SAP GRC Global Trade Services Eases Product Classification

  • by Rajen Iyer, Cofounder and CTO, Krypt, Inc.
  • February 15, 2009
Discover how you can use the classification tool available in SAP Governance, Risk, and Compliance Global Trade Services to maintain and assign the export/import classification, Commodity Code, and the Harmonized Tariff System.
Key Concept

An Export Control Classification Number (ECCN) is a specific five-character alpha-numeric number used to identify the level of control for an article being exported from any of the 40 participating countries in the Wassenaar Agreement. In the US, the ECCN is assigned by the Department of Commerce. Each export has an ECCN category and an ECCN group to accurately describe the product.

The Harmonized Tariff System is an internationally standardized system maintained by the World Customs Organization (WCO) for classifying traded products. Usually made of six to 10 digits, the Harmonized Tariff System classifies products for customs purposes.

All goods shipped out of the US must be labeled with their correct Export Control Classification Number (ECCN), license or license exemption, Schedule B, or Harmonized Tariff Number. Without any of these, you cannot complete the export declaration documentation required. As product classification is a daily and ongoing activity for trade, you need to be able to quickly search for the right number and classify or assign the correct classifications to a product.

Both SAP Sales and Distribution Foreign Trade (SD-FT) and SAP Global Risk, and Compliance (GRC) Global Trade Services allow you to maintain classification numbers, but very differently. In this article, I will show you the differences between Classification Data Maintenance in SAP SD-FT and SAP GRC Global Trade Services. You will see how to look up and store your necessary data for importing and exporting.

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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