Painting a picture of preferential origin compliance: DAW SE
DAW used spreadsheets to manage preferential origin, but with complex products and thousands of materials, this time-consuming and error-prone method introduced compliance risk.
Challenge
"We didn’t have a proof of calculation unless we made it ourselves in Excel. For so many thousands of articles distributed daily, calculating using spreadsheets took too much time and was too complex. It just wasn’t possible."
Edith Ungar, Export / Team Leader / Customs Representative, DAW SE
DAW Group manufactures, sells, and resells a wide variety of industrial coating systems under the brands of Caparol, Alpina, Alsecco, Alligator, Inthermo, Disbon, Krautol, CMS Group, and Caparol Industrial Solutions. DAW was claiming preferential origin for exports from the EU and issuing Long Term Supplier’s Declarations (LTSDs) to their clients. However, the complexity of their products, which include both manufactured and imported raw materials as well ancillary products such as buckets, drums, lids, and labels, made traditional origin calculation methods labor-intensive and error-prone. While DAW was confident that their articles were originating, they were not certain their proofs would stand up to the scrutiny of customs authorities.
DAW’s customs team built a financial case based on the risk of 3-4 truckloads per day destined for Switzerland, containing 33 pallets per truck and 24 drums per pallet. The potentially problematic duty and penalties added up to millions of euros if they couldn’t prove preference, leading them to search for purpose-built origin management software that would ensure compliance.
DAW’s purchasing, customs, and IT teams worked together to evaluate origin management solutions based on their various requirements and use cases. In addition to mitigating compliance risk, they were looking for a solution that would work across functions to improve their processes for calculating origin as well as collecting and maintaining LTSDs.
DAW chose AEB based on its fit for their business in terms of usability, functionality, customer support, and price. AEB’s integration with DAW’s SAP® ERP platform was also a strong deciding factor.
DAW now uses AEB Origin & Preferences (O&P) software to automatically calculate preference based on their complex materials lists and to exchange intercompany LTSDs. The respective sites no longer have to request or issue LTSDs manually via email or hard copy. Rather, information in SAP triggers a data exchange within O&P for requests ("I need an LTSD") and issuances ("I have given you an LTSD").
Result
Automated origin calculations and LTSD management keep DAW’s preference claims compliant so customers outside of the EU can benefit from preferential treatment. In 2023, the software assessed 51,353 materials for origin and issued/received 1,902 supplier declarations, along with 52 issued for customers in Germany.
“Origin is a complicated issue. AEB made it comfortable for us and the collaboration is very good. We can now confidently rely on our origin calculation results and produce proof immediately.”
Edith Ungar, Export / Team Leader / Customs Representative, DAW SE
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About DAW SE
DAW Group develops, produces, and sells innovative coating systems, including paints, enamels, and thermal insulation, to protect and enhance nearly every building surface. Founded in 1895 and home to nine different brands, DAW is the third largest manufacturer of building paints in Europe and employs more than 5,600 people.