When a foreign-based company imports products or components from the United States, uses them

in its production, and then exports the produced materials to another country, the process is known
as U.S. Re-export and is subject to U.S. regulations. The industry, products and services used in this
scenario is mentioned below:

• Industry: Automotive

• Products and services: Commercial vehicles

In this scenario, consider a company located in Germany that builds fire fighting vehicles. To make
these fire fighting vehicles, they import the engines directly from the U.S. and export the finished
vehicles to Austria In order to be compliant with the U.S. export regulation, the company needs to
check which of its transactions are relevant for US re-export and to consider them accordingly.

In ERP system, call Transaction Code VA01, and enter details.

In GTS system, under SAP Compliance management click “Legal Control – Export”

Enter reference number from feeder system under Document Data in Feeder System, click execute
The order was not blocked in GTS because the hardware share of 24.04% for this component is
below the threshold of 25% as customized. “The de minimis threshold of country group
USREX_UNCR is 25%” as customized (customizing shown in next section).

Create a new or edit the existing sales order with a different sale price
When you click Save, the document gets blocked this time.
Check logs similarly to the previous example, this time the order is blocked because the re-export
hardware share is 31.25% (250,00 EUR) which is higher than the defined value i.e. 25%

SAP GTS automates and streamlines complex export processes to ensure compliance with relevant
regulations and mitigate the financial risks of global transactions. „
The De Minimis Calculation determines whether a product consists of high enough percentage of
U.S. originating items to be subject to U.S. export regulations. The calculation depends on whether
the destination is considered critical to U.S. security: Uncritical countries: Countries that the U.S.
believes are not a potential threat Critical countries: Countries that the U.S. believes pose a potential
threat „

For example, if an item is re-exported to an uncritical country, such as Austria, the U.S. originating
components may contribute up 25% of the item price before the item is subject to EAR. However, if
the same item is re-exported to a critical country, such as Iran, the U.S. originating components
contribution must be less than 10% of the item price or the item is subject to Export Administration
Regulations (EAR).

In GTS System: Transaction SPRO -> SAP Reference IMG

• Define Country Group

Path: SAP Global Trade Services -> General Settings -> Legal regulation -> Define country group

Click “New Entries” and add country groups

Assign Countries to country group

Path: SAP Global Trade Services -> General Settings -> Assign Countries to Country Group

Click “New Entry”, and assign the critical and non-critical countries to respective country groups.
Here we consider Germany as a non-critical country and Iran as a critical country.
Add details as shown below

Define a legal regulation of legal code ‘Foreign Trade Laws’ or ‘Prohibitions and Restrictions’ Path:
SAP Global Trade Services -> General Settings -> Legal Regulations-> Define Legal Regulation
Click “New Entry” and enter the following data • Legal Regulation • Description • Type of Legal Code
• Import/Export • Original Ctry of LR

Double click “Assign Country Group”, and select option from drop down.
Define Determination Procedure for Active Legal Regulations Path: SAP Global Trade Services ->
General Settings -> Legal Regulations -> Define Determination Procedure for Active Legal Regulations

Click “New Entry”, enter determination procedure and description

Now in Assignment of Determination Strategy, Choose from following determination strategy and
Partner group for determining active legal regulation. Enter partner group Exp.
Activate Legal Regulations at Country/Country Group Level Path: SAP Global Trade Services ->
General Settings -> Legal Regulations -> Activate Legal Regulations at Country/Country Group Level

Select your legal regulation and double click “country group”

Click “New Entry” and Add country groups

Control Settings for "Legal Control" Service Path: SAP Global Trade Services -> General Settings ->
SAP Compliance Management -> "Legal Control" Service -> Control Settings for "Legal Control"
Service
Make entries in Re-Exports checks. Select currency, exchange rate, and legal regulation
Path: Path: SAP Global Trade Services -> General Settings -> SAP Compliance Management -> "Legal
Control" Service -> Configure Country Group of Legal Regulation for Re-Export

Click “New Entry”

*In the check of re-export regulations, a percentage of the value share of the used input materials in
the exported goods (from the country that defined the regulation). If the value share of the product
exceeds this percentage, a license from the responsible authorities is required.

Select Exclusion number to enter excluded tariff numbers, example EAR99 and save your entry

In SAP GTS system, under SAP Compliance Management click “Classification/Master Data”
Maintain all the products relevant for your scenario. Enter “Logical System Group”, “Product
Number”, and click “Execute”
 A. What needs to be transferred from the Feeder System? In Transaction code
/SAPSLL/MENU_LEGALR3 under “Initial Transfer of master data tab” Transfer Customers
Transfer Material Masters Transfer BOMs

Re-Export Calculation section is new.

Here you can • Calculate Multiple Products: Determine Re-Export Shares for Multiple Products
You can display Bill of product log, display product, and display messages from this screen •
Similarly, calculate Individual Products • Calculate Changed Products • Display Calculation Log •
Display Re-Export Data for Product
 B. How to maintain a product in the SAP GTS system? Click maintain product, under “Export
View for Customs Products”

Enter product details