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SAP GTS - US Reexport Controls

Introduction: The U.S Department of Commerce regulates exports and re-exports of "dual-use" items through EAR (Export Administrative Regulations). If any controlled product is of U.S origin or in anyway connected with U.S then even if it's shipped anywhere from outside the U.S to any other countries, it should be compliant with EAR and require a license from the U.S BIS (Bureau of Industry and Security). When a foreign-based company imports products or components from the U.S and uses them in its production, and then exports the produced materials to another country, the process is known as U.S. Re-export and is subject to U.S. regulations.  Firstly, we need to determine if any foreign-produced materials that contains the U.S origin components are subject to EAR or exempted based on the de-minimis exception. Here the ultimate destination countries are classified as "Non-Critical / Friendly Countries" and...

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 gro...