The Customizing settings for legal control let you configure the system to determine the correct import and export licenses for planned import and export transactions and depreciate them automatically. You can configure additional settings for special processes such as re-export.
Process
Carry out the following steps in Customizing for Compliance Management:
1. Define the procedure for determining the active legal regulation (see Assigning the Determination Procedure for Active Legal Regulations [page 181]).
2. Activate the legal regulation (see Activating Legal Regulations [page 181]).
3. Define the procedure for determining the licenses (see Defining the Determination Procedure for License Types [page 182]).
4. Configure the control settings for legal control (see Configuring Control Settings for Legal Control [page 183]).
5. Configure the country groups for processing re-exports (see Configuring the Country Group for Re- Exports [page 187]).
6. You define agreement types, in which you can link multiple import or export licenses (see Defining Types of Agreements [page 190]).
7. Define the settings for comparing addresses in licenses (see Defining Control Procedures for Address Comparison for License Types [page 189]).
8. Define the depreciation groups that the system uses for licenses in import and export transactions (see
Defining Depreciation Groups [page 190]). Define the license types (see
Defining Import and Export License Types [page 191]).
6.5.1
License Determination in Legal Control
The customs authorities or foreign trade offices of a country can define restrictions for the import and export of certain products and product groups, either independently or through treaties with other countries. Accordingly,
the authorities issue licenses for the selected products or product groups to companies upon request, in which the values or quantities for these special products are limited. These products therefore require licenses. In addition, the values that you have to deposit with the authorities to obtain a license can serve as an additional security. As a result, you have to check your foreign trade processes for bans and restrictions in legal control, dependent on the valid legal regulation.
You check the customs documents, which the system Global Trade Services (GTS) created based on a logistics document in the feeder system for a business transaction in the GTS system. If this customs document contains products that require licenses, you you have to assign these licenses. The system can assign licenses
automatically through license determination.
The description of license determination below uses an export transaction as an example.
Integration
In legal control in the GTS system, license determination for a business transaction for imports and exports is based on the following data:
● Transaction data from the customs document, which is a replicate of a logistics document from the feeder system
● Settings in Customizing for the legal regulation and license types ● Master data in which the licenses and product details are saved
The following diagram lets you track the interaction between the individual data sources during export that results in the assignment of a license in the customs document.
Figure 2: License Determination in the GTS System During an Export
For an export transaction, the system runs the following process steps to determine the relevant license type for a business transaction from the business transaction, and in turn the license that it assigns in the customs
1. When the document is transferred from the feeder system, the GTS system creates a customs document as a replicate of the feeder system document. The following data in this customs document is relevant for determining the license:
○ Country of departure ○ Country of destination
○ Product information in the document item
○ Check date from the assignment of document data ○ Business partners
○ Values and quantities of the products in the document items that require licenses
2. The system analyzes the country of departure in the customs document and uses the following Customizing settings to determine which legal regulation is relevant for the business transaction:
○ Determination procedure for the legal regulation for export control ○ Determination strategy of the legal regulation for export control
3. The system then determines which license type is relevant for the business transaction, based on the following data and settings:
○ The system determines the following data for the country of destination in the customs document: ○ Customizing settings for the determination procedure for the license type
○ Master data settings for the determination strategy for the license type
○ For products in the document items of the customs document, the system determines the export control classification numbers with which you have classified the products in the master data of the GTS system. The export lists can differ depending on the legal regulation. The authorities specify in the export control classification numbers whether a product requires a license and, if so, in which specific constellations of business transactions this requirement applies.
4. For customs document data, the system analyzes the Customizing settings to determine whether it can find and apply a license with the license type determined for the business transaction. You defined which data the system takes into account during this check with the relevant attributes for determining licenses in the definition of the license type. This can include data such as the following:
○ Country of destination ○ Item quantities ○ Item values ○ Customer
○ Key date for the check for legal control, according to the customs document as check date The system can also search for valid licenses dependent on this check date.
You define the characteristics in the Customizing settings for a license type to determine that a license of that type is only valid for specific export control classification numbers or organizational units.
5. The entered license in the master data then defines the specific characteristics for that license, in
accordance with your agreement with the authorities. The system then takes these specific characteristics for a located license and compares them with the data from the customs document, to determine whether it can sue that license for the business transaction.
6. If the system finds a valid license, it checks the customs document items of the business transaction to see whether they are covered by the available quantities and values in the export license. If the license covers the transaction, the system assigns the license to the customs document by recording the license number in the customs document.
The system transfers this information into all follow-on documents for the customs document, or conducts license determination in the follow-on documents analogous to the customs document. This enables you to
document legal compliance of the transaction for export control in communications with the customs authorities for customs declarations, based on the assigned license number.
6.5.2
Assigning the Procedure for Determining Active Legal
Regulations
Use
With the determination procedure for the active legal regulations, you determine the procedure the system uses when checking the legal regulations for your import and export documents.
