Embargo Screening
Screening of transactions against embargo rules and trade restrictions using countries, products, parties and business context.
At a glance
| Area | Description |
|---|---|
| Purpose | Determines whether a transaction is prohibited, constrained or requires additional review because of embargoes or restrictions involving origin, destination, product, customer type, end-use or other regulatory parameters. |
| Typical inputs | Origin and destination countries, parties, product codes, customer type, end-use, business flags, embargo content and company rules. |
| Typical outputs | Embargo result, block/hold decision, exception worklist item, audit record and ERP/TMS release status. |
| Business value | Prevents prohibited transactions, enforces company policy consistently and reduces reliance on manual country/product checks during order processing. |
Core capabilities
- Embargo rule configuration by country, product and transaction context
- Country of origin and destination checks
- Product-specific embargo or restriction checks
- Customer type or end-use based restrictions
- Automatic transaction blocking when no license route is available
- Configurable company-specific embargo and restriction policies
- Audit log of embargo checks and user decisions
- Integration with regulatory watch and screening updates
Functional description
Legal Regulation Setup
Based on the country of export and the country of destination the solution selects the applicable legal regulations and their respective license requirements.
By referencing the up-to-date regulatory data provided by the solution this functionality ensures that all relevant licenses requirements are identified and helps to achieve regulatory compliance.
Typical parameters to describe license conditions or requirements for documentations
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Country of Origin and Destination
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Exporter of record
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Consignee
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End User (With requirement for signed End User Statements)
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Other Parties (With requirements for signed licence condition statement)
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ECN codes
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HS codes
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Other classifications (e.g. CITES Codes, UN HazMat Codes)
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Percentage of US Value Content
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Customs Regime
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Material Reference Numbers
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Customer Specific flags/transaction parameters
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License Date, Quantity or Value Limits
Licenses are setup with a combination of these parameters and allow to represent the license, document or embargo requirements.
Catch All Processing
In addition to standard regulations based on export classification the system also allows tracking of products subject to “catch all” clauses. For this purpose the parameter model of the embargo and license setup can be extended to cover specific cases which cannot be handled with the standard set of parameters, e.g. based on specific product attributes.
US de minimis
The Percentage of US Value content is essential to evaluate the need for US re-export licenses. This Value content can be taken from the ERP system or can be determined with the MyTower Origin Solution, similarly to the determination of non-preferential Origin. In this calculation mode the MyTower GTM Origin Module determines the value contribution for each country of supply, based on the bill of material.
The value content threshold for a given country of destination is based on the US EAR country matrix.
Embargo Screening
In its simplest setup the solution monitors the origin and destination country of a supply chain transactions and shows if the transaction is subject to an embargo, i.e. that it is not possible to transact with the given destination. At the next level the embargo may be only for certain products or certain customer types. In this case the system will result in a block of the transactions since it is not possible to obtain a license for the embargoed entity for the given transaction.