Long-Term Supplier’s Declaration (LLE): How Companies Tackle Complexity Through Digitalization
The Long-Term Supplier’s Declaration (LLE) is one of the most commonly used documents in intra-EU trade – especially in the automotive industry. It serves as proof that delivered goods have preferential origin status within a specified period – a key requirement to benefit from tariff advantages during export.
In a globally connected supply chain, where thousands of components come from various suppliers, the LLE becomes a key document for maintaining competitiveness. But with its importance comes growing complexity.
Legally Required, Practically Challenging
Although companies are not legally obliged to issue a Long-Term Supplier’s Declaration (LLE), many manufacturers contractually require it – for example, to obtain a formal proof of preferential origin (such as EUR.1) for their final product. Strict formal requirements apply: the declaration must include specific date references, may be valid for a maximum of 24 months, and must be updated or revoked in the event of any changes.
The legal framework is based on EU regulations (UCC, UCC-IA), which have allowed for slightly more flexibility since 2017 – particularly regarding the validity period and processing methods. However, the responsibility remains with the supplier: an incorrect origin declaration can result in back taxes, fines, and even criminal penalties.
Complexity in Practice: From Excel Chaos to Process Automation
In practice, this means that procurement and customs departments must regularly review, archive, and update hundreds of LLEs. Many companies still manage supplier declarations manually – using Excel spreadsheets, overflowing email inboxes, and PDF files stored on shared drives. This approach is error-prone, lacks transparency, and is difficult to scale.
On top of that, proper content verification requires expertise in preferential origin rules, customs tariff numbers, and free trade agreements. Inaccurate or incomplete entries – such as incorrect origin claims or missing validity dates – can result in an LLE being rejected by customs.
Digitalization as a Gamechanger – Powered by EDI and Standards Like VDA 4997
This is where digitalization comes in: Electronic Data Interchange (EDI) enables the structured, automated transmission of origin data between supplier and manufacturer. The automotive industry uses the VDA 4997 standard for this purpose – a digital exchange format that standardizes the entire process of requesting, submitting, and validating LLEs.
Instead of manually sent PDFs, data is exchanged electronically – securely, transparently, and in an automatable way. Software solutions handle validation, issue reminders for expiring declarations, and archive all versions in an audit-proof manner. The benefits are clear:
- Reduced administrative effort
- Higher data quality
- Improved compliance
- Faster response times to changes
- Seamless integration with ERP and customs systems
The Key to Success: A Standardized Onboarding Process
As valuable as digital LLE processes are, their success depends entirely on clean partner onboarding. Why? Because before EDI data can flow automatically, partners must be technically connected, processes aligned, and communication formats agreed upon.
This is exactly where LABAL.onboard comes in.
Our solution supports companies with efficient and structured onboarding of new suppliers – including:
- Automated collection of all partner information
- Validation of submitted data
- Compliance with industry-specific standards such as VDA 4997
- Integration into existing EDI environments
With LABAL.onboard, a time-consuming one-off process becomes an efficient, repeatable standard – a true competitive advantage, especially when it comes to managing supplier declarations.
