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
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Table of Contents 1. Business Scenario... 1 1.1 Create Sales Order... 1 1.2 Check Logs in SAP GTS system... 3 1.3 Create Sales Order... 5 1.4 Check Logs for the blocked sales order in SAP GTS system... 7 2. Background Information... 8 3. Prerequisites... 8 4. Step-by-Step Procedure - Customizing... 9 4.1 Define Country Group... 9 4.2 Define a Legal Regulation... 11 4.3 Define Determination Procedure for Active Legal Regulation... 12 4.4 Activate Legal Regulations at Country/Country Group Level... 14 4.5 Control Setting for Legal Control Service... 15 4.6 Configure Country Group of Legal Regulation for Re-Export... 16 4.7 Maintain Product... 18 5. FAQ... 19 6. Comments and Feedback... 23 7. Copyright... 24 SAP COMMUNITY NETWORK SDN - sdn.sap.com BPX - bpx.sap.com BOC - boc.sap.com 2009 SAP AG
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.
Enter data in the sales order and save Sold-to-Party: 10005 Material: GTS-14005 Order Quantity: 1 Plant: 1000 Price (Amount): 1040 Currency: EUR The order is saved
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
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).
1.3 Create Sales Order Create a new or edit the existing sales order with a different sale price
When you click Save, the document gets blocked this time.
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%
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.
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
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
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
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
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.
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
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
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
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.
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
Maintain all the products relevant for your scenario. Enter Logical System Group, Product Number, and click Execute PS: Please reference http://www.bis.doc.gov/licensing/index.htm 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
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
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
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
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
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