SAP BusinessObjects GTS 8.0: How to Customize US Re-Export
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1 SAP BusinessObjects GTS 8.0: How to Customize US Re-Export Applies to: SAP BusinessObjects Global Trade Services 8.0 For more information, visit the Governance, Risk, and Compliance homepage Summary This document discusses US Re-Export and the criteria for US Re-Export. Describe a business scenario for US Re-Export and shows the required customizing settings and master data for US Re-Export Author(s): Company: Prarit Sehgal Created on: August 31, 2009 Regional Implementation Group Governance, Risk, and Compliance SAP BusinessObjects Division Version 1 SAP COMMUNITY NETWORK 2009 SAP AG SDN - sdn.sap.com BPX - bpx.sap.com BOC - boc.sap.com
2 Typographic Conventions Icons Type Style Description Icon Description Example Text Words or characters quoted from the screen. These include field names, screen titles, pushbuttons labels, menu names, menu paths, and menu options. Caution Note or Important Example Recommendation or Tip Cross-references to other documentation Example text Emphasized words or phrases in body text, graphic titles, and table titles Example text File and directory names and their paths, messages, names of variables and parameters, source text, and names of installation, upgrade and database tools. Example text User entry texts. These are words or characters that you enter in the system exactly as they appear in the documentation. <Example text> Variable user entry. Angle brackets indicate that you replace these words and characters with appropriate entries to make entries in the system. EXAMPLE TEXT Keys on the keyboard, for example, F2 or ENTER. SAP COMMUNITY NETWORK SDN - sdn.sap.com BPX - bpx.sap.com BOC - boc.sap.com 2009 SAP AG
3 Table of Contents 1. Business Scenario Create Sales Order Check Logs in SAP GTS system Create Sales Order Check Logs for the blocked sales order in SAP GTS system Background Information Prerequisites Step-by-Step Procedure - Customizing Define Country Group Define a Legal Regulation Define Determination Procedure for Active Legal Regulation Activate Legal Regulations at Country/Country Group Level Control Setting for Legal Control Service Configure Country Group of Legal Regulation for Re-Export Maintain Product FAQ Comments and Feedback Copyright SAP COMMUNITY NETWORK SDN - sdn.sap.com BPX - bpx.sap.com BOC - boc.sap.com 2009 SAP AG
4 1. Business Scenario When a foreign-based company imports products or components from the United States, 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. The industry, products and services used in this scenario is mentioned below: Industry: Automotive Products and services: Commercial vehicles In this scenario, consider a company located in Germany that builds fire fighting vehicles. To make these fire fighting vehicles, they import the engines directly from the U.S. and export the finished vehicles to Austria In order to be compliant with the U.S. export regulation, the company needs to check which of its transactions are relevant for US re-export and to consider them accordingly. 1.1 Create Sales Order In ERP system, call Transaction Code VA01, and enter details.
5 Enter data in the sales order and save Sold-to-Party: Material: GTS Order Quantity: 1 Plant: 1000 Price (Amount): 1040 Currency: EUR The order is saved
6 1.2 Check Logs in SAP GTS system In GTS system, under SAP Compliance management click Legal Control Export Click Display Existing Documents Enter reference number from feeder system under Document Data in Feeder System, click execute
7 Select reference number and click display log The order was not blocked in GTS because the hardware share of 24.04% for this component is below the threshold of 25% as customized. The de minimis threshold of country group USREX_UNCR is 25% as customized (customizing shown in next section).
8 1.3 Create Sales Order Create a new or edit the existing sales order with a different sale price
9 When you click Save, the document gets blocked this time.
10 1.4 Check Logs for the blocked sales order in SAP GTS system Check logs similarly to the previous example, this time the order is blocked because the re-export hardware share is 31.25% (250,00 EUR) which is higher than the defined value i.e. 25%
11 2. Background Information SAP GTS automates and streamlines complex export processes to ensure compliance with relevant regulations and mitigate the financial risks of global transactions. The De Minimis Calculation determines whether a product consists of high enough percentage of U.S. originating items to be subject to U.S. export regulations. The calculation depends on whether the destination is considered critical to U.S. security: Uncritical countries: Countries that the U.S. believes are not a potential threat Critical countries: Countries that the U.S. believes pose a potential threat For example, if an item is re-exported to an uncritical country, such as Austria, the U.S. originating components may contribute up 25% of the item price before the item is subject to EAR. However, if the same item is re-exported to a critical country, such as Iran, the U.S. originating components contribution must be less than 10% of the item price or the item is subject to Export Administration Regulations (EAR). 3. Prerequisites Necessary master data SAP ERP Creation and transfer of a customer master Creation and transfer of a material SAP GTS Maintenance or calculation of the hardware, software and technology values for the product Maintenance of determination rules for license types Deactivation of license that could be determined automatically Necessary user role / necessary user authorization: Standard Test User, i.e., role for Export Controls with authorization for corresponding Foreign Trade Organization and Legal Regulation.
