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Table of Contents

EXPORT LICENSE………………………………………………………………………..1

     PRODUCT CLASSIFICATION. ……………………………………………………1

          DEFINING NUMBER SCHEME………………………………………………. 2

          CLASSIFICATION OF MATERIAL…………………………………………..3

    ACTIVATE   LEGAL REGULATION……………………………………………… 4

    DEFINE LICENSE TYPE……………………………………………………………. 5

    LICENSE DETERMINATION STRATEGY………………………………………- 6

   CONTROL SETTINGS FOR LEGAL CONTROL SERVICES……………….- 6

   VISIO FLOW OF LICENSE DETERMINATION………………………………..- 7

   HYPOTHETICAL SCENARIO………………………………………………………- 8

EXPORT LICENSE:

Many Products requires valid license for export and import process, the determination of valid license either for export or Import is taken care by License determination module in SAP GTS. In license determination for export departure company and for import destination country come into picture. SAP GTS allows maintaining the valid licenses and if while in the process of license determination the license in missing for a product it puts the Sales order/ Delivery on the block.

Legal Control Services provide a control over what a company Export or Import by defining the required License for the Product

PRODUCT CLASSIFICATION:

For License to be determined Product has to be classified for ECCN, An Export Control Classification Number (ECCN) is a specific alpha-numeric code that identifies the level of export control for articles, technology and software.  ECCN codes are organized according to the technical parameters and/or end use of the hardware, software or technology that is being exported.

The structure of the ECCN has 5 character consisting of 3 main parts:   3 A 001

3      PRODUCT CATEGORY (Viz, E- Electronics, 4-Computer)

A     PRODUCT GROUP/Class (Viz.  E-Technology, D-Software)

001  REASON OF CONTROL/Export List number (Viz. 001-099 National Security)

.

Flow for Product Classification:

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DEFINING NUMBER SCHEME:

You have to define a Number Scheme in GTS so that ECCN can be created and Product can be classified.

This numbering scheme contains the structure of the export list’s nomenclature. It is the basis for

The manual maintenance or upload of individual export list numbers. For every national export list, you have to define a specific numbering scheme in Customizing for SAP GTS

SAP Global Trade Services–> General Settings–> Numbering Schemes –>Define Numbering Scheme of Export Lists

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Here we defined Number Scheme ECCN.

Now you assign the numbering scheme ECCN to a Export License legal regulation.

SAP Global Trade Services –> General Settings–> Numbering Schemes–>Assign Numbering Scheme of Export List for License Maintenance.

This assignment allows maintain ECCN numbers in the licenses you use and in the customs product master.

Here you see Legal Regulation LEGREG is assigned with Number scheme ECCN.

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There is  another assignment

SAP Global Trade Services –>General Settings –>Numbering Schemes –>Assign Numbering Scheme to Export List for Legal Control.

This assignment is done for  License Determination purpose and only relevant when license determination has the ECCN as one of the parameter.

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CLASSFICATION OF MATERIAL:

First you have to create ECCN so that you can classify material for ECCN. You have to go to GTS Main Menu Tcode /n/sapsll/menu_legal.

SAP Compliance Management –>Classification master Data–>Export Control Definition–>Maintain Export control Classification numbers.

Here you first create Category and then you create respective ECCN

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You have to classify the material for ECCN, for the purpose you have to go to GTS Main Menu Tcode /n/sapsll/menu_legal

SAP Compliance Management–>Classification master Data–>Export View for Customs Product (If doing for Export) –>Maintain Products

Here you can see the Number Scheme ECCN which is assigned to Export Legal Regulation LEGREG

You have to assign ECCN number , Grouping and Peculiarity code which will complete the classification of material for ECCN , if you do not want a material  to be controlled by license you have to check the Box marked as No control in that case you need not assign the values of ECCN, Grouping and Peculiarity code

Grouping is the ECCN control group which is one of the determining factors for License determination strategy. (Tcode /SAPSLL/CCGR to Define control group)

Peculiarity code is CCATS (Commodity Classification Automated Tracking System) is an alpha-numeric code assigned by BIS (Bureau of Industry and Security) to products. Software companies provide the CCATS number because some encryption exports require the exporter to make post-shipment reporting to BIS on a bi-annual basis and the CCATS number is amongst one of the mandatory elements required for reporting. (Tcode: /SAPSLL/CCSH to define Peculiarity code)

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ACTIVATE LEGAL REGULATION:

Legal  Regulation of Legal control has to be activated for the country for which service is required in case of  Export Legal Regulation  has to be activated  for  the Country from which the product will be shipped and in case of Import  Legal Regulation has to be activated  for  the country to  which product will be shipped .

