US Re-Export
When a foreign-based company imports products or components from the United States, uses them in its production, and then exports the produced materials to another country, the process is known as U.S. Re-export and is subject to U.S. regulations.
SAP GTS automates and streamlines complex export processes to ensure compliance with relevant regulations and mitigate the financial risks of global transactions.
The De Minimis Calculation determines whether a product consists of high enough percentage of U.S. originating items to be subject to U.S. export regulations. The calculation depends on whether the destination is considered critical to U.S. security:
Uncritical countries: Countries that the U.S. believes are not a potential threat Critical countries: Countries that the U.S. believes pose a potential threat
For example, if an item is re-exported to an uncritical country, such as France, the U.S. originating components may contribute up 25% of the item price before the item is subject to EAR. However, if the same item is re-exported to a critical country, such as Iran, the U.S. originating components contribution must be less than 10% of the item price or the item is subject to Export Administration Regulations (EAR).
Regards
Debashish
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