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IPR Globalization Period

former_member215181
Active Contributor
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In the GTS IPR Authorisation, 3 periods may be specified:

Processing Period

The maximum time allowed between import of the components and export of the compensating product.

Settlement Period

How often reports (and payment, if relevant) must be submitted to the Customs Authority.

Globalization Period

??? i'd be grateful for an explanation of this; particularly what effect this setting has in the system ???

Thanks & regards,

Dave

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hello Dave,

Globalization Period is a period within which you can import the goods without any processing. Lets say it is a buffer time within which you import the goods. It is count in months.

For instance Globalization period 3 would mean you have 3 months to complete the imports before you start processing.

Best regards,

Gabriel.

former_member215181
Active Contributor
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Thanks Gabriel,

So, if we have 3 months Globalization and 3 months Processing, there can be 6 months between Import and Re-Export? And must we wait 3 months before starting to process? Or is it that, we can start to process at any time (maximum 3 months after Import) but must complete within 3 months after that?

And what is the functionality in the system corresponding to the Globalization period? Does it "start the processing clock" after the end of Globalization, even if processing has not started? Or something else / additional?

Regards,

Dave

Former Member
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Hello Dave,

- So, if we have 3 months Globalization and 3 months Processing, there can be 6 months between Import and Re-Export? And must we wait 3 months before starting to process?

No, once you import the components into IPR, you can immediately start with the production. You dont have to wait for 3 month to start production. Globalizations means all components are considered as if imported at one date. After this date, the processing period starts.

- And what is the functionality in the system corresponding to the Globalization period? Does it "start the processing clock" after the end of Globalization, even if processing has not started? Or something else / additional?

After the processing period is over, you run the Settlement run - a separate action available in GTS area menu.

Here the closing portions are calculated for the BOM components (+ Scrap) and if not all the imported components were turned into final product a Duty payment to the authority is calculated. For this you also need to enter compensatory interest rates in the system.

There was a fine presentation about this in RTK 8.0 ramp up session some 2 years ago. Maybe you will be able to access it in Service Marketplace.

former_member215181
Active Contributor
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Hi Branko,

Many thanks for that further information. I have also been researching elsewhere, and now understand the concept. In Function Module /SAPSLL/SCP_SPEDT_CALCULATE (recently updated), I can see how the IPR expiry date determination takes account of the Globalization Period in the IPR Authorisation. Perhaps that's all it does? I'm not sure whether your reference to the Settlement Run suggests that there is additional use of the field there. Somehow I suspect not - I get the feeling that the only the Settlement Period is in considered there. Am I right?

Best regards,

Dave

Former Member
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Hello David,

You are right.

To make a simple illustration and not complicate this further:

Authorization setup :

Globalization period : 3

Processing period : 9.

This means that you start eg in January 1st, with importing the components. All the stuff you import into IPR until the end of March are regarded as imported at that date ( end of March). Then 9 months of Processing period runs during which you process the goods and export them. Then, after these 9 months, at 1st of January next year you do the settlement run and pay the duties on the unprocessed components you imported.

Best Regards,

Branislav Petricek

Edited by: Branko Petricek on Mar 24, 2011 3:44 PM

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