Automating Origin Calculations: Key Considerations for Manufacturers With Complex Supply Chains

Abstract

Rules of origin are a core element of any free trade agreement, but their complexity can present significant challenges for efficient and compliant use. This paper discusses the challenges and opportunities in automating origin calculations for businesses involved in cross-border trade. It focuses on the role of Enterprise Resource Planning (ERP) systems, customs software and Long-Term Supplier Declarations (LTSDs) in simplifying compliance with preferential origin rules. Focusing on the United Kingdom’s trade, the paper outlines key factors businesses must consider to effectively automate origin management, such as rules interpretation, data quality, legal documentation and supplier cooperation. The potential roles of distributed ledger technology (DLT) and automation within customs declarations software are also explored.