Skip to main content

Posts

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...
Post a Comment
Read more

Partial Embargo based on Region

Embargo: Embargo Compliance Screening  is mainly used for screening the business partner countries used in the import/export transaction. Business partners are screened to make sure the company is not doing business with any embargo nations as listed by the United Nations / under any sanctions. We can maintain full embargo / partial embargo situations in SAP GTS. In outbound transactions (export) we can screen the partner functions like sold-to-party, ship-to-party, bill-to-party, payer, End user/Ultimate consignee, contact persons, Freight forwarders/Carriers and any client-specific partner functions on the sales order / Outbound delivery / Customs export declaration. In Inbound transactions (import) we can screen the partner functions like vendor, Goods supplier, Freight forwarders/Carriers and any client-specific partner functions on the Purchase order / Inbound delivery / Customs import declaration. E-mail functionality can be enabled to send mail to particular person for any...
Post a Comment
Read more

US Export Controls - ITAR vs. EAR

Introduction: The United States government imposes export control to protect national security interests and to promote foreign policy objectives.  Export control laws regulates, restrict the release of critical items, technologies, information, and services to any foreign nationals, within and outside of the United States, and in the foreign countries. Due to constant changes in the export control reforms, it's hard for the business to distinguish between these two regulations and to identify under which regulation their products fall under.  The US government has two main regulations in place to control the export of any military / defense / dual-use related items.  ITAR   -  I nternational  T raffic in  AR ms, This regulation is for regulating the manufacturing & transactions involving the defense-related products . EAR - The E xport A dministrative R egulations,  This regulation is for regulating the dual-use items which are not covered...
Post a Comment
Read more

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...
Post a Comment
Read more

US AES Filing using SAP GTS

Introduction to US AES Filing: Automated Export System (AES) is a proven technology/system to file the export transactions through online/digital mode. Before AES, US export filing was done through paper which will be time consuming and error prone. AES was implemented in phases around different US ports. Phase 1 was started in 1995 with five vessel ports and later in 1996 expanded to all other ports based on the positive outcome of Phase 1. In 1997 AES was expanded to receive the EEI for all other modes of transport like air / land. The Automated Commercial Environment (ACE) AESDirect is the online web-portal for submitting the EEI to the US AES system. SAP Labs is one of the authorized software vendor who is certified to submit the transactions to US CBP electronically. There are many well known companies (like Oracle, HPE, etc..) who are authorized to communicate to US CBP systems electronically. Required shipment data / Commodity EEI (Electronic Export Information) can be transfe...
Post a Comment
Read more

SAP GTS Modules

SAP GTS Modules Compliance Management: Sanctioned Party Screening (SPL): This sub-module is mainly used for screening the business partners used in the import/export transaction. Business partners are screened to make sure the company is not doing business with any bad/restricted persons/terrorists/entities. We can use different search comparison procedures like SAP GTS / SAP TREX / SAP HANA search algorithms in SAP GTS 11.0.  However we can use only SAP HANA search procedure/algorithm in the latest SAP GTS, edition for S4 HANA. In outbound transactions (export) we can screen the partner functions like sold-to-party, ship-to-party, bill-to-party, payer, End user/Ultimate consignee, contact persons, Freight forwarders/Carriers and any client-specific partner functions on the sales order / Outbound delivery / Customs export declaration. In Inbound transactions (import) we can screen the partner functions like vendor, Goods supplier, Freight forwarders/Carriers and any client-...
Post a Comment
Read more