Using HS code in legal control checks for Imports/Exports

Why Tariff numbers in Legal Control?

In this blog post, you will understand how Tariff numbers can be used in the SAP Global Trade Services (SAP GTS) Legal control solution. Sometimes, during the creation of Customs Declaration, the business users finds that some of the products are not classified for the Customs Legal regulation.

While filing the Customs Declaration, the business users would like to avoid the time delays caused due to the missing HS code classification of the Customs Products.

This Tariff Number classification in the Legal control will help the business users to find the missing HS classifications for the Customs products at the start of the Purchase or Sales process. This will enable the users to classify the product in Customs Management before the creation of Customs Declaration.

Data to be used: –

The files provided by third party data providers are with schema type ‘101’ for Tariff numbers and ‘102’ for Commodity code.

‘102’ type numbering schemes files can be loaded only to the Commodity Code numbering schemes in SAP GTS. This Commodity Code numbering scheme will not be visible under the ‘legal control’ tab of the Product Master, so the Commodity Codes can’t be used in Legal Control Compliance check.

‘101’ type numbering schemes files can be loaded only to the Tariff Numbers numbering schemes in SAP GTS. Under the configuration node “Assign Numbering Schemes to Legal Regulations of the Application Areas” the ‘101’ type numbering scheme should be assigned to the ICCN, Legal control & Tariff number application areas.

The Tariff Numbers numbering scheme can’t be classified via worklist and should be done through Product Master only.

If the HS code numbering scheme is not assigned under both ‘Assign Scheme for ICCNs’ and ‘Assign Scheme for Numbers in Legal Control’ application areas, then the numbering scheme will not be available in the ‘Legal Control’ tab of the Product Master

Fig1: – Assign Scheme for ICCNs

Fig2: – Assign Scheme for Numbers in Legal Control

If the HS code numbering scheme is not assigned under ‘Assign Scheme for Tariff Numbers’ application area, then the numbering scheme will not be available in License Master

Fig3: – Change Import/Export License

When the numbering scheme is assigned under the ‘Assign Scheme for Tariff Numbers’, it enables the user to enter the Tariff numbers in License Master.

Fig4: – Assign Scheme for Tariff Numbers

Now, maintain the HS code in the License Master.

Fig5: – Change Import/Export License

How to test: –

When a Sales order is created in SAP S/4HANA system, it is blocked in SAP GTS system as the system could not find any import/export licenses. The appropriate license master is not found as the product master is not classified with HS code.

Fig6: – Display Logs

Now, classify the Product master with the appropriate HS code

Fig7: – Edit Products

After rechecking the customs document in the SAP GTS system, a valid license is found and assigned to the customs document. Now the Sales Order is not blocked for Legal Control.

Fig8: – Display Logs

I hope that this blog post provided the work around of having the Tariff Numbers in the Legal Control check. Please feel free to provide me with your comments/suggestion to improve this blog post.