Procedure
1. Go to the Implementation Guide (IMG) for SAP Global Trade Services and choose SAP Compliance Management “Legal Control” Service Assign Determination Procedure to Determine Active Legal Regulations
2. Choose New Entries and select the determination procedure you want to use.
Note
For more information, see the IMG activity documentation.
6.5.3
Activating Legal Regulations
Use
Here you can define the precise scope of the legal regulation checks the system performs for your import/export documents. You have the following options:
Legal control import ● Check: Not Activated ● Check: Receipt (Exclusively) ● Check: Import (Exclusively)
● Check: Receipt/Import (excluding domestic) ● Check: Receipt/Import (including domestic) Legal control export
● Check: Not Activated ● Check: Issue (Exclusively) ● Check: Export (Exclusively)
● Check: Issue/Export (excluding domestic) ● Check: Issue/Export (including domestic)
Prerequisites
You have activated the legal regulations at the highest level in Customizing for SAP Global Trade Services unter SAP Global Trade Services General Settings Activate Legal Regulations .
Procedure
1. Go to Customizing for Global Trade Services under Compliance Management Embargo Check and choose Activate Legal Regulations.
2. Choose New Entries and select the legal regulations against which you want the system to check your documents.
6.5.4
Defining Determination Procedures for License Types
You use the determination procedure for import/export licenses for legal control in order to manage the license types that are relevant for the legal regulations. You can assign determination procedures to the following determination tables:
● Legal Regulation/Country/Country Grouping Level ● Legal Regulation/Country/Control Class Level ● Legal Regulation/Country/Control Class Level
● Legal Regulation /Country Group/Control Grouping Level ● Legal Regulation /Country Group/Control Grouping Level ● Legal Regulation/Country Level
● Legal Regulation/Country Group Level ● Legal Regulation/Control Grouping Level ● Legal Regulation/Control Class Level ● Legal Regulation Level
Note
In export control “country” refers to the country of destination and in import control “country” refers to the country of departure. The country group is determined in accordance with these countries. The control grouping and control class attributes are determined from the product master of the document item product.
Procedure
1. Go to the Implementation Guide (IMG) for SAP Global Trade Services and chose SAP Compliance Management “Legal Control” Service Define Determination Scheme to Automatically Determine License Types
2. Choose New Entries and select the procedures for determining license types that you want the system to use.
6.5.5
Configuring Control Settings for Legal Control
To use the checks in the Legal Control service, you have to define their use in the process and their detailed control settings. You can use the parameters in this activity to do so.
Features
You have to make the following settings for each legal regulation:
● Product Master Maintenance: There are two options regarding the scope of the check for customs products. You can either specify that every product is subject to legal control or that no products are subject to legal control. If all products are to be checked, you can set individual products in the customs product master to No Control. If you have specified that no products are subject to the legal check, you can activate the check in the customs product master by setting the Individual Maintenance indicator.
● Control Grouping Active: If you set this flag, you can enter control groupings in the customs product master and use them to find license types.
● Peculiarity Code Act. for Goods: If you set this flag, you can enter peculiarity codes in the customs product master and use them as an attribute in the license types.
● Partner Group to Determine Country of Departure/Destination: The country of departure and country of destination of the export result from the partner functions contained in the document and in this partner grouping. The system uses the first partner function that is contained in both the document and the partner grouping. It does not check any other partner functions.
Example
The partner grouping contains the partner functions end customer and consignee. If the document to be checked does not have an end customer, the system uses the country of the consignee as the country of destination to determine the license type.
● License Type Det. Procedure: The system determines all the relevant license types with the procedure. ● Cascade Active Within Approval Type Determination: If you set this flag, the system can determine the license
types in hierarchical order.
Example
If no license is available for license type "A", the system uses license type "B". You enter this hierarchy with the sequence numbers in the determination tables.
Allowed Status: You have to enter all statuses for each legal regulation in a license. You have to assign the internal status Application accepted, license active to precisely one status, as only licenses with this status may be used in the automatic determination of licenses
Assign Time Zone to Deadline Type: You have to enter a time zone for all deadline types in Customizing under Global Trade Services General Settings Maintain Time Zones .
● Check multiple country groups during license type determination
You can set this flag to include all the relevant country groups during the determination of license types. If you do not set this flag, the system only considers the country group you have set as the default. This flag involves the country groups that you enter in Customizing for Global Trade Services under General Settings Legal Regulation Define Country Groups .
Example
In the case of an export to Canada, the system applies the determination rules for license types to all country groups where you have entered Canada.
● Send Mail
When you set this flag, the system sends an e-mail notification to a defined group of users for transactions that are blocked due to missing licenses.
