Legal Regulation Configuration setup in SAP GTS
Legal regulation is controlling elements that determine the custom and compliance law to be observed in GTS for business transaction executing in the back-end ECC system.
Configuration of Legal regulation
1.1 Define Country Group
SPRO >> SAP Customizing IMG >> SAP Global Trade Service >> General Settings >> Legal Regulations >> Define Country Group
1.2 Assign Countries to Country Group
SPRO >> SAP Customizing IMG >> SAP Global Trade Service >> General Settings >> Legal Regulations >> Assign Countries to Country Group
1.3 Legal Regulation:
Legal regulation is a central control component.
SPRO >> SAP Customizing IMG >> SAP Global Trade Service >> General Settings >> Legal Regulations >> Legal Regulation
All the application area (Embargo, SPL, Preference processing, License…), we are defined under legal regulation.
Type of Legal code: The purpose of legal code is when we go individual application area (embargo, SLP, LOC….) there we cannot define any new Legal regulation. Due to this legal code assignment in legal regulation, individual legal regulation is appeared in individual application area.
00 Foreign Trade Laws (AWV, EAR,..)
01 Customs Processing
03 Prohibition and Restitution
06 Preference Law
07 Transit Processing: Import/Export
09 Letter of Credit Processing
10 External Application
These legal codes control all the legal regulation should not display in all application area. Based on legal code, legal regulation will displayed in individual application area.
If you define legal code 01 and 03 – then related to this legal regulation will appeared in Embargo, SPL and License determination
if, 06 Preference
if, 07 Transit/Presentation
if, 08 Restitution (agriculture client– European client)
if, 09 Letter of credit
Import/Export: This indicator controls the direction for which the corresponding document is intended:
Original Country of LR: This indicator defines the country from which the legal regulation originates.
In order to system perform screening for custom documents, we define the setting at legal regulation level and then assign the legal regulation to that particular application area
1.4 Activate legal regulation at country/country group level;
SPRO >> SAP Customizing IMG >> SAP Global Trade Service >> General Settings >> Legal Regulations >> Activate Legal Regulations at Country/Country Group Level
While doing export and import we need to define the county are associated and for which country this legal regulation is applicable.
By activating legal regulation, system will consider which legal regulation are applicable to which county.
Legal Regulation can we activate in 6 level
- Country level
- Country/Country level
- Country/Country group level
- Country Group level
- Country Group /Country level
- Country Group /Country group level
If I activate legal regulation (ZANS) under “US” country. Then What ever the control settings are available under this ZANS-legal regulation is applicable to US transaction (customer transaction) screening process.
1.5 Define determination procedure for Active Legal regulation:
SPRO >> SAP Customizing IMG >> SAP Global Trade Service >> General Settings >> Legal Regulations >> Define Determination Procedure for Active Legal Regulations
This will help to business to define the strategy.
Example: If we have 2 legal regulation for one country then how system consider only one legal regulation for one country.
To fulfill this requirement, we are defining procedure and that procedure need to assign to the strategy.
ZANS US Country
ZANP US/CA Country Group
Question: I have one requirement, while performing embargo screen for custom document, system need to consider control setting determining legal regulation which is assign to country of custom transaction.
Ans: Define new procedure and assign the strategy like this
Then assign that procedure to the embargo, then while system performing screening system will consider this procedure.
Using above configuration step, we can maintain legal regulation in SAP GTS system.