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bookmap_Configuring_and_Using_Classifications_for__en-US_learning-sap-com_lsc-prod_batchid_452292.zip (BUILDER-INGRESS) - 2024-11-14T08:11:08.000Z

Using Control Groupings in Legal Control

<div id="content"><p tabindex="0">Control groupings are additional data in classification for legal control. They can be used in license type determination in addition to or as an alternative to the control classes of the products to be imported or exported. As the term suggests, control groupings are meant to group control classes on the basis of freely definable criteria. Their purpose is to simplify license type determination, that is, to reduce the number of determination strategies to be created using the <i>Manage Determination Strategies</i> app.</p><div class="kalturaVideoLessonWrapper"><div aria-label="Using Control Groupings" class="kalturaVideoLessonContainer" data-testid="video" id="1_3i2qcubj"></div></div><p tabindex="0">The use of control groupings in classification is optional.</p></div>

Purpose of Control Groupings

<div id="content"><p tabindex="0">Control groupings can be defined using the <i>Manage Control Group for Products</i> app. However, these groupings can only be assigned to the products on the <i>Legal Control</i> tab if their use is activated in the control settings of the relevant legal regulation or regulations by setting the <i>License Type Grp. Act.</i> indicator (<i>SAP Global Trade Services, edition for SAP HANA</i> → <i>Compliance Management</i> → <i>Legal Controls</i> → <i>Control Settings for Legal Control</i>).</p><p tabindex="0">After the activation of the use of control groupings at legal regulation level, the <i>Grouping</i> field on the <i>Legal Control</i> tab of the product master has to be filled in combination with the field for the control class to complete classification for legal control. The assignment can be made individually or during mass classification.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody">Peculiarity codes that could be assigned to products in the field below the <i>Grouping</i> field could play a role in license determination. The system might, for example, determine a license type for general licenses and identify the appropriate license using the peculiarity code of the product, amongst other criteria.</div></div></div>

Define and Assign Control Groupings

Configuring and Using Classifications for International Trade

<div>This video transcription explains the license requirements for dual-use items in the commerce control list, detailing control groupings, license exceptions, and license types based on reasons for control and destination country.<br><br># This description was auto-generated #</div>

Control Groupings

Two of the control groupings in the first example map Reasons for Control that decide on the license requirements for a particular dual-use item in the Commerce Control List. In the Commerce Control List, the license requirements are listed just below the Export Control Classification Number of the dual-use item The Reasons for Control applicable are indicated using abbreviations consisting of two letters. MT for example stands for Missile Technology and AT for Anti-Terrorism. The Commerce Control List also specifies the list-based license exceptions available for the export of the item. The license requirements for the export of a dual-use item depend on the Reasons for Control in combination with the country of destination. In this context, the Commerce Control List refers to the Country Chart in Supplement 1 to part 738 of the Export Administration Regulations. This chart specifies for each country of destination which of the Reasons for Control apply to the export of dual-use items. The Reason for Control "Missile Technology" is relevant for all countries except Canada. The majority of license exceptions are not available for items controlled for this reason. A control grouping representing this Reason for Control could therefore be used to determine a license type for licenses issued by the Bureau of Industry and Security, maybe in combination with other criteria, like the destination country or country group. In the example, some unspecified other Reasons for Control have been aggregated under the control grouping "Other Control Reasons". When exporting dual-use items controlled for these other reasons to selected countries, there is no license requirement at all. The system should therefore determine a license type for a license representing the "No License Required" status of the export. For exports to other countries, a license exception might be available. In these cases, the control grouping could be used to determine a corresponding license type, probably again in combination with the destination country or country group. And if a license is actually required, the system might determine the appropriate license type based on the control grouping, amongst others. For products not specified in the Commerce Control List but subject to the Export Administration Regulations, usually classified under the code EAR99, a third control grouping has been created. As the export of these products usually does not require a license, the system could determine the license type for the "No License Required" status. The second example refers to the EU Dual-Use Regulation. Annex I to this regulation contains the complete list of dual-use items. However, some of these dual-use items are considered particularly critical, like for for example, human and animal pathogens. These items are listed additionally in Section I of Annex II. Annex IV to the Dual-Use Regulation is included in the list in Section I of Annex II. This annex lists dual-use items that require a license even for intra-Union transfers. In the example, the three annexes have been mapped as control groupings for the purpose of license type determination. If dual-use items listed only in Annex I are to be exported, a Union general license might apply. These licenses have priority over all national licenses. If none of the eight Union general licenses applies, the system should determine a license type for national general licenses based on the control grouping representing Annex I. Only if there is no general license available for the export, a license type for individual licenses should be determined. Exports of dual-use items listed in Section I of Annex II always require an individual license. If the country of destination is another Member State and the product is classified under Annex IV, specific licence types for national general licences, if available in the supplying Member State, or individual licences should be determined.