About Product Classification

Oracle Global Trade Management (GTM) Product Classification functionality enables companies to maintain compliance in all required countries. Every company has the responsibility to classify all goods and raw materials if they are the importer or exporter of record in any given country. This ensures that they comply with different export and import control regimes and also that the proper duty is being paid. They should classify items under multiple lists for trade in specific jurisdictions and follow any associated rules to which the commodities might be subject. There are a few reasons why companies may want to classify their items in GTM:

• Automated product classification process increases efficiency and reduces redundant maintenance
• Companies can reduce overhead by centrally managing product classification
• Companies can understand whether an item can take advantage of preferential rates and benefit from duty reduction

Examples of product classification lists include:

• ECCN – Export Control Classification Number
• HS – Harmonized System specified by the World Customs Organization
• HTS – Harmonized Tariff System specified by the United States
• SADC – Mexico Sistema Armonizado de Designacion y Codification de Mercancia
• ML – UK National Military List
• WA – Wassenaar Arrangement List of Dual-use Goods and Technologies
• Annex I – EU List of Dual-use Items and Technology
• TARIC – EU Council Regulation (EEC) classification database
• ASEAN – Association of Southeast Asian Nations classification database

GTM supports:

• The lookup of global classification data based on product description. This is a research tool to help you understand possible classification codes that can be used based on description or classification code from the tariff.
• The assignment of classification codes to an item in the item master.
• The lookup of classification codes on an item and adding applicable codes to a transaction line or declaration line.