Trade Compliance Management Generic Setup

Following are a few objects that you need to set up to use trade compliance management.

Compliance Rules

Laws and regulations encompass different types of compliance rules with many different parameters as drivers. Corporate export and import policies which go beyond government regulations may also define various compliance rules. Compliance rules model regulations set forth by various governments or regimes. They can also model scenarios that are not based on regulations.

A compliance rule is a set of parameters and conditions with one or more controls as a result. A compliance rule defines an ‘if…then’ statement that drives trade controls. The control category selected when creating a compliance rule will determine the data needed on the Control tab of the compliance rule, the logic that GTM uses when the rule is run, and the results. Here are a few sample scenarios that can be modeled in GTM and the control categories for each scenario:

• Screen your sales orders for export licensing requirements and license exceptions that may apply. For this scenario, you can use the control categories of LICENSE and LICENSE EXCEPTION.
• Screen your sales orders for corporate export rules including ‘do not ship’ or ‘stop ship’ rules. For this scenario, you can use the control categories of OTHER and OTHER EXCEPTION.
• Screen your purchase orders for required import documentation by jurisdiction. For this scenario, you can use the control category of DOCUMENT.
• Screen your shipments to determine which policies to apply and execute. Policies contain various services that can be run for a shipment including restricted party screening, assigning classification codes, allocating charges, and estimating duties and taxes to name a few. For this scenario, you can use the control category of DETERMINE POLICY.
• Screen your sales orders to determine if a sanction or embargo applies. For this scenario, you can use the control category of SANCTION.
• Screen your shipments to determine the customs duties and taxes so that GTM can calculate an estimated landed cost. For this scenario, you can use the control categories of VALUE QUALIFIER FORMULA and VALUE SET. For details see Duty and Tax Calculation on Trade Transaction or Declaration and Landed Cost Simulator.
• Screen your shipments to determine if a bill of material, known as a trade item structure in GTM, should be assigned and then assigns the correct trade item structure accordingly. For this scenario, you can use the control category of ITEM STRUCTURE.
• Screen shipments to determine if data should automatically be assigned based on specific criteria and assigns the data accordingly. For this scenario, you can use the control category of DATA ASSIGNMENT.
• Screen your declarations to determine if a declaration line must be reported to a customs authority or if there is an exception. For this scenario, you can use the control categories of REPORT and REPORT EXCEPTION.

Compliance Rule Sets

Compliance Rule Set enables you to group compliance rules based on similar characteristics for processing purposes. A compliance rule set is related to a regime. Regimes will have different rules against which you want to screen. You must specify a Regime ID on your Compliance Rule Set.

In addition, you can group compliance rules based on the type of compliance rule. By grouping your compliance rules, you can then screen against multiple compliance rules at one time.

You can specify one to many Compliance Rule IDs within a Compliance Rule Set. GTM will display the Regulation Reference ID and Control Category specified on the corresponding compliance rule.

Compliance Rule Set Groups

Compliance Rule Set Groups enable you to group multiple compliance rule sets for screening and dictate how those rules will be used during screening. You can sequence your compliance rule sets within a compliance rule set group to ensure they process in a specific order. You may have different compliance rules with different control categories such as sanction and license within a compliance rule set group.

When you perform a compliance rule screening, you can perform screening against different types of compliance rules at one time. When performing a screening, either through the user interface, integration, or automation agents, you must specify a Compliance Rule Set Group ID.

On your Compliance Rule Set Group, you must specify a Compliance Algorithm. GTM ships with two compliance algorithms: CUMULATIVE and EAR. How you set up your data and how the data is used depend on the compliance algorithm specified.