Jayc,
In MATP, PAL check is fully supported only at the header level.
During MATP, during the ATP check for the components, the only Characteristics that are passed to the PAL check for the components are 'component product' and 'component location'. If you set up CVCs for your component Product Allocations using only these two characteristics, the PAL check should work.
There are also some other 'gotchas' for the Product Allocation check carried out at the component level. Review note 931249.
Best Regards,
DB49