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Supplier declaration: definition & important aspects
Supplier declaration in a nutshell:
A supplier's declaration is a legally binding document that confirms the preferential origin of goods in international trade. For purchasing, it is essential for securing customs concessions and for fulfilling legal obligations to provide evidence in international trade.
Example: A German automotive supplier issues its customer with a long-term supplier's declaration for the period 01.01.2023 to 31.12.2023, which confirms the EU preferential origin for delivered brake components worth 2.5 million euros and thus enables a customs saving of 6.5%.
Contents
What is a supplier's declaration?
A supplier's declaration is a formal document issued by the supplier and contains detailed information about the origin, production conditions and compliance with certain standards of the products supplied. It serves as proof of compliance with legal requirements, such as customs regulations, and helps companies to ensure transparency and responsibility in their supply chain.
Main components of a supplier's declaration:
- Product description: Detailed information on the product supplied, including specifications and quantity.
- Country of origin: Information about the country in which the product was manufactured.
- Production conditions: Description of production processes, working conditions and environmental standards.
- Certifications: Listing of relevant certificates, such as ISO, Fair Trade or other industry-specific standards.
- Declarations of compliance: Confirmations of compliance with legal and regulatory requirements.
Importance for buyers:
- Ensuring compliance: Ensuring that all legal and regulatory requirements are met.
- Sustainability and ethics: promoting ethical procurement practices and sustainable production.
- Quality control: checking product quality and compliance with standards.
- Risk managementIdentification and reduction of risks in the supply chain through transparent information.
Creation and management:
- Request by the purchaser: The purchaser requests the supplier's declaration from the supplier.
- Checking the information: Careful checking of the information provided for completeness and accuracy.
- Archiving: Systematic storage of supplier declarations for future references and audits.
Best Practices:
- Standardization: Use of standardized formats and templates to facilitate comparability.
- Regular updates: Ensure that supplier declarations are always up-to-date and relevant.
- Integration into the supplier managementIntegration of supplier declarations into the overall supply chain management strategy for better traceability and transparency.
Guide: Everything you need to know about the correct creation and management of supplier declarations
Supplier declaration: from manual administration to digital integration
The supplier's declaration is essential for international trade as it proves the preferential origin of goods and enables companies to benefit from customs concessions. Based on the theoretical foundation outlined above, its practical application is essential for compliance and regulatory adherence. However, the traditional method of administration is reaching its limits, necessitating a shift towards more modern approaches.
Old: Manual supplier declaration
Traditional approach: In traditional practice, supplier declarations are created and processed manually. Suppliers send their declarations by post, fax or e-mail to the importers, who then print, check and archive them. This process is time-consuming and prone to errors such as loss of documents, incomplete information or incorrect declarations of origin. In addition, manual administration makes it difficult to update declarations on time, which can lead to legal risks and potential additional customs payments.
New: Digital supplier declaration
Supplier Declaration Management System: Modern approaches rely on the digital integration of supplier declarations into company processes. By implementing electronic platforms or systems, suppliers can upload their declarations directly into the importer's system. Automated checks ensure that all required information is complete and correct. Innovation points such as the use of blockchain technologies increase supply chain visibility and traceability of origin declarations. This leads to a significant reduction in administrative effort, minimizes sources of error and improves compliance. Practical benefits include faster customs clearance and cost savings of up to 30% in document management.
Practical example: Electronics industry
A leading company in the electronics industry has digitized the supplier declaration process. Thanks to a specially developed platform, over 95% of supplier declarations could be managed electronically. This led to a 40% reduction in processing time and a 25% reduction in the error rate. In addition, customs clearance times have been shortened by an average of two days, which has improved procurement logistics significantly increased. The digital data also enabled a faster response to changes in free trade agreements and improved decision-making in purchasing.
Conclusion: Supplier declaration as a key component in modern purchasing
The supplier declaration is an indispensable tool for buyers who want to ensure transparency, quality and compliance in their supply chain. It provides comprehensive information on the origin and production conditions of the goods supplied and helps companies to promote ethical and sustainable procurement practices. Despite the potential challenges, such as the administrative burden and dependence on the accuracy of supplier information, the benefits clearly outweigh the risks. By integrating supplier declarations into supply chain management, buyers can minimize risk, ensure product quality and ensure regulatory compliance. With the right strategies and technologies, the supplier declaration becomes a valuable tool for sustainable and successful purchasing.
