Configuring License Types

The settings of a license type have an important influence on the determination of the licenses created within its framework. This paragraph looks at the information contained in import or export documents that the system can use to find a suitable license for the import or export of products subject to control.

By way of introduction, the video Sequence of Steps in Legal Control recaps the process of license type and license determination using the example of export control for dual-use items.

During license determination, the system compares data from the import or export document to the corresponding data in licenses of the eligible license type, if there are any. The focus is on the business partner, the product, and the country of departure or destination.

The objects to be checked for these key elements can be assembled individually in the settings of a license type.

Licenses might limit the value and/or the quantity of the controlled items to be imported or exported to a certain maximum. In such cases, a value or quantity update or both have to be activated in the settings of the license type or types for such licenses. In addition, the maximum value or maximum quantity, or both, have to be indicated in the licenses in SAP GTS.

Licenses that are not individually granted but published in the national legislation may also set a maximum value or quantity. This maximum applies to each export using one of these licenses. The CCL specifies maximum values for items classified under certain ECCNs for exports using the license exception Shipments of Limited Value (LVS).

In the value update, the system compares the value of the controlled items of an import or export document to the maximum value specified in the license determined in the previous step. If the value of the controlled items transferred from the feeder system exceeds this maximum value, the system does not assign the license and, as the case may be, continues license determination or blocks the line item or items relevant for control.

For license types that represent the license exception LVS, the German general export license no. 12 or comparable national licenses, SAP GTS provides the low-value check that enables the repeated use of the same license as long as the maximum is not exceeded in the individual export.

Providing dual-use items to military users is not generally prohibited. Companies in the EU and in the United States may, for example, supply dual-use items to the armies of each other and to the armies of other NATO Member States. However, these exports might require special licenses issued by the national authorities.

Sanctions frequently ban the export of dual-use items to the military and other military users in the affected countries.

If your company is a supplier of dual-use items to military users, you have to ensure that SAP GTS determines suitable license types and licenses for such exports. In case of export bans, in contrast, the system must not find a license that would allow the further processing of the planned sales.

The settings explained in the previous paragraphs are essential for license determination in export documents. In addition, license types can be used to default license codes in customs declarations linked to these export documents in the document flow.

The settings in the Default Document for Customs Management area are optional but useful if both legal control and customs processing are activated for exports in the SAP GTS system.

To enable the assignment of document categories, types, qualifiers, and issuing authorities to license types, the corresponding customs code list objects have to be assigned to the legal regulation or regulations for legal control (SAP Global Trade Services, edition for SAP HANA → Customs Management → Customs Code Lists → Assign Customs Code Lists Procedure to Legal Regulations).

If a license is assigned to the line item of a customs declaration on the Control tab, the system defaults the license codes on the Documents tab based on the settings in the license type.

As an alternative to defaulting license codes from the license type, users can enter these codes directly in the general data of a license using the Manage Licenses app. This procedure might be preferred for general export licenses and license exceptions.