MANAGING SUPPLIER'S DECLARATIONS IN THE TEXTILE INDUSTRY

Correctly determining the origin of goods in order to issue preference documents is extremely important for international companies — and particularly so for the textile industry. After all, this can save the exporting companies a lot of money. Without technical support, however, this is a highly complex task that takes a great deal of time and effort.

MANAGING THE ORIGIN OF GOODS AND PREFERENCES TOGETHER

There are already software systems for managing supplier's declarations available on the market. dbh Logistics IT AG (dbh), working with industry associations Gesamtmasche and Südwesttextil, has now adapted the Advantage Preference software for origin of goods and preferences to the requirements of the textile industry. The result: Advantage Preference Textile. This tool allows supplier's declarations to be managed in an easy and straightforward manner.

Due to high third-country customs duties, the textile and clothing industry makes extensive use of preferential agreements as they can offer substantial financial advantages. Supplier's declarations are also a key selling point in the textiles business. As well as a major challenge: Restrictive rules of origin, constant changes in the range of agreements and the different stages in the textile value chain make issuing supplier's declarations in compliance with the law a complex process that is prone to errors.

Origin of goods and preferences software commonly available on the market is of little help to the clothing industry when it comes to tackling the major challenges involved in the administration of supplier's declarations as the main proof of preferential origin. Following textile rules of origin requires comprehensive expertise and the management of proofs of origin is more complicated in the textile industry than in other sectors.

TRANSFORMING THE REQUESTING AND ISSUING OF SUPPLIER'S DECLARATIONS INTO A MORE EFFICIENT PROCESS

Working in close collaboration with professionals in the textile industry, dbh has adapted the Supplier's Declaration module to the requirements of the industry and presented it to an expert audience in a live demonstration in Stuttgart. "Advantage Preference Textile transforms the procedures for requesting and issuing supplier's declarations into an efficient process and minimises sources of error," summarises Jürgen Bach, Consulting and Sales, dbh Logistics IT AG.

In addition to the procedures for the requesting and issuing of standard long-term supplier's declarations for originating goods, the declaration for non-originating goods and the cumulation function were also presented. The presentation also included a demonstration of how, by analysing the Pan-Euro-Med matrix in the case of a corresponding cumulation note, the list of preferential movements of goods is automatically shortened to the correct range of countries. The tool offers a whole host of functions, meaning that even special cases such as foreign declarations for full cumulation with Maghreb countries are covered.

If there is sufficient demand, dbh, Südwesttextil and Gesamtmasche are hoping to implement a supplementary module for preference calculations.

FURTHER INFORMATION

Further information on Advantage Preference Textile is available in the member area of www.gesamtmasche.de .

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