SAP Compliance Management –>Legal Control Service–>/wp-content/uploads/2013/04/7_210251.png

In addition to Activating the Legal Control legal regulation a determination procedure hast to be assigned first  which will  determine the Legal Regulation of Legal control  which is active ,this you will do  under :

SAP Compliance Management –> Legal Control service –>Assign Determination Procedure for Active Legal Regulations

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Determination procedure control how  Active legal regulation will be identified, e.g if Determination procedure is at country level then active Export legal regulation for license will be identified based on Departure country. The Determination procedure consists of different criteria viz Country level, Country Group Level, Country/Country Group Level etc.This is defined under:

General Settings–>Legal Regulations–>Define Determination Procedure for Active Legal Regulation/wp-content/uploads/2013/04/16_210255.png

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DEFINE LICENSE TYPE:

SAP GTS allows to determine required License for the material when ever there is cross border movement for the same either export or import. So to able to create License in GTS first you have to define the License type. Suppose you want to determine an Encryption License so first you have to define a License type ENC in GTS and then you can create License for ENC License Type.

SAP Compliance Management –>Legal Control” Service –>Define License types

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Attributes

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You have to choose objects based on which License type will be determined and further you can define the whether attributes re allowed or not for each object

  • Foreign trade organization
  • Legal unit
  • Business partner
  • Partner function
  • Product number
  • Control class (export control classification number)
  • Document number from feeder system
  • Country of departure/destination
  • Peculiarity code
  • Import code number

Also you have to define the Partner Group if you use Business Partner as one of the object with Partner Function object.  You have to define the various allowed status (viz Active, Created, Expired etc…) For each License type

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Define Determination Procedure to Automatically Determine License:

You define a determination procedure to enable the system to determine automatically the license types that are appropriate to specific business transactions. The determination procedure you define here controls how the system determines the license types that are relevant to a specific legal regulation.

The Determination Strategy consists of different criteria viz Country level, Country Group Level, Country/Country Group Level etc.

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Control Group means the ECCN Control group and Control means here ECCN.

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LICENSE DETERMINATION STRATEGY:

Once you define the Strategy you have to maintain Determination strategy to determine different License Types.

  1. SAP GTS MENU (Tcode: /n/SAPSLL/MENU_LEGAL)–>SAP Compliance Management –>Legal Control –Export–>Determination Strategy for License Type–>Maintain Determination Strategy.

Suppose you have chosen CD03- Country Group /Control Group the License Determination Strategy

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You have to maintain entry here for all the license type you want to be determined, as shown above the Determination for NLR  where ECNGRP is ECCN group and CNTRYGRP is country group.

Basically :Legal Regulation + Country grp (Destination country) + ECCN group determines the License type and this is called license determination strategy

CONTROL SETTINGS FOR LEGAL CONTROL SERVICES:

You can maintain different control setting for the Legal control Service which will broadly include control for License Det. Strategy, Partner Group (which will be used to determine ship to Country and Ship from country for Export and Import scenario respectively) and also you can define Allowed status for License and Assign time zone to Deadline type

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If you using ECCN group for License Determination you have to activate the “Control Grouping Activated “

Check Box. If you intend to used Peculiarity code (customs codes assigned by the customs authorities to provide them with information on the specific product you are importing or exporting, You can assign these peculiarity codes to your product either directly in the master data maintenance for customs products or indirectly in the import or export license maintenance transaction (as a license attribute) you have to check the Peculiarity code Act. for goods check box.

Once configuration for Legal control has been done you have to create License for respective License type:

SAP GTS MENU (Tcode: /n/SAPSLL/MENU_LEGAL)–>SAP Compliance Management –>Legal Control –Export–>Export License –>Maintain Export License.

Based on the License type object chosen in configuration you will have option to maintain values here, like in shown pic you can maintain ECCN ,Country Dep/Dest ( Departure for Import and Destination for Export )

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VISIO FLOW OF LICENSE DETERMINATION:

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HYPOTHETICAL SCENARIO:

Sales order created for Prodcut XYZExport shipped from Plant ABC in US (USA)to IN ( INDIA)

  

Steps that will follow the determination of License           

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6 Comments

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  1. Nishant Grover

    Sameer, its an excellent elaboration about the working of export license determination.

    Would you have some explanation on working of license determination with multiple countries in the itinerray of the order. Say, in the above example, the products are shipped from US to IN. What will be the behavior say, when there is a transit in Italy (IT). Will the license determination be from US to IT and then from IT to IN or a direct license fron US to IN will be needed. And further, if there are multiple transit points, what should be behavior of the license determination.

    Thanks a lot in advance!

    Regards,

    Nishant

    (0) 
  2. venu gopal

    Dear ,

    This is very good document , in GTS server i could not able to find  the menu path for

    SAP Global Trade Services –> General Settings–> Numbering Schemes–>Assign Numbering Scheme of Export List for License Maintenance.


    Please try to help me .

    (0) 

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