Many countries have imposed embargoes on a number of individual countries, political groups, and natural or legal persons. These embargoes are often based on UN Security Council resolutions. An embargo prohibits trade with the state, group, or person in question. In many cases, capital transactions with and providing certain services to the state, group, or person in question are also prohibited. The financial assets of the affected party can be frozen.
There are basically three kinds of embargoes:
A total embargo prohibits any kind of trade with the country in question. This type of embargo usually also includes services and financial transactions. In certain circumstances, this type of embargo does allow for the supply of humanitarian goods in individual cases and subject to authorization.
A partial embargo is intended to prohibit trade in specific goods only. These goods are explicitly listed in the corresponding legal regulation. Arms embargoes, on the other hand, apply only to armaments.
You always enter country-specific embargoes in SAP GTS as master data using the Manage Embargo Situations app. You can choose between three differentiation levels:
Blanket identification of a country as an embargoed country
Identification of a country as an embargoed country for a specific legal regulation
Identification of a country as an embargoed country in relation to another country for a specific legal regulation
If you decide on the first level, SAP GTS blocks every customs document with a check-relevant document partner in the embargo country without exception. This form of master data maintenance is therefore only applicable for embargoes with global reach.
However, even embargoes based on Security Council resolutions do not automatically apply in United Nations member states. Resolutions must first be transposed into national law or, in the case of the EU, supranational law. Therefore, it makes sense to differentiate according to legal basis in SAP GTS not only when defining legal regulations, but also when maintaining master data.
In most cases, the identification of a country as an embargoed country is sufficiently differentiated at the level of a specific legal regulation. If a country has unilaterally imposed an embargo on another country, the third option for master data maintenance is suitable.
You can find the Manage Embargo Situations in the SAP Fiori launchpad in the Compliance space on the Embargo page. In the app, you can choose between all three embargo maintenance variants.