E2open announced seamless support of the new US-Mexico-Canada Agreement (USMCA) which replaces the North American Free Trade Act (NAFTA) on July 1, 2020 and governs more than $1 trillion in trade between the three nations. As the trade agreement goes into effect, E2open clients can confidently comply with new USMCA regulatory requirements and capture every available duty savings opportunity to ensure the lowest total landed cost for its products.
“Maximizing cost savings opportunities from trade agreements provide a strategic advantage for any companies engaged in international trade,” said Michael Farlekas, president and chief executive officer of E2open. “But administering these complex agreements and staying on top of regulatory changes is challenging. E2open helps clients quickly cut through the red tape, stay current and realize the full potential of all available trade agreements. Given the importance of trade between America, Canada and Mexico, ensuring a seamless transition to USMCA is essential for our clients.”
E2open’s global clients can now qualify all applicable goods for coverage under the USMCA to ensure compliance and achieve the lowest total product costs for goods manufactured, assembled or value-added in America, Canada and/or Mexico. When businesses can demonstrate that products comply to the complicated legal “rules of origin” constructs, customs duties can be significantly reduced and often eliminated.
“The only way to efficiently manage free trade agreements and maximize their value is through automation,” said Pawan Joshi, executive vice president of product management and strategy of E2open. “This requires modern trade applications to automatically match multifaceted bills of materials against complex rules of origin, a comprehensive regulatory database that is always up to date, and a network to efficiently secure proofs of origin from all trading partners. E2open clients enjoy recurring monetary benefits each year by automating these time-intensive and error–prone processes.”
As part of a full suite of applications to manage all aspects of global trade management, E2open Trade Agreements application is highly scalable and supports more than 150 free trade agreements around the world. Once in place, users can expand coverage to capture additional duty savings for trade with other countries.