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License Determination and Management
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License Determination and Management
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License Determination and Management Issues and Challenges
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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.
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Challenges include:
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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 |
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Applying the license to transactions that
subsequently decrement its value |
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Tracking and monitoring the remaining
value or expiration date of the license |
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 Management
solution analyzes a product, searches the appropriate government regulations,
and determines 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® database, 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.
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Features |
Benefits |
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Global
License Determination |
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Review shipments to determine export
license requirements based on the ECN or HS number, country of import,
country of export, and other transactional data |
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Receive alerts for any government agency
red flags, Enhanced Proliferation Control Initiative (EPCI) warnings, and
risks associated with embargo/anti-boycott concerns |
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License
Management and Usage Tracking |
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Enter license details at the product level
so the license can be used in any subsequent transactions |
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Assign status values to licenses, such as
approved, pending, denied, canceled, or closed |
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Set conditions as to whether certain
countries or partners should be included or excluded on the license |
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Decide whether particular licenses should
be automatically decremented by quantity or sales/Customs price |
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Place a reservation on a certain number of
license usages at the time of order that will only be decremented upon
delivery |
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Search for individual licenses using a
wide range of search parameters |
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