Country of Origin Case Studies
Electronics
KYG.Trade can be used to document and support non-preferential origin. In this case study, intermediate components from several countries are finally assembled, packaged and shipped from China to the United States. Using the KYG.Trade SaaS, the customer is able to immutably document and prove the country of origin of the finished goods is not China, and therefore, the United States Section 301 (i.e., China 301) retaliatory tariffs do not apply.
Automotive
This case study shows how KYG.Trade can be used to solicit Certifications of Origin and underlying supporting production details for an intermediate engine assembly imported into the United States from Canada under the new USMCA rules of origin. Certifications of Origin are immutably recorded to any blockchain and can be linked to downstream successor products consisting of 1,000s of components from counter-party suppliers located in the US and Mexico.
Apparel and footwear
This case study involves materials from country of export A, cut and sew panels in country of export B, assembly in country of export C, and import into country D under the EU generalized system of preferences (GSP). KYG.Trade can be used to create digital certifications of origin for all three steps in the supply chain and supporting material and labor data can be immutably recorded and stored for future EU Customs GSP verification audits.
Industrials
This case study involves the production of commercial air conditioner units, starting with copper from country A, production of a heat exchanger in country B, finished assembly in country C, and importation into country D. KYG.Trade is used to facilitate obtaining an upstream supplier’s paper-based Certification of Origin (CO) from a copper supplier who is not on the KYG.Trade Platform. The paper-based CO and the digital certifications of origin along with supporting production records from all stages of the supply chain are used to validate the preferential rule of origin for the finished AC unit.
Life sciences
This case study involves the preferential rule of origin for pharmaceuticals. Under most FTAs, origin for pharmaceuticals is conferred when the active product ingredient (API) is introduced. It is common for pharmaceutical manufacturers to purchase API starter feed stock from multiple sources in different countries. KYG.Trade is used to immutably record the ingredients and processing data for each step in the production process allowing participants to accurately determine if the customs preferential rule of origin is satisfied.
Chemicals
This case study involves chemicals under the Technical Tests for Products of the Chemical or Allied Industries preferential rule of origin. The manufacturer provided source documents as immutable proof of the location and processing via KYG.Trade. An independent 3rd party origin expert from the KYG.Trade Marketplace evaluated the fact pattern and documentation, and attested to the accuracy of the origin claim from a customs preferential origin standpoint, increasing trust between the seller/exporter and buyer/importer.
Contact us for information on how KYG.Trade can benefit you and your industry