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License Determination - Purpose of assigning License Number to Customs Document

Feb 06 at 03:13 PM

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Former Member

Hi Team,

Could you please let me know the purpose of assigning License Number to Customs document.

As per GTS functionality License Number should be assigned to customs document. If no license assigned to customs document then subsequent functionalities cannot be executed in ECC (i.e Delivery, Invoice) .

Here the license number will not be sent to customs authorities. (because no communication mapping from customs document).

Then how customs authorities will verify the license number assigned to the documents.

Regards,

Chalapathi G.

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2 Answers

Dave Willis Feb 06 at 10:33 PM
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Interesting question.

Most licence types have a quantity or value limit. You don't generally get a licence that lasts forever, but instead is valid for individual shipments or shipments up to a certain total number of units or value. In those cases, if each licence isn't assigned to the transactions, there would be no way to monitor or restrict the usage. You have to comply with the rules, so have to know how each licence has been attributed.

Where goods are for export, most country authorities insist that the relevant licence number(s) appear on the commercial documentation and/or in the export declaration data. And, of course, the authorities are free to visit traders' premises whenever they want to verify correct behaviour and procedures.

Hope that helps.

Regards,
Dave

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Hi Dave,

Thank you for your reply.

We are implementing only Compliance Management for Export process which includes License Determination and no plans for Implementing Customs Mgmt.

As I understood License Mgmt,

1. License Numbers can be maintained in GTS system for the License types.

2. Value and Qty will be deducted in GTS system, (and if exceeds, Customs documents for SO and Delivery will be blocked).

3. License Number gets assigned to the Customs Documents created for SO and Delivery within GTS system.

Now, how customs authorities can understand which license number assigned to which shipment and how to display these license number in the Commercial Invoice. ( No standard logic exists).

In the GTS system, we are only assigning license number (Individual Valid License, VL etc) to the customs documents and not sharing, printing, communicating these details to anyone, including Customs Authorities.

By Implementing License Mgmt for Export process, Sales order and Delivery documents can comply to the License Qty and Value. And it is useful if License Mgmt implemented along with the Customs Mgmt.

awaiting for your reply..

Chalapathi G.

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Hi Gurram,

The Licence details must be submitted to Customs as part of the Export Declaration, so you need to pass them - perhaps, as you say, via the Commercial Invoice, to whoever is making the Declaration.

You are right in saying that there is no standard logic for displaying the details on the invoice, but to some extent that is because the documents may be created in many different ways (for example, in GTS, if neccessary). I remember that there are at least one or two "KBA" notes on how to transfer the data to the feeder system for that purpose.

And of course, the business will want to keep track of licence usage, so assignment to the Customs Document in GTS supports that monitoring purpose.

Hope that helps.

Regards,
Dave

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Hi Dave,

Thank you for your clarification.

Regards,

Chalapathi G.

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Sunil R May 15 at 09:49 AM
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Hi Chalapathi,

In most of the business cases, the license number will be transferred ECC and printed on commercial invoice and can be used for the same purpose in fact if valid license number is not assigned for the line item export declaration documents wont be approved.

Thanks & Regards,

Sunil.

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