EXPORT LICENSE DETERMINATION-SAP

GTS

Table of Contents
EXPORT LICENSE………………………………………………………………………..1

PRODUCT CLASSIFICATION. ……………………………………………………1

DEFINING NUMBER SCHEME………………………………………………. 2

CLASSIFICATION OF MATERIAL…………………………………………..3

ACTIVATE LEGAL REGULATION……………………………………………… 4

DEFINE LICENSE TYPE……………………………………………………………. 5

LICENSE DETERMINATION STRATEGY………………………………………- 6

CONTROL SETTINGS FOR LEGAL CONTROL SERVICES……………….- 6

VISIO FLOW OF LICENSE DETERMINATION………………………………..- 7

HYPOTHETICAL SCENARIO………………………………………………………- 8

EXPORT LICENSE:

Many Products requires valid license for export and import process, the determination of valid license
either for export or Import is taken care by License determination module in SAP GTS. In license
determination for export departure company and for import destination country come into picture. SAP
GTS allows maintaining the valid licenses and if while in the process of license determination the license
in missing for a product it puts the Sales order/ Delivery on the block.

Legal Control Services provide a control over what a company Export or Import by defining the required
License for the Product

PRODUCT CLASSIFICATION:

For License to be determined Product has to be classified for ECCN, An Export Control Classification
Number (ECCN) is a specific alpha-numeric code that identifies the level of export control for articles,
technology and software. ECCN codes are organized according to the technical parameters and/or end use
of the hardware, software or technology that is being exported.

The structure of the ECCN has 5 character consisting of 3 main parts: 3 A 001

3 PRODUCT CATEGORY (Viz, E- Electronics, 4-Computer)

A PRODUCT GROUP/Class (Viz. E-Technology, D-Software)

001 REASON OF CONTROL/Export List number (Viz. 001-099 National Security)

Flow for Product Classification:

Page 1

DEFINING NUMBER SCHEME:

You have to define a Number Scheme in GTS so that ECCN can be created and Product can be classified.

This numbering scheme contains the structure of the export list’s nomenclature. It is the basis for

The manual maintenance or upload of individual export list numbers. For every national export list, you
have to define a specific numbering scheme in Customizing for SAP GTS

SAP Global Trade Services–> General Settings–> Numbering Schemes –>Define Numbering Scheme of
Export Lists
Here we defined Number Scheme ECCN.

Now you assign the numbering scheme ECCN to a Export License legal regulation.

SAP Global Trade Services –> General Settings–> Numbering Schemes–>Assign Numbering
Scheme of Export List for License Maintenance.

This assignment allows maintain ECCN numbers in the licenses you use and in the customs product master.

Here you see Legal Regulation LEGREG is assigned with Number scheme ECCN.

There is another assignment

SAP Global Trade Services –>General Settings –>Numbering Schemes –>Assign Numbering
Scheme to Export List for Legal Control.

This assignment is done for License Determination purpose and only relevant when license determination
has the ECCN as one of the parameter.
 Page 2

CLASSFICATION OF MATERIAL:

First you have to create ECCN so that you can classify material for ECCN. You have to go to GTS Main
Menu Tcode /n/sapsll/menu_legal.

SAP Compliance Management –>Classification master Data–>Export Control Definition–>Maintain

Export control Classification numbers.

Here you first create Category and then you create respective ECCN

You have to classify the material for ECCN, for the purpose you have to go to GTS Main Menu Tcode
/n/sapsll/menu_legal

SAP Compliance Management–>Classification master Data–>Export View for Customs Product (If
doing for Export) –>Maintain Products

Here you can see the Number Scheme ECCN which is assigned to Export Legal Regulation LEGREG
You have to assign ECCN number , Grouping and Peculiarity code which will complete the classification
of material for ECCN , if you do not want a material to be controlled by license you have to check the Box
marked as No control in that case you need not assign the values of ECCN, Grouping and Peculiarity code

Grouping is the ECCN control group which is one of the determining factors for License determination
strategy. (Tcode /SAPSLL/CCGR to Define control group)

Peculiarity code is CCATS (Commodity Classification Automated Tracking System) is an alpha-

numeric code assigned by BIS (Bureau of Industry and Security) to products. Software companies
provide the CCATS number because some encryption exports require the exporter to make post-shipment
reporting to BIS on a bi-annual basis and the CCATS number is amongst one of the mandatory elements
required for reporting. (Tcode: /SAPSLL/CCSH to define Peculiarity code)

