Item Classification: Setup and Process

This section discusses the additional elements which need to be set up to support item classification and the different processes which are used when classifying items. To use the item classification functionality, use the data discussed in the basic setup section of this session plus an item. You can then run the following actions that can be triggered from the item actions menu:

• Classify Item
• Approve or Decline Product Classification – This action can only be triggered after an item has been classified.
• Update Product Classification

There is an additional item action which enables you to add classification data to your items using a template. To use these actions, first you need to setup a product classification template.

The basic setup elements for product classification have already been discussed so let’s look at items. Then, let’s review two item actions:

• Classify Item
• Approve or Decline Product Classification

These actions are generally used together. You cannot approve or decline a product classification until the product has been classified. You can classify a item through actions or you can use processes within Process Management.

After reviewing these actions together, let’s also discuss the Update Product Classification action.

Item Management Overview

The GTM Item manager can be used as the master store of all trade information pertaining to items. The GTM Item manager is the same as the OTM Item manager which means that transportation data also appears on the item. Each item in GTM can have one classification code per classification type, associated with it. There are exceptions to this, particularly around assigning Chapter 98 and Chapter 99 codes from the harmonized tariff where an additional classification code is allowed for HTS classifications from chapter 98-99.

Items are classified based on their item descriptions and other relevant information. Once you have classified an item, GTM enables you to approve or decline the classification manually through the user interface. This is to ensure the proper classification codes are assigned to an item.

Contact notification within GTM can be used to notify interested parties of different events. For example, you may want to notify someone, such as your boss, a customs broker or a freight forwarder, when an item has been classified or when the classification of an item has been approved or declined. Finally, invalid classifications can be automatically detected when new classification data becomes available.

Item Manager Setup – Header

Items are articles or units that you manufacture and sell such as chemicals, finished goods, raw materials and parts or they may be products that a supplier provides to you. You can create an inventory of items that you typically ship from one destination to another. Once items are defined, they can be used on trade transactions including sale orders, advanced shipment notices, fulfillment lines,  OTM Order Releases, or OTM Shipments to name a few. An item identifies the specific goods or materials that you are shipping.

You can create an item by adding each item individually, or you can import your entire item master from an external system via integration. Once the item is imported, you can make modifications to the data or add new items as necessary. You can also create a packaged item and specify details on how the item is packaged and handled so it can be stored and transported properly.

There are two saved queries you can use with the Item Finder. The saved queries will enable you to search for unclassified or misclassified items. The queries are named ITEMS REQUIRING CLASSIFICATION and ITEMS REQUIRING ECCN US. To use these queries, make sure the Use in Finder check box is marked on the saved queries.  You must set the glog.savedquery.show_all_savedqueries property to TRUE. Do not modify these queries; you may, however, copy them, rename them, and modify them to meet your needs.

You can navigate to GTM Items via two menu options:

• Classification > Items
• Master Data > Items

Items include all the information pertaining to an item such as:

• Product classification for the item
• Descriptions in different languages
• Suppliers
• Unit of measure conversion from the business UOM to the reporting UOM
• Remarks
• Reference numbers
• Text templates
• Transportation information

Item Manager Setup – Trade Partner

On the Trade Partner tab, you can specify information related to trading partner or supplier data including:

• Trading Partner grid - contains a list of trading partner or supplier items related to this item.
• Item Partner Site Associations grid - contains a list of party sites related to this item.

Item Manager Setup – Trade Details

On the Trade Details tab, you can specify information specific to trade including:

• Default Country of Origin
• Product Classification data such as:
  • Product Classification Type, Product Classification Code, Product Classification Notes, Customs Description, Product Classification Status, Expiration Date, and Approver Notes
• Item UOM Conversions including:
  • From UOM
  • To UOM
  • Conversion Rate
• Item Origins

Item Manager Process – Classify Item

The Classify Item action on the GTM Item enables you to select one item at a time and assign the appropriate classification data. From the Item results page, select the item which you want to classify and click Actions > Classify Item. GTM enables you to enter criteria such as product classification type and either product classification code or description. You can also enter a language and additional reference information including a service preference. For example:

