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global trade management
License Determination


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License Determination and Management Issues and Challenges
Numerous regulations determine to what extent goods can be shipped between countries. With so many countries engaged in global trade, and with the proliferation of product codes, it can be difficult to know which goods require licenses.

Most products that can be used for military purposes require licenses, but what about those that have both military and civilian uses? Or those that seem like they wouldn't need a license at all, but actually do. Manually conducting a search for license requirements, especially those of foreign governments and agencies, can be time consuming and potentially fruitless without the right expertise.

Once licenses are obtained, they must be managed so the export does not exceed the parameters of the license. In large organizations, it can be difficult to keep the status of a license current if the license is not readily available.

Challenges include:
▪ Determining whether a Harmonized Schedule (HS) number has a corresponding export control number (ECN) in the US, or other license regulation for the desired country of import and export for each leg of the shipment
▪ Applying the license to transactions that subsequently decrement its value
▪ Tracking and monitoring the remaining value or expiration date of the license

License Determination

How Amber Road Can Help
One element of the extensive set of export compliance checks conducted for each transaction includes license determination. Using a dedicated license requirement engine, Amber Road's export solutions analyze a product, search the appropriate government regulations, and determine whether a license is needed. The engine uses a series of configurable rules for its evaluation of license requirements for single- or multi-leg shipments. The engine draws content from the Global Knowledge® system, which is updated daily by Amber Road global trade specialists.

Once a license is received from the issuing authority, it must be managed and tracked for usage and expiration. The license table allows licenses to be stored centrally and then be applied to orders. Centralized storage improves the ability to track and manage licenses across multiple transactions and to search licenses by a variety of criteria. When an order is completed, the license value is decremented by price or quantity. License certificates can be uploaded directly to the license record, and you can also store the contact information of individuals at the issuing agency.
Features Benefits

Global License Determination

 ▪ Review shipments to determine export license requirements based on the ECN or HS number, country of import, country of export, and other transactional data
▪ Receive alerts for any government agency red flags, Enhanced Proliferation Control Initiative (EPCI) warnings, and risks associated with embargo/anti-boycott concerns

License Management and Usage Tracking

 ▪ Enter license details at the product level so the license can be used in any subsequent transactions
▪ Assign status values to licenses, such as approved, pending, denied, canceled, or closed
▪ Set conditions as to whether certain countries or partners should be included or excluded on the license
▪ Decide whether particular licenses should be automatically decremented by quantity or sales/Customs price
▪ Place a reservation on a certain number of license usages at the time of order that will only be decremented upon delivery
▪ Search for individual licenses using a wide range of search parameters

 

License Management
License Determination and Management

Tyco Connectivity
"Amber Road's ability to quickly identify all regional and country-specific requirements was key to maintaining Fairchild's efficient operations."
Senior Manager, Global Logistics, Fairchild Semiconductor