Export compliance in Warehousing

A shipment line is subject to export compliance checks if:

  • The Export check box is selected in the Trade Management Parameters (tcgtc0100m000) session.
  • The ship-from and the ship-to warehouses are located in different countries.
  • The Subject to Trade Compliance check box is selected in the Items (tcibd0501m000) session.
  • The order is not a purchase return order.

  • The item is of a type other than:

    • Subcontracted Service
    • Equipment
    • List

If any of these conditions do not apply, trade compliance checks are not applicable and the compliance status is set to Not Applicable.

The Document Compliance Status field in the Shipments (whinh4130m000) and Shipment Lines (whinh4131m000) sessions show the progress and the results of the export compliance checks.

Export compliance checks are performed during the freeze step and the confirm step. Even if the compliance checks are validated successfully in the freeze step, the checks are performed again during the confirm step. Successfully validated shipments and shipment lines have compliance status Validated.

If the freeze step is not applicable to the shipment procedure, the export compliance checks are only performed during the confirm step.

Note: The freeze step is not an activity in a warehousing procedure, but you can enforce the freeze step for a warehousing order type by selecting the Freeze Mandatory in the Warehousing Order Types (whinh0110m000) session.

A shipment line can only be confirmed if the compliance checks are successful, or if unsuccessful validations are overruled by an authorized user.

However, you can confirm shipment lines with status Validating or Validation Error, and item quantity zero. This is required if the goods must be moved back to stock and be available for other demand before the compliance checks are completed. For this purpose, you must set the entire quantity to Not Shipped and confirm the shipment line.

When the validation status of all shipment lines of a shipment is set to Validated, the trade compliance status of the shipment is also set to Validated. A shipment can only be confirmed if all of the shipment lines are successfully validated for trade compliance. If you try to confirm a shipment with shipment lines not successfully validated, only the successfully validated shipment lines are confirmed and the shipment remains unconfirmed.

In the Document Compliance Check Results (tcgtc1510m000) session, you can view the compliance check information. You can access this session on the appropriate menu of the Shipments (whinh4130m000) and Shipment Lines (whinh4131m000) sessions.

Validation errors

If the Validation Error status is returned after freezing or confirming a shipment line, the export compliance errors must be corrected.

To correct validation errors for Frozen shipment lines

While correcting item compliance data such as licenses, the shipment line status remains Frozen and the trade compliance status remains Validation Error. After the corrections are completed, you must confirm the shipment line or use the Check Document Compliance option on the appropriate menu of the Shipment Lines (whinh4131m000) session. The compliance status is then changed to Validated.

To correct shipment line data such as item quantities or other stock point details, or compose handling units, you must reopen the shipment line. The shipment line status is reverted to Open and the validation status becomes To be Validated. After the corrections are completed, you must freeze the shipment line again. The compliance status is then changed to Validated and you can confirm the shipment line.

If the Validating status is displayed instead of the Validated status, the compliance checks are performed but require approval.

Approval

If the compliance checks for a shipment line are successful, but require approval, the validation status is set to Validating. After the compliance checks are approved in the Document Compliance Check Results (tcgtc1510m000) session, the validation status of the shipment line is set to Validated.

To correct validation errors after confirming a shipment line

While correcting item compliance data such as licenses, the shipment line status remains Open and the trade compliance status remains Validation Error. After the corrections are completed, you must confirm the shipment line. The compliance status is then changed to Validated.

If you correct shipment line data such as item quantities or other stock point details, or compose handling units, the shipment line status remains Open and the validation status becomes To be Validated. After the shipment-line corrections are completed, you must confirm the shipment line, which in turn launches the compliance checks. The compliance status is then set to Validated.

Note: The Validation Error status can be returned when confirming a shipment line even after the shipment line was successfully validated during freezing. This can occur, for example, if compliance requirements have changed since the successful validation upon the freeze step.

Override compliance failures

Failed compliance checks for a shipment line can be overruled by an authorized user in the Override Compliance Check Results Workbench (tcgtc1610m100) session. After completing the override, the Validation Error status of the shipment line changes to Validated.

Packing slip

If the global trade compliance functionality is set up, the following information is printed on the packing slip:

  • ITAR / Military Arms
  • EAR / Dual Use
  • License Type
  • License Number

This footer text is printed on the packing slip for shipments leaving the USA that meet specific criteria:

"These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to US. law is prohibited".

The criteria:

  • The item of at least one of the shipment lines is export controlled.
  • For the item of at least one of the shipment lines, the ITAR / Military Arms or the EAR / Dual Use field is specified in the Item Outbound Compliance Data (tcgtc0110m000) session.
  • The shipment is leaving the US.
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