Change Data Basis Functionality Simplifies Product Classification in SAP Global Trade Services 10.1

  • by Ravi Kalluri, SAP BusinessObjects Global Trade Services Consultant, Accenture Services Pvt. Ltd.
  • June 18, 2014
Learn how to set up a numbering scheme in SAP Global Trade Services 10.1 to facilitate the assignment of tariff and commodity codes for products sold by your organization. See how completing this process in version 10.1 is different from older versions of SAP Global Trade Services.
Learning Objectives

By reading this article, you will learn how to:

  • Apply the change data basis feature when you want to migrate to a new data provider for tariff or commodity codes maintenance
  • Detect inconsistencies with your old and new numbering scheme and rectify them for streamlined classification from your new data provider’s codes
  • Avoid heavy manual effort in migration from old tariff or commodity codes to new ones given by the new data provider
Key Concept

Product classification is the process of classifying your products to the tariff or commodity codes per your trade transactions. The functions for product classification in SAP Global Trade Services 10.1 enable you to handle your business processes and communicate with customs authorities.

The Harmonized Commodity Description and Coding System, which is also known as the Harmonized System (HS) of tariff nomenclature, is a mechanism by which international tariffs are standardized. As part of the HS, tariff codes are used for import shipments and commodity codes are used for export shipments. Importers and exporters over the world must classify all goods moved across international borders using the HS. Every item you sell must be assigned to a code according to the customs tariff schedule of the country from which you are selling.

The tariff and commodity codes that are assigned to the products are used by customs authorities across the world to identify your products and encode the rules and duties of the individual products. SAP Global Trade Services facilitates the product classification process as you can easily assign the tariff or commodity codes to your products.

To classify your products correctly, you have to set up a numbering scheme for tariff code numbers in SAP Global Trade Services 10.1. The steps for configuring this scheme in version 10.1 are different from previous versions of SAP Global Trade Services. I now walk you through these steps.

Step 1. Define Hierarchy Levels in the Numbering Scheme

If you obtain your numbers from a data provider, they are assigned to the hierarchy levels automatically. You create the numbering scheme in the customizing of SAP Global Trade Services. Follow menu path Global Trade Services > General Settings > Numbering Schemes > Define Numbering Scheme for Tariff Code Numbers. Click the execute icon located beside Define Numbering Scheme for Tariff Code Numbers.

In the screen that appears, enter the name of the numbering scheme that you want to create and enter its description (Figure 1). You also must provide the time zone for this numbering scheme. In the General Control Data section, select the Time-Dependent indicator, and in the From-Time Zone field, select the appropriate value for your time zone from the dropdown list of options (e.g., PST, CET, EST). In the Text Control Settings section, select all the indicators. 

Ravi Kalluri

Ravi Kalluri is an SAP BusinessObjects Global Trade Services consultant at Accenture Services Pvt Ltd. His focus is on the entire global trade area, including Compliance Management, Customs Management, Risk Management, and Electronic Compliance Reporting. He has an excellent understanding of SAP ERP logistics processes and their integration to global trade in a supply chain environment. His interests are networking, participating in conferences, and writing articles.

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