Steering Export Control in the Automotive Industry with Microsoft Dynamics 365 Supply Chain Management

Posted on: September 5, 2023 | By: Fred Liu | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

The automotive industry is a collection of parts, assemblies, and finished products crossing the globe. As vehicles incorporate increasingly sophisticated technology and parts sourced worldwide, the complexity of complying with international export controls escalates. Microsoft Dynamics 365 Supply Chain Management can do more than streamline automotive production. Microsoft Dynamics 365 Supply Chain Management’s advanced export control functionality, the new advanced export control functionality, can help manage your export control policies using a native Microsoft Dataverse solution that directly interacts with your Supply Chain Management instance. Supply Chain Management then ensures compliance with international trade regulations by consulting your export-control policies in real-time.

The dataverse export control solution lets you monitor various rules, policies, and guidelines, even intricate ones, with formulas similar to Microsoft Excel. Its foundation on Dataverse ensures compatibility with other systems, granting them access to your export control guidelines due to the many connectors Dataverse offers.

Navigating the Lanes of Export Control:

For automotive manufacturers and suppliers, there are five crucial concepts within this solution:

1.Jurisdictions:

Think of jurisdictions as rule sets guiding international transactions. Key regulations like the US International Traffic in Arms Regulation (ITAR) or the EU Dual Use might be familiar to those sourcing parts globally.

The flexibility doesn’t end there. Automotive companies can also craft jurisdictions in line with their internal trade policies.

2.Codes and Categories:

Known as Export Control Classification Numbers (ECCNs) in trade parlance.

For instance, an ECCN like 7A994, as the US EAR outlines, may govern specific vehicular communication equipment and is categorized under the Anti-Terrorism (AT) control umbrella.

3.Restrictions:

Each jurisdiction sets out restrictions, specifying conditions under which exports should ideally be halted unless an exception can be invoked.

4.Exceptions:

These are the