Uploading Codes for Tariff and Non-Tariff Measures (EU)

The Integrated Tariff of the European Union (TARIC) refers to the EU's legislation relating to tariff rates as well as to import and export control as "measures". In the TARIC database provided by the European Commission, these measures are specified for each TARIC code together with additional information on their legal basis and their subject.

The TARIC measures can be divided into tariff and non-tariff measures. This division is not unique to the TARIC but applies to similar legislation of other countries.

Tariff measures affect the application of customs duties. In addition to the normal or standard duty, anti-dumping or countervailing duties might be levied to protect the domestic market. Customs duty might also be reduced to 0% based on a preferential agreement, or suspended temporarily because there is a shortage of certain products, for example.

In contrast, non-tariff measures have nothing to do with customs duties. The Swiss waste control procedures introduced in the Using Dependent Procedures and Government Agency Codes lesson are typical examples of non-tariff measures. These measures establish an import or export control regime for certain categories of products.

For the most part, the import or export of such products is restricted. The importer or exporter must provide certificates, licenses, permits, or any other document issued by various PGAs prior to the import or export. In some cases, the import or export control merely consists of a notification requirement. However, an import or export might also be prohibited, for example due to sanctions.

Customs tariffs and lists of goods for statistical purposes like, for example, the Schedule B or the Combined Nomenclature (CN) are usually uploaded to SAP GTS from XML-files bought from data providers. Some of these data providers additionally offer the codes representing tariff and non-tariff measures as an enhancement of these nomenclatures.

In the EU, a major part of these codes are intended for use in the customs declaration. If, for example, a product is to be imported from or exported to an embargoed country, the importer or exporter has to confirm that the transaction is not affected by the embargo by using specific codes.

Another example of the application of codes for non-tariff measures in the customs declaration is the statement that a particular product to be exported from the EU is not a dual-use item (code Y901). This statement is required if the CN code suggests that the product is a dual-use item. However, if the product is indeed a dual-use item, an export license (or authorization in the wording of the Dual-Use Regulation) is required. The existence of this license has to be confirmed in the customs declaration by entering one of the codes X060 to X071, depending on the license type.

In SAP GTS, an entire set of tariff and non-tariff measures is represented as a measure scheme in combination with a measure scheme content (SAP Global Trade Services, edition for SAP HANA → General Settings → Numbering Schemes → Settings for Measures in Document Determination → Define Measure Scheme and → Define Measure Scheme Content).

Delivery Customizing provides the codes for TARIC measures as well as for national measures of individual Member States in the customs code list Type of Previous Document/Document/Certificate. As the authorities frequently modify these codes due to legal changes, this customs code list must regularly be updated in SAP GTS (SAP Global Trade Services, edition for SAP HANA → Customs Management → Customs Code Lists → Maintain Customs Code Lists for Legal Regulation).

The content of a measure scheme, that is, the assignment of measure codes to commodity codes or customs tariff numbers in combination with countries and country groups, must be uploaded from XML-files. You can use the Upload Measures app or transaction Upload European and National Measures for Tariff Numbers (transaction code /SAPSLL/LLNS_MEA_UPL).

Among other things, the upload creates country groups and measure types. A measure type identifies a particular tariff or non-tariff measure within a measure scheme. The "Export authorization Dual use" measure, for example, is identified by measure type 478 (SAP Global Trade Services, edition for SAP HANA → General Settings → Numbering Schemes → Settings for Measures in Document Determination → Manage Properties for Measure Type).

After the upload of measures, the measure type and the assigned codes can be displayed from the Classification tab of the product master data.

To enable the display of measure types and codes in the product master data, you have to set the Classification Display indicator for all relevant measure types in the Manage Properties for Measure Types app.

Additionally, the uploaded measures fill a worklist for the automatic creation of determination strategies for defaulting codes in the customs declaration on item level ("document determination").

You can display the worklist using the transaction Display Worklist for Generating Determination Strategy (transaction code SAPSLL/CD_WL_DISP). Determination strategies can be created using the transaction Generate Determination Strategies for Determining Documents (transaction code /SAPSLL/CD_GENERATE).