SAP BusinessObjects Global Trade Services Handles Complex Compliance Checks

  • by Rajen Iyer, Cofounder and CTO, Krypt, Inc.
  • May 19, 2009
Discover how to perform an import and export check using SAP BusinessObjects Global Trade Services.
Key Concept
Export and import compliance checks involve performing trade compliance checks against outbound and inbound transactions (such as sales orders, delivery notes, stock transport orders, vendor purchase orders, or inbound deliveries). Both export and import checks entail performing three trade compliance checks: screening the Sanctioned Party List, checking for embargos, and determining the proper licenses. The key difference between the export and import checks is the country key used to perform them. Export checks use the departing country’s regulations, while import checks use the destination or receiving country’s regulations.

Every business transaction that crosses a border, whether outbound or inbound, needs trade compliance checks. Compliance checks involve checking all the business partners that are in the shipping document against the Sanctioned Party List to make sure that the country being shipped to is not under embargo, and whether the product being shipped needs a license or license exemption.

Say you have an outbound delivery. Before the delivery leaves, you have to check the business partners to whom the item has been sold or shipped to, the bill-to party, the freight forwarder, and the third-party shipper. You also have to perform a Sanctioned Party List screening against all business partners, check the countries associated with the ship-to party or the ultimate consignee where the product will land, perform an embargo check against the country where the product is being shipped to, and determine the appropriate licenses against the ultimate consignee. So how does SAP BusinessObjects Global Trade Services help?

SAP BusinessObjects Global Trade Services can automate all these checks to make the process faster and easier. You can configure the system to propose what licenses you’ll need and perform all your screening transactions and business partner checks against the Sanctioned Party List. This leaves you time to look only at the exceptions, such as potential matches in the Sanctioned Party List. Most importantly, your trade doesn’t become bottlenecked with manual compliance checks that can be unpredictable and error prone.

I will highlight the differences between Sales and Distribution: Foreign Trade (SD-FT) and SAP BusinessObjects Global Trade Services. I’ll show you how to perform export and import checks in each system.

Rajen Iyer

Rajen Iyer is the cofounder and CTO at Krypt, Inc. Rajen has written several in-depth, best practice articles, white papers, patents, and best-selling books on SAP Logistics and SAP Global Trade Services, including Effective SAP SD and Implementing SAP BusinessObjects Global Trade Services. He is also an invited speaker at industry conferences.

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