Import/Export Control and Embargo Check

1. You create or change business document in the feeder system.

2. As a result, SAP GTS, edition for SAP HANA starts import/export control automatically.
SAP GTS, edition for SAP HANA checks if a license is required to export or import the
product, based on the settings configured in Customizing in SAP GTS, edition for SAP
HANA.

3. If a license is required, SAP GTS, edition for SAP HANA assigns the appropriate license
automatically to the business transaction.

Note:
If the applicable combination of export control classification number and country of destination is not permitted,
the business transaction is blocked automatically.
Import and export controls are based on a combination of the following parameters:

 Export control classification number

 Country of destination
  Country groups

 Single products

 Special customers

 Quantities

 Values

The license itself contains information about the allowed imports and exports, particularly quantities and/or
values. When you post the business document in the feeder system, SAP GTS, edition for SAP HANA
depreciates the values or quantities of the licenses.

4. In addition, SAP GTS, edition for SAP HANA performs an embargo check for the specific business
transaction. The check is based on the combination of the country of departure and the country of
destination (or groups of countries). If SAP GTS, edition for SAP HANA detects an embargo situation,
the document is blocked for further processing.

Monitoring
You can use the reporting functions in SAP GTS, edition for SAP HANA to monitor all transactions throughout
your process chain, for example, by selecting blocked documents or displaying assigned licenses. You have an
overview of the entire process and full control over the individual transactions, and can ensure absolute
transparency.

SAP GTS in the Corporate Network

SAP GTS is part of the Governance, Risk, Compliance (GRC), and
Cyber security solution. The overall objective of this solution is to
reduce risks that may result from violations of statutory provisions
and corporate rules in day-to-day business. In fact, there are quite a
few such risks in international trade, with some serious
consequences.

SAP GTS technically encapsulates international trade from the

logistics and accounting system processes. When you implement
SAP GTS, you store international trade in a specialized system. As
the product name suggests, this specialized system assumes the
role of a service provider. From this service provider’s perspective,
SAP ECC and SAP S/4HANA are feeder systems, that is, systems
in which various business processes are controlled. An SAP EWM
or an SAP TM system, or ERP systems from other software
providers can also assume the role of feeder systems. An SAP GTS
system can be the service provider of several feeder systems.

The feeder system is relieved of all international trade activities, but

it has to provide SAP GTS with all the master data and process
data required to carry out these activities. For example, for
sanctioned party list screening, SAP GTS relies on the addresses of
the business partners that it receives from the feeder system.

SAP GTS serves as a central gateway to the outside world in

international trade. All the data required for international trade
transactions are available in SAP GTS. Communication with
authorities and customs agents is thus the sole responsibility of
SAP GTS.
Product Structure
SAP GTS provides its feeder systems with a variety of functions for
international trade. These functions are grouped into application
areas from a content point of view. Before you implement SAP
GTS, you have to decide which of the application areas outlined in
this course are required in your company’s processes. SAP GTS is
designed like a toolbox: You only take those instruments that are
useful for your company. All other instruments remain in the
toolbox, but can be used later if required.

From a structural perspective, SAP GTS consists of five elements:

Products and Classification

The Products and Classification element provides functions for the

management of nomenclatures specific to international trade, for
example, customs tariffs and the assignment of their codes to
products.
Compliance Management

Compliance Management contains all the application areas relating

to import and export control. Compliance Management allows you
to monitor procedures that are subject to licensing requirements
and to comply with legal regulations that restrict or even prohibit
trade with individual states, political groups, and individuals.
Customs Management
Customs processing is supported by the application areas of
Customs Management. The emphasis is on the connection to
electronic customs procedures.
Preference Management

Preference Management comprises functions for determining the

origin of goods based on free trade agreements, but also for
managing the supplier’s declarations based on the Implementing
Regulation of the Union Customs Code (UCC).
Intrastate

This element enables the regular submission of declarations for

intra-European Union trade statistics (Intrastat).

Compliance Management consists of the following application

areas:

 Embargo check
 Sanctioned party list screening
 Legal control (product-related check)

All check functions are available in import and export processing.

You can activate each of the application areas independently of one
another.

Customs Management contains two application areas:

 Customs processing and pre-declaration

 Transit/presentation and excise duty

Both application areas allow the placement of goods under various

customs procedures when importing and exporting goods. In
addition, the second application area enables both the issuing and
receipt of electronic messages that are exchanged with customs
authorities during the movement of excise goods under duty
suspension within the EU. The movement of excise goods is not
covered in this course.
Commercial invoices
Bill of lading
Certificate origin