Export Compliance Check for Contract Deliverables

The Global Trade Compliance functionality can be used to check if specific items can be exported to a specific country or from / to a specific business partner. It is a process that verifies if specific export requirements are met. For this purpose, this process performs various checks on the contract deliverables. It is possible to execute internal and external checks. The authorized users can overwrite compliance check errors generated by LN, in which case the Export block is overruled.

Prerequisites

The global trade compliance functionality is enabled, only if:

The Trade Management check box is selected in the Concepts (Logistics) tab, in the Implemented Software Components (tccom0100s000) session.
The Export check box is selected in the Trade Management Parameters (tcgtc0100m000) session.

Compliance Check

A contract deliverable is subject to an export compliance check if:

The deliverable is of the type, Hardware and is processed in Warehousing.
The cost item deliverables are of the type, Non Hardware and are released to Warehousing.
The Subject to Trade Compliance check box is selected in the Items (tcibd0501m000) session.
The deliverables are shipped to another country, that is, the Ship-from address (based on the value specified in Warehousing) and the Ship-to Address specified in the Contract Deliverables (tppdm7100m100) session, are located in different countries.

Note:

The Subject to Trade Compliance indicator is added to the Contract Deliverables (tppdm7100m100) session. This check mark indicates if the Subject to Trade Compliance check box is selected in the Items (tcibd0501m000) session. If this indicator is not selected, by default, the Document Compliance Status is set to Not Applicable, and the Check Export Compliance option is disabled.
If the deliverable for which the trade compliance check is already executed is modified, the check is executed again. This is applicable even if the planned delivery date, or confirmed delivery date, the quantity, or sales amount data for the deliverable is modified.
During the internal check, LN verifies if the Outbound Trade Compliance and Restricted by Components check boxes are selected in the Items (tcibd0501m000) session. A license is required for certain countries based on the item and the export restrictions.

Following are the two scenarios for the export compliance check:

Scenario 1

In the Contract Deliverables (tppdm7100m100) session, create a deliverable.
Click Activate. When you activate the deliverable, the export compliance check is executed.
- If validated ( Document Compliance Status is set to Validated), the status of the deliverable is set to Active and the deliverable can be released to Warehousing using the Release option.
- If a validation error occurs ( Document Compliance Status is set to Validation Error), the deliverable status remains Free.
When the deliverable is validated and released, a warehouse order is created in the Warehousing Order (whinh2100m100) session. After the shipment line is confirmed, LN sets the contract deliverables Status to Delivered in the Contract Deliverables (tppdm7100m100) session.

Note: You can override the check using the Document Compliance Check Results (tcgtc1610m000) session. Override option is enabled for failure results.

Scenario 2

In the Contract Deliverables (tppdm7100m100) session, create a deliverable.
Click Check Export Compliance.
If validated, ( Document Compliance Status is set to Validated), click Activate.
Click Release.

Note: If you create a return deliverable in the Contract Deliverables Schedule (tppdm7100m200) session, LN sets the Document Compliance Status to Not Applicable and the Check Export Compliance option is disabled.