Page 3

ACTIVATE LEGAL REGULATION:

Legal Regulation of Legal control has to be activated for the country for which service is required in case
of Export Legal Regulation has to be activated for the Country from which the product will be shipped
and in case of Import Legal Regulation has to be activated for the country to which product will be
shipped .
SAP Compliance Management –>Legal Control Service–>

In addition to Activating the Legal Control legal regulation a determination procedure hast to be assigned
first which will determine the Legal Regulation of Legal control which is active ,this you will do under :

SAP Compliance Management –> Legal Control service –>Assign Determination Procedure for
Active Legal Regulations

Determination procedure control how Active legal regulation will be identified, e.g if Determination
procedure is at country level then active Export legal regulation for license will be identified based on
Departure country. The Determination procedure consists of different criteria viz Country level, Country
Group Level, Country/Country Group Level etc.This is defined under:

General Settings–>Legal Regulations–>Define Determination Procedure for Active Legal Regulation

Page 4

DEFINE LICENSE TYPE:

SAP GTS allows to determine required License for the material when ever there is cross border movement
for the same either export or import. So to able to create License in GTS first you have to define the
License type. Suppose you want to determine an Encryption License so first you have to define a License
type ENC in GTS and then you can create License for ENC License Type.

SAP Compliance Management –>Legal Control” Service –>Define License types

Attributes

You have to choose objects based on which License type will be determined and further you can define the
whether attributes re allowed or not for each object

 Foreign trade organization

 Legal unit
 Business partner
 Partner function
 Product number
  Control class (export control classification number)
 Document number from feeder system
 Country of departure/destination
 Peculiarity code
 Import code number

Also you have to define the Partner Group if you use Business Partner as one of the object with Partner Function
object. You have to define the various allowed status (viz Active, Created, Expired etc…) For each License
type

Define Determination Procedure to Automatically Determine License:

You define a determination procedure to enable the system to determine automatically the license types
that are appropriate to specific business transactions. The determination procedure you define here controls
how the system determines the license types that are relevant to a specific legal regulation.

The Determination Strategy consists of different criteria viz Country level, Country Group Level,
Country/Country Group Level etc.

Control Group means the ECCN Control group and Control means here ECCN.

Page 5

LICENSE DETERMINATION STRATEGY:

Once you define the Strategy you have to maintain Determination strategy to determine different License
Types.

A. SAP GTS MENU (Tcode: /n/SAPSLL/MENU_LEGAL)–>SAP Compliance Management –

>Legal Control –Export–>Determination Strategy for License Type–>Maintain
Determination Strategy.

Suppose you have chosen CD03- Country Group /Control Group the License Determination Strategy

You have to maintain entry here for all the license type you want to be determined, as shown above the
Determination for NLR where ECNGRP is ECCN group and CNTRYGRP is country group.

Basically :Legal Regulation + Country grp (Destination country) + ECCN group determines the
License type and this is called license determination strategy

CONTROL SETTINGS FOR LEGAL CONTROL SERVICES:

You can maintain different control setting for the Legal control Service which will broadly include control
for License Det. Strategy, Partner Group (which will be used to determine ship to Country and Ship from
country for Export and Import scenario respectively) and also you can define Allowed status for License
and Assign time zone to Deadline type
If you using ECCN group for License Determination you have to activate the “Control Grouping Activated
“

Check Box. If you intend to used Peculiarity code (customs codes assigned by the customs authorities to
provide them with information on the specific product you are importing or exporting, You can assign
these peculiarity codes to your product either directly in the master data maintenance for customs products
or indirectly in the import or export license maintenance transaction (as a license attribute) you have to
check the Peculiarity code Act. for goods check box.

Once configuration for Legal control has been done you have to create License for respective License type:

SAP GTS MENU (Tcode: /n/SAPSLL/MENU_LEGAL)–>SAP Compliance Management –>Legal

Control –Export–>Export License –>Maintain Export License.

Based on the License type object chosen in configuration you will have option to maintain values here, like
in shown pic you can maintain ECCN ,Country Dep/Dest ( Departure for Import and Destination for
Export )

Page 6
VISIO FLOW OF LICENSE DETERMINATION:

Page 7

HYPOTHETICAL SCENARIO:

Sales order created for Prodcut XYZExport shipped from Plant ABC in US (USA)to IN ( INDIA)

Steps that will follow the determination of License