoing effort.  Harmonized Tariff Schedule Codes in the GTS Product Master.  Process also allows for solicitation of the HTS if not on file.

 Business Partners – Email Address.

 Purchase Rules of Origin from a third party vendor.  Purchase Harmonized Tariff Schedule Codes from a third party vendor.  System is built to run wide open and then manage exceptions.

Real Experience. Real Advantage.


[ Upgrade to GTS 10.0  Currently Cooper Industries is planning on upgrade in third quarter 2012.  One chief driver of the upgrade is to expand our use of Preference agreements.  A second driver is the ability for our vendors to update the Preference indicators and Country of Origin of their products via the Web.  Reducing the amount of paperwork that needs to be retained.

Real Experience. Real Advantage.


[ Key Learnings  Managing NAFTA Preference Determination in GTS will save time, effort and money. The system gives you an automated means to manage electronically the documentation required to gain the preferential savings.  The NAFTA Preference Process is meant to be run in Mass and not by selecting individual products. You can then manage the exceptions.  Leveraging the advantages of third party vendors (for Rules of Origin and HTS codes) can save you headaches.  For the original deployment that team tried to write their own rules.

Real Experience. Real Advantage.




 Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year-Round Community page at


Real Experience. Real Advantage.