• You want to assign a product classification type of HTS US to your item.
• You enter a description of ARMS AND AMMUNITION.
• GTM populated the ID field with SMALL AMMUNITION which is the ID of the item you are classifying.
• GTM also populated the source system with GTM.
• When you click Match, GTM displays the Classification page containing the grid view of product classification codes and descriptions of all HTS US codes with ARMS AND AMMUNITION in the description.
• Click the appropriate product classification code to select it.
• When you select the appropriate product classification code, GTM displays the Classification Notes page where you can enter additional notes to appear on your classification. You can also enter a Customs Description which you can then use on documentation and your filing to customs.
• Click Save Classification and GTM displays a confirmation page.

If you view the edit page for the item you selected, you can see the product classification line you just added in the Product Classification grid.

Item Manager Process – Approve or Decline Product Classification

The Approve or Decline Product Classification action on the GTM Item enables you to change the product classification status for each product classification type and product classification code combination. You may have one person perform the classification and another person to perform the approval or decline of the classification on an item to ensure it is correct.

From the Item results page, select the items on which you want to update the product classification status and click Actions > Approve or Decline Product Classification. For example, you can see the item SMALL AMMUNITION has two product classification lines.

• When you trigger the action, GTM prompts you to enter a Product Classification ID.
• Once you click OK, GTM displays a confirmation page.
• If you view the edit page for the item you just updated, you can see both product classification lines now have a product classification status of APPROVED and the approver note you entered.

Item Manager Process – Update Product Classification

The Update Product Classification action on the GTM Item enables you to change the classification code on an item. This is useful when a classification code has been removed from the tariff and you need to re-classify all items with a new code from the tariff. From the Item results page, select the item you want to re-classify and click Actions > Update Product Classification. For example: You’ve entered a Product Classification Type of HTS US. The Current Product Classification Code is 9305994000. You can also see the description for the current code. You’ve entered a New Product Classification Code of 9305995010. If you click the “I” icon to the right of this field, you can view the description for the new code. You can also add a classification note which appears on the product classification line in the item. Once you click Update Classification, GTM displays a confirmation page.

If you view the edit page for the item you selected, you can see the product classification code has been changed from the original code to the new code. Also, the product classification notes have been updated.

Product Classification Template Setup

Product classification templates are used when you are classifying multiple items that have the same classification details. Alternatively, you can assign multiple classification codes to an item based on a product classification template. For example, if you know the HTS MX and ECCN US based on a certain HTS US code; you can assign both of these codes to multiple items at one time. In the Item Manager, you can select multiple items and then use a product classification template across items to assign product classification types and product classification values.

Navigate to Classification > Product Classification Templates. On the Product Classification Template, you can specify:

• Description
• Product Classification Template Name
• Multiple Product Classification Types and an appropriate Product Classification Codes in the Product Classification Template Details section. You can specify only one classification code per classification type. There are exceptions to this, particularly around assigning Chapter 98 and Chapter 99 codes from the harmonized tariff.

For example, you have two rows in the product classification template details:

• A Product Classification Type of HTS US with a Product Classification Code of 9305994000.
• A second Product Classification Type of HTS MX with a Product Classification Code of 93059999.

Item Manager Process – Apply Product Classification Template

The Apply Product Classification Template action enables you to classify multiple items that have the same classification details at one time. From the Item results page, select the items you want to classify with the template and click Actions > Apply Product Classification Template. For example, you’ve entered a Product Classification Template of AMMUNITION which you just created. Then, click Apply Product Classification Template. GTM displays a confirmation page.

If you view the edit page for one of the items you selected, you can see product classification details have been added based on the template selected. In this example, your item has two product classification lines:

• First line with a product classification type of HTS US and a corresponding code of 9305994000.
• Second line with a product classification type of HTS MX and a corresponding code of 93059999.

Note: Both product classifications show a Product Classification Status of CREATED. These can be approved or declined using the Approve or Decline Product Classification action previously discussed.