What is commodity code in SAP SD-FT - Foreign Trade?

SAP Term: commodity code

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A code from the Harmonized Commodity Description and Coding System that provides a standard way to identify materials for a country's export and import reporting systems. The first six digits of a material's code number are standard internationally. Each country adds digits to assign materials in its own classification system: In the USA and Japan, commodity codes contain 10 digits. In Europe, the codes contain 8 to 12 digits. Codes used for importing goods are longer than codes used for export.

Smart SAP Assistant

• Key Concepts: 
  Commodity codes are used in SAP Foreign Trade (SD-FT) to classify goods and services for international trade. They are used to identify the type of product, its origin, and its destination. The codes are based on the Harmonized System (HS) of the World Customs Organization (WCO). 
  
  How to use it: 
  In SAP, commodity codes are used to determine the applicable taxes and duties for a particular product. They are also used to determine the export control requirements for a product. To assign a commodity code to a product, go to the Sales and Distribution (SD) module and select the “Foreign Trade” tab. Then select “Commodity Code” from the drop-down menu. Enter the appropriate code for the product and save your changes. 
  
  Tips & Tricks: 
  When assigning a commodity code to a product, make sure that you enter the correct code for the product’s origin and destination. This will ensure that you are not charged incorrect taxes or duties. Additionally, make sure that you enter the correct export control requirements for the product. 
  
  Related Information: 
  For more information on commodity codes in SAP Foreign Trade, please refer to SAP Help documentation or contact your local SAP support team.