Regulations for Legal Control (SAP Library - Legal Control (SD-FT-CON))

Regulations for Legal Control

Legal Regulations

In R/3, 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.