Procurement Glossary
Long-term supplier's declaration (LLE): definition and application in customs
November 19, 2025
The long-term supplier's declaration (LLE) is a central document in international trade that confirms the preferential originating status of goods over a longer period of time. It enables companies to simplify customs procedures and claim preferential tariff treatment without the need for repeated individual proofs. Find out below what a long-term supplier's declaration is, which methods are used and how you can minimize risks.
Key Facts
- Validity period of up to two years for recurring deliveries
- Simplifies customs clearance by eliminating individual proofs of origin
- Requires detailed documentation of the origin criteria
- Significantly reduces administrative costs and processing times
- Subject to strict compliance requirements and regular checks
Contents
Definition: Long-term supplier declaration (LLE) in procurement
A long-term supplier's declaration is an extended form of supplier's declaration that is valid for a defined period of time.
Basic properties of the LLE
The LLE confirms the preferential origin of goods for recurring deliveries over a maximum period of two years. It replaces individual certificates of origin and enables the continuous use of tariff preferences.
- Valid for up to 24 months
- Covering multiple deliveries of goods
- Detailed origin criteria documentation
LLE vs. standard supplier's declaration
In contrast to the standard supplier's declaration, which relates to individual shipments, the LLE covers a longer period of time. This significantly reduces the administrative effort involved in customs clearance and creates planning security for both contracting parties.
Importance of LLE in Procurement
For purchasing organizations, the LLE is a strategic tool for cost optimization. It enables the systematic use of preferential agreements and supports preference calculation when selecting suppliers.
Methods and procedures
The successful implementation of an LLE requires structured procedures and clear processes between supplier and customer.
Creation and validation
The supplier prepares the LLE based on detailed original calculations and material analyses. Validation is carried out through internal compliance checks and external audits.
- Rules of origin analysis according to preferential agreements
- Documentation of the value chain
- Regular updates in the event of changes
Integration into procurement processes
LLE is systematically integrated into export processing and supplier management processes. This includes integration into ERP systems and training for the employees involved.
Monitoring and compliance
Continuous monitoring of LLE validity and compliance conformity through regular reviews and updates. In the event of changes to the customs tariff number or product specifications, an adjustment is required.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Key figures for controlling the LLE
Effective KPIs enable the measurement and optimization of LLE performance in procurement organizations.
Cost efficiency key figures
The cost savings through LLE are measured by the saved customs duties and reduced administration costs. Typical savings are 15-25% of the original customs costs.
- Customs cost savings in euros per year
- Administrative cost savings per shipment
- ROI of the LLE implementation
Process efficiency metrics
The processing time for customs clearance and the error rate for proofs of origin are key performance indicators. A well-implemented LLE reduces the processing time by an average of 40%.
Compliance indicators
Monitoring of LLE validity, update rate and audit results. Timely renewal before expiry and an error rate of less than 2% are considered benchmark values for successful LLE management.
Risk factors and controls for LLE
The use of LLE entails specific compliance and operational risks that must be minimized through suitable control mechanisms.
Compliance risks
Incorrect or outdated LLEs can lead to additional customs charges, penalties and loss of AEO status authorization. Regular validation and updating are essential.
- Additional claims under customs law in the event of errors
- Loss of preferential advantages
- Reputational damage in the event of compliance violations
Operational risks
Changes in the supply chain, product modifications or new trade regulations can affect the validity of the LLE. Systematic change management is required.
Control mechanisms
Implementation of robust control systems through regular audits, automated monitoring and training programs. Integration with export control ensures continuous compliance.
.avif)
Practical example
A German automotive supplier implements LLE for electronic components from South Korea as part of the EU-Korea Free Trade Agreement. The LLE covers 15 different product groups over 18 months and enables customs cost savings of 180,000 euros per year. Systematic integration into the ERP system reduces processing times by 60% and increases compliance security.
- Lead time for LLE creation: 6 weeks
- Annual cost savings: 180,000 euros
- Reduced processing time: 60%
Current developments and effects
Digitalization and new trade agreements are having a significant impact on the development of long-term supplier declarations.
Digitization of LLE processes
Modern IT systems automate the creation, management and monitoring of LLEs. AI-based solutions support the analysis of rules of origin and compliance monitoring.
- Automated validity checks
- Integrated commodity code management
- Predictive analytics for compliance risks
New trade agreements and the impact of Brexit
Current trade agreements such as CETA and the UK-EU agreement create new requirements for LLE. The preferential origin regulations are becoming more complex and require adapted documentation standards.
Sustainability and ESG integration
ESG criteria are increasingly being integrated into LLE in order to document sustainable supply chains. This supports companies in fulfilling sustainability reporting obligations and dual-use goods controls.
Conclusion
The long-term supplier's declaration is a strategic tool for optimizing international procurement processes. It enables significant cost savings and process improvements while reducing administrative burdens. However, successful implementation requires systematic planning, continuous monitoring and robust compliance mechanisms. Companies that use LLE strategically create sustainable competitive advantages in global trade.
FAQ
What is the difference between LLE and standard supplier's declaration?
The LLE is valid for a longer period (up to 24 months) and covers several deliveries, whereas standard supplier declarations relate to individual shipments. This significantly reduces the administrative effort and creates planning security.
What requirements must be met for an LLE?
The supplier must have detailed knowledge of the rules of origin, provide evidence of a stable supply chain and make regular deliveries to the same customer. Comprehensive documentation of the value chain is also required.
How is the validity of an LLE monitored?
Through systematic monitoring systems, regular reviews and automated reminders before expiry. In the event of changes to product specifications or the supply chain, the LLE must be updated immediately to avoid compliance risks.
What cost savings can be realized through LLE?
Typical savings are 15-25% of the original customs costs plus reduced administration costs. For larger import volumes, annual savings in the six-figure range can be achieved, depending on the applicable preferential rates.
.png)
.png)
.png)
