License Screening Business Process

License Management is designed for customers who are required to comply with export and import laws. These regulations may include requirements related to licenses. The basic processes that you must follow to comply with these regulations are:

• Manage License Rules and License Exception Rules : Regulations define and specify the rules that companies are required to follow when trading internationally. License rules allow you to determine the reasons for controlling a transaction based on a set of conditions that are happening all together on the transaction. For example, the Export Administration Regulation (EAR) in the USA specifies that when shipping an electronic item classified as ECCN 3A001.b.2 to a country included in the NS1 country group, there is a NS (i.e. National Security) reason for controlling the transaction. Controls will determine the licensing requirements.

License exception rules help you to model an authorization that allows the export or re-export, under stated conditions, items subjected to regulations. For example, the Export Administration Regulation (EAR) in the USA specifies that an LVS (Limited Value Shipment) license exception can be applied when shipping electronic items, classified as ECCN 3A001.b2, to a country included in the NS1 country group, if the intended use is civil telecommunications applications and the transaction value is less or equal than USD 3000.

You may specify multiple conditions related to items, product classifications, involved parties, regions or countries, and facts on the transactions as parameters in the License and License Exception Rules. For more information about the data elements supported refer to compliance rule topic.

• Manage Licenses: Government agencies approve and assign licenses to companies. It is important to maintain and track key information on the licenses such as expiration dates, conditions or limitations on their use and quantity and/or value balances.
• Perform License and License Exception Rules Screening: Use control screening based  on your business rules to determine whether an import, export, or domestic transaction requires a license, permit, or authorization. If a license rule applies and there is no license exception that overrides the associated control, then the transaction is put on hold.
• Release Holds. You have two different ways to release a hold on a transaction:
  • Manually: If a due diligence or any other human intervention is required to be performed, then release the hold on the transaction line
  • Assigning a License: If a license is required, then follow the next steps:
    • Perform License Screening: Execute license screening to determine which licenses are eligible to be assigned to the transaction.
    • Assign Licenses: This process can be performed automatically based on the expiration date on a license or assignment can be done manually by selecting the license from an eligible set of options.
    • Monitor Licenses: Users can track expiration dates and monitor the use of the license.
    • Generate Reports: Users can verify the use of license over a time period and generate internal reports if required.
    • Audit License Use: As a result of querying historical usage, proactively apply for additional licenses when the current licenses are close to their expiration date or when the license quantities/values have been fully utilized.

Remember, once you perform license and license exception rule screening, if as a result there is one or more reasons of control and no exception to override these controls, then the transaction is put on hold. You have two ways to release this hold:

• Manually by entering information in the Authorization field against a control
• By assigning a license