Number Sets in Product Classification

Product Classification is an important and time-consuming task in the global trade business. Usually, the products will be classified for one legal regulation for one specific country through normal classification process. But through this number set classification option this can be avoided and the products can be classified for multiple countries legal regulations at once.

• Number sets are useful in classifying the products more easily, on both a cross-country level and a cross-application level. 
• We can use a number set that’s defined and maintained to classify any product for more than one country at once and for more than one application area at once (for example, we can classify with ECCN/ICCN for Compliance Management and with HTS / Commodity Codes for Customs Management). 
• Through cross application classification both ECCN & HS Codes can be assigned in one shot through number set. 
• However, we cannot assign ‘no control’ for legal control / assign control grouping / assign peculiarity codes through number set.
• Control grouping is grouping of all the ECCN’s/ICCN’s into one control group there by reducing the workload of maintaining the license determination rules. 
• Peculiarity Codes are provided by the customs authority for easy identification of the products. This is mainly used in Germany. It can then be maintained as attributes in the license master. We can see in detail on control grouping and peculiarity codes in other post.
• The main benefit of Number set is time Saving in the classification process.

Example

You want to define a number set so you can classify products more quickly and easily. Using number sets, it is possible to classify products across countries and across applications. 

This means that you can assign customs codes for multiple countries and for different types of numbering schemes at the same time.

Business Requirement:

For example, if a material ‘M123’ is imported into the US, Canada & Brazil. We can then classify the part in the US with 8431438060, and then we can auto-assign 8431430090 to the CA HTS & 84314390 code to Brazil HTS (NCM). 

By this we can maintain one number set and auto assign to multiple countries.  Similarly, we can also assign number sets to multiple application areas (for compliance & Customs)

Configuration Steps:

1. Define Number Set

Path: SAP GTS – SPRO – GTS – General Settings – Numbering Schemes - Define Number Set.

• Click new entries and enter a new number set. For ex: NUMSET
• Then select the created number set and assign the required numbering schemes and select one numbering scheme as Reference scheme of Number Set. Only one numbering scheme can be selected as Reference scheme.

   For ex: NUMSET – 1) US HTS (Ref Scheme) 2) CA HTS 3) BR HTS 

2. Change Number Set

Path: SAP GTS Cockpit – Customs Management – Classification – Classification Master Data – Change Number Set.

• Enter the number set and execute. For ex: ‘NUMSET'
• Click the ‘ + ‘ icon to add the required tariff / HTS codes of the reference number scheme.  For ex: 8431438060 for US HTS
• Then maintain the assigned number on the right side. For ex: 8431430090 for CA HTS, 84314390 for BR HTS.

Options to Classify the products using Number Set:

1.    Classify Products via Worklist

Path: SAP GTS Cockpit – Customs Management – Classification Tab – Classification Section – Classify Products Via Worklist

• In the selection screen, choose Key date (Classification start date), Import/Export, legal regulation and Type of numbering scheme (101-HTS / 102 – Commodity Codes).
• Here choose “Adopt Derived Numbers”. Then if the reference number is selected in the classification, then all other numbering schemes in the number set will be classified through number set.
• If the selected number is not the reference number, then the underlying numbering scheme which was maintained in the customizing will be classified. For ex: US HTS used as reference numbering scheme in US Sch B numbering scheme. Then through this both US HTS and US SCH B will be classified as derived numbers.  
• Select “Check Usage in Documents” to classify the products which are currently used in the documents. With this setting the “Display classified Products” will be locked / greyed out to avoid the selection of all products.
• On the next, choose the required products and click on “Classify multiple products”, choose the reference number and click on “start mass classification” in the lower right corner.
• Now we can select the desired numbering schemes to be assigned from the number set/derived number and click on transfer.

 2)      Classify Products

Path: SAP GTS Cockpit – Customs Management – Classification Tab – Classification Section – Classify Products.

• Enter the product number, logical system group name. 
• Go to classification tab and select the legal regulation and click assign number set icon on the top. It will prompt for all the numbering schemes that can be classified together.
• Enter the number set, reference number, and select the required HTS / commodity code and click assign set for classifying the product.
• Click save to assign the classification to the product. All other countries numbering schemes would be classified now. 

3)  Assign Number Set to Several Products

Path: SAP GTS Cockpit – Customs Management – Classification Tab – Classification Section – Assign Number Set to Several Products.

• In the selection screen, choose key date (classification start date), Number set, reference number and logical system group (if any). If there are more products, then filter the selection based on the products or on any other additional attributes.
• On the next screen, Select the required products and click on “Assign Set”. 
• We get the success message as “All the numbers in the set have been successfully assigned to the product”. 
• Now the product classification indicator turns from Red to Green. This marks the end of the classification using the number set using this option.

With these three options we can easily classify the products for any countries / applications through one reference scheme. This is helpful for the companies using the same products for their global trade business across many countries.

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