What is classification in SAP SLL - Global Trade Services?

SAP Term: classification

• Component: SLL

• Component Name: Global Trade Services

• Description: Describes the customs and foreign-trade law classification of goods in a nomenclature. All goods that are commercial goods in transnational trade are listed in the nomenclature. That is, a code number can be assigned to each good. In SAP , edition for SAP HANA, the following code numbers are used, for example: Compliance Management Control classes, for example, export control classification numbers Customs Management Tariff numbers Commodity codes

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• Key Concepts: 
  Classification is a process used in SAP Global Trade Services (GTS) to assign a product to a specific tariff code. This code is used to determine the applicable duties and taxes for the product when it is imported or exported. Classification also helps to ensure that the product is correctly identified and tracked throughout the supply chain.
  
  How to use it: 
  In SAP GTS, classification is done by assigning a Harmonized System (HS) code to each product. This code is used to identify the product and its associated duties and taxes. The HS code is based on the product’s characteristics, such as its size, weight, material composition, and other factors. The HS code can be assigned manually or automatically using an automated classification system.
  
  Tips & Tricks: 
  When assigning HS codes, it is important to ensure that the codes are accurate and up-to-date. This will help to ensure that the correct duties and taxes are applied when the product is imported or exported. It is also important to keep track of any changes in the HS codes over time, as these can affect the applicable duties and taxes.
  
  Related Information: 
  For more information on classification in SAP GTS, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_GTS/10_0/en-US.