12 4. Step-by-Step Procedure - Customizing 4.1 Define Country Group In GTS System: Transaction SPRO -> SAP Reference IMG Define Country Group Path: SAP Global Trade Services -> General Settings -> Legal regulation Define country group Click New Entries and add country groups Assign Countries to country group Path: SAP Global Trade Services -> General Settings -> Assign Countries to Country Group
13 Click New Entry, and assign the critical and non-critical countries to respective country groups. Here we consider Germany as a non-critical country and Iran as a critical country. Add details as shown below
14 4.2 Define a Legal Regulation Define a legal regulation of legal code Foreign Trade Laws or Prohibitions and Restrictions Path: SAP Global Trade Services -> General Settings -> Legal Regulations-> Define Legal Regulation Click New Entry and enter the following data Legal Regulation Description Type of Legal Code Import/Export Original Ctry of LR
15 Double click Assign Country Group, and select option from drop down. 4.3 Define Determination Procedure for Active Legal Regulation Define Determination Procedure for Active Legal Regulations Path: SAP Global Trade Services -> General Settings -> Legal Regulations -> Define Determination Procedure for Active Legal Regulations
16 Click New Entry, enter determination procedure and description Now in Assignment of Determination Strategy, Choose from following determination strategy and Partner group for determining active legal regulation. Enter partner group Exp.
17 4.4 Activate Legal Regulations at Country/Country Group Level Activate Legal Regulations at Country/Country Group Level Path: SAP Global Trade Services -> General Settings -> Legal Regulations -> Activate Legal Regulations at Country/Country Group Level Select your legal regulation and double click country group
18 Click New Entry and Add country groups 4.5 Control Setting for Legal Control Service Control Settings for "Legal Control" Service Path: SAP Global Trade Services -> General Settings -> SAP Compliance Management -> "Legal Control" Service -> Control Settings for "Legal Control" Service
19 Make entries in Re-Exports checks. Select currency, exchange rate, and legal regulation 4.6 Configure Country Group of Legal Regulation for Re-Export Configure Country Group of Legal Regulation for Re-Export
20 Path: Path: SAP Global Trade Services -> General Settings -> SAP Compliance Management -> "Legal Control" Service -> Configure Country Group of Legal Regulation for Re-Export Click New Entry Enter the following 1. Legal Regulation 2. Destination Country Grp 3. Country Group: Maximum Percentage * Choose option from Calculation Reaction *In the check of re-export regulations, a percentage of the value share of the used input materials in the exported goods (from the country that defined the regulation). If the value share of the product exceeds this percentage, a license from the responsible authorities is required.
21 Select Exclusion number to enter excluded tariff numbers, example EAR99 and save your entry 4.7 Maintain Product In SAP GTS system, under SAP Compliance Management click Classification/Master Data Under Export View for Customs Products click Maintain Products
22 Maintain all the products relevant for your scenario. Enter Logical System Group, Product Number, and click Execute PS: Please reference for information on licensing. For more details see FAQ. 5. FAQ A. What needs to be transferred from the Feeder System? In Transaction code /SAPSLL/MENU_LEGALR3 under Initial Transfer of master data tab Transfer Customers Transfer Material Masters Transfer BOMs
23 B. Any new screen in SAP GTS cockpit? Under SAP Compliance Management click Classification/Master Data Re-Export Calculation section is new. Here you can Calculate Multiple Products: Determine Re-Export Shares for Multiple Products
24 You can display Bill of product log, display product, and display messages from this screen Similarly, calculate Individual Products Calculate Changed Products Display Calculation Log Display Re-Export Data for Product
25 C. How to maintain a product in the SAP GTS system? Click maintain product, under Export View for Customs Products Enter product details Click Create data
26 Enter Legal regulation, FT Org, and Country Group Predefine hardware share here D. Can calculation logs be archived? Yes, to Archive Calculation Logs follow the following screen In SAP GTS cockpit, under System Administration click Archiving Under Re-Export tab, there is an option to Archive Calculation Logs 6. Comments and Feedback
27 Your feedback is very valuable and will enable us to improve our documents. Please take a few moments to complete our feedback form. Any information you submit will be kept confidential. You can access the feedback form at: 7. Copyright 2009 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, System i, System i5, System p, System p5, System x, System z, System z9, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/os, POWER, POWER5, POWER5+, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. These materials are provided as is without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall not be liable for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. SAP does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third party web pages nor provide any warranty whatsoever relating to third party web pages. Any software coding and/or code lines/strings ( Code ) included in this documentation are only examples and are not intended to be used in a productive system environment. The Code is only intended better explain and visualize the syntax and phrasing rules of certain coding. SAP does not warrant the correctness and completeness of the Code given herein, and SAP shall not be liable for errors or damages caused by the usage of the Code, except if such damages were caused by SAP intentionally or grossly negligent.
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