Note
You configure the user groups, along with the control settings to define which user group the system notifies for which document blocks, in the application. To do so, you can use the functions in the area menu of the Global Trade Services (GTS) system. To start the area menu, enter transaction code /SAPSLL/ MENU_LEGAL and choose System Administration System Communication Notifications Maintain User Groups .
● Manual Assignment Proposal to propose manual assignment
These selection criteria let you control the default setting of the change indicator in the application, which you have to specify when you manually assign licenses to blocked documents. The system fills the change flag field with the default value that you selected in this Customizing activity under Manual Assignment Proposal.
● Transfer of legal control data
If documents are blocked due to checks in legal control, you can assign valid licenses to release them and continue the process. If you want the system to use these manually assigned licenses for subsequent documents, you can activate the transfer of legal control data. The following selection options are available: ○ Do not transfer license data
○ Transfer license data with limited check
The system checks the control data from the previous item based exclusively on the validity and status. The system may also check values and quantities, depending on the attributes of your import/export license type.
○ Recheck license data for new document
The system checks all the criteria for which you have defined a license type and assigns the license that you assigned to the previous document. If several licenses are possible for a document item, the license for the item in the previous document is assigned has priority for the current document item.
Note
If you want the system to transfer the control data according to your settings in this Customizing activity, you have to set the Adopt Control Data from Previous Item flag in the activation of item categories for Legal Control.
● Check external license number
You can define the system response in cases where several licenses are entered with identical external license numbers for a license type.
● The Document-Related BOMs area lets you configure the system response in legal control for military or dual-use goods, for example, according to ITAR regulations.
○ If you select Ignore BOM Items in the dropdown list, the system runs export control for the main items and skips the checks for the subitems in a bill of material.
○ If you select Determine for All BOM Items from the dropdown list, the system checks whether an export license is required for each individual item and if so, tries to assign them.
○ If you select Stop Determination at First Check from the dropdown list, the system stops the check for lower BOM levels as soon as it determines an export license for a leading assembly part in the BOM.
Note
To use the bill of material, you have to explode it in the feeder system and filter out the control-relevant components before transferring them to SAP Global Trade Services with legal control in Compliance Management. You can use the following BAdIs for orders and material documents:
○ /SAPSLL/BOM_SO0A_R3 (explode document BOMs for sales documents)
○ /SAPSLL/BOM_SO0A_R3 (explode document BOMs for outbound delivery documents)
For the system to establish a link between the BOM ID and the transferred document, you must have defined the BOM ID in the following BAdIs for document mapping in Customizing in the feeder system:
○ Sales and Distribution Foreign Trade/Customs SAP Global Trade Services - Plug-In Business Add-Ins for SAP Global Trade Services Change and Expand Document Data for Transfer
or
○ Materials Management Purchasing Foreign Trade/Customs SAP Global Trade Services - Plug- In Business Add-Ins for SAP Global Trade Services Change and Expand Document Data for Transfer
● In the Logistics Processes area, you can set the flag to take special processes into account, which notes the activation of the special logistics processes in legal control. This lets you influence ITAR tracking for document items, for example, or suppress the reduction of a license.
Note
To use these special logistics processes, you have to use BAdIs to determine these special processes in the feeder system and transfer them to the GTS system. To do so, you use the BAdIs in Customizing, which you can reach under the following paths:
○ Sales and Distribution Foreign Trade/Customs SAP Global Trade Services - Plug-In Business Add-Ins for SAP Global Trade Services Change and Expand Document Data for Transfer BAdI for Mapping and Enrichment of Data from Sales Documents (SD0A)
or
○ Materials Management Purchasing Foreign Trade/Customs SAP Global Trade Services - Plug- In Business Add-Ins for SAP Global Trade Services Change and Expand Document Data for Transfer BAdI for Mapping and Enrichment of Data from Outbound Deliveries (SD0B)
● In the re-export check area, you can set the Re-Export flag to activate legal control for re-exports and configure the following settings:
○ The customs value currency defines the currency in which the system calculates the proportional values. ○ The exchange rate type, which you configure in the basic settings of SAP NetWeaver, defines the
exchange rate the system uses for calculation. Currency translation is needed cases such as the following:
○ The product master is missing entries for the hardware share and you have set the system to use sales prices. If the sales price currency differs from currency you entered as the customs value currency, which you use for calculation, the system has to translate the currency values.
○ The document currency does not match the customs value currency you have defined for calculation.
○ Reference Legal Regulation: If you define a legal regulation for re-exports that requires an export license for another country when the maximum value proportion is reached, you can enter the legal regulation of the other country as a reference. The system then determines a valid export license based on the reference regulation.
Activities
● Open the Customizing structure and choose Global Trade Services Compliance Management Legal Control Control Settings for Legal Control .
● Choose New Entries and select the legal regulations you want to use and add a description. ● Enter the control parameters for the legal regulation.
● In the dialog structure, choose Allowed Statuses and put the statuses into sequence.