Global businesses on either side of the US and China trade groups, over the last couple of years have witnessed plethora of sanctions, license & tariff wars between the two. Over these years the geo-political stand-offs has resulted in every country amending its list of products & countries with which it has engaged in trade through legal control for re-export.
Legal Control as counter measure
The prime function of the legal control for re-exports is to help determine whether a product exported exceeds a certain value share, which in turn requires an additional license when exported. For this purpose, re-export rules for legal control are issued by countries that are not directly involved in an export transaction, but whose rules two such businesses involved in re-export and import still have to follow, as defined by an additional legal regulation in the process.
Similarly, under the U.S. Government’s Department of Commerce, the Bureau of Industry & Security (BIS) determines entities that act contrary to the national security or foreign policy interests of the United States and accordingly help amend the Export Administration Regulations (EAR) by issuing rules on “Expansion of Export, Re-export, and Transfer (in-Country) Controls for Military End-Use or Military End-Users.
Global businesses will require to know & understand the potential impact of this new ruling for their business. To know the 6 major impact through introduction of additional controls, DOWNLOAD the white paper by Krypt titled – Impact of BIS Additional Controls for China, Russia, or Venezuela on Trade Procedures & SAP GTS System.
Additionally, you can also know more about the counter measure tactics of China in our previous blog titled – China Re-export and its implication post COVID-19 pandemic.
How can Krypt help?
Krypt as a preferred SAP integration & implementation partner can help integrate/implement the most comprehensive standalone global trade management solution offered by SAP. Global trade. Businesses can integrate it into their existing system or implement afresh altogether. They can manage efficiently all their trade needs in any geo-political environment while adhering to the legal requirements, updates, and any changes to those legal requirements. This comprehensive standalone software can be connected to any ERP system like SAP S/4HANA, SAP ECC and other ERP software from multitude of vendors.
- Monitor & manage tariffs changes
- General clauses for service contracts
- Detention & Demurrage, Storage & Monitoring (DDSM) conditions and surcharges
- Bill of Lading (B/L) conditions and surcharges
- Product country of origin, classification, customs duty calculation & online filing of export/import clearances
- SPL & Duty Drawbacks
- Integrate disparate processes across the supply chain and provide visibility for insightful decision making.
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