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How SAP GTS handles the US International Emergency Economic Powers Act

T_Frenehard
Product and Topic Expert
Product and Topic Expert
‎2025 Mar 20 6:00 AM
1,166

T_Frenehard_0-1740985671729.jpeg

Unless you have been vacationing on Mars using one of SpaceX’s spaceships, you would have been aware of the recent development in US foreign trade policy. Especially the use of the US International Emergency Economic Powers Act by the new US administration.

 

What is the US International Emergency Economic Powers Act and recent application?

 

As a short reminder (courtesy of Wikipedia), the International Emergency Economic Powers Act (IEEPA), is a US legislation “authorizing the President to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States which has its source in whole or substantial part outside the United States.”

Making use of this regulatory provision, the US administration has decided a 25% additional tariff on imports from Mexico and Canada (with energy resources from Canada having a lower 10% tariff), as well as a 10% additional tariff on imports from China. And is looking at potentially extending to other countries as well.

For more details, you can refer to the official communication: Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China – The...

 

What are the consequences?

 

These new duties have to be considered for the classified products when being declared for Entry for Consumption, immediately. It can happen that now multiple additional duties represented by chapter 99 HS-Codes have to be considered.

If companies do not take immediate action their inbound supply-chain may suffer delays while importing.

 

How can SAP Global Trade Services safeguard your business?

 

Since the product world is constantly changing, the Harmonized System (HS) is also subject to regular changes. The World Customs Organization (WCO) revises the HS codes every five years, but nomenclatures that are based on the Harmonized System change at much shorter intervals.

Thankfully, SAP Global Trade Services is already equipped to help organizations react to these changes. And partner data providers also closely follow these changes and make nomenclature available to their customers rapidly so that they can remain compliant. As a result, once the required customization is performed in SAP Global Trade Services, updated custom duty rates files can be uploaded in the solution.

By accurately classifying products, companies can enable the customs authorities to control import and export of products through unique identification of those products with the matching customs tariff numbers. The customs authorities calculate the amount due to customs based on these numbers, as well as other relevant characteristics for customs control. And this applies of course to the new US requirements.

 

So the question now is, what do you need to do?

 

Well, the good news is that our expert partner Ropaar - SAP Service Company focused on Global Trade, Transportation, and Logistics, has already released a blog detailing the steps to perform: Managing Additional US HTS Codes and IEEPA Tariffs in SAP GTS

I would recommend referring to it as it contains all the relevant configuration guidance:

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Where to find more information?

 

Whether you are new to SAP Global Trade Services or would like a few pointers, I would suggest having a look at the following resources:

All credits for this blog go to Torsten Stolz – Product Owner SAP Global Trade Services, who kindly put this information together at short notice and our partner Ropaar who detailed technical customization steps and allowed me to share the link to their blog.

And if you are interested in learning more about SAP solutions for Governance, Risk, and Compliance, feel free to fill-in the demo request form!

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