Regulations for Legal Control

Legal Regulations

In the SAP system, laws that govern export of goods from a country are called legal regulations.

Example Legal Regulations in the USA

  • The Export Administration Act (EAA)

  • The Export Administration Regulations (EAR)

Example Legal Regulations in Germany

  • Foreign Trade Law (AWG - Außenwirtschaftsgesetz)

  • Foreign Trade Regulation (AWV - Außenwirtschaftsverordnung)

  • Law for the Regulation of Military Arms (KWKG - Kriegswaffenkontrollgesetz)

Legal Regulations in Customizing

In Customizing for Foreign Trade , you can define which licenses are needed within each legal framework. For example, in the EAR, these licenses can include:

  • Exemption License

  • Validated License

  • Individual Validated License

and in the AWV:

  • General License (Allgemeine Genehmigung)

  • Collective Export License (Sammelausfuhrgenehmigung)

  • Single Export License (Einzelausfuhrgenehmigung)

Country Classification

Information relevant for legal control is stored for the countries to which goods are exported. This information includes:

  • Whether the country is a member of certain international organizations

  • Whether the country is presently under an embargo

    An embargo is a state-imposed, compulsory, and legally enforced boycott of trade with another state. It is often used as a punishment for human rights abuses or to further other foreign policy goals.

  • Allocation to certain country classification lists

For each legal regulation, the system uses the data at a later stage to determine whether a license is needed. If this is the case, it determines which type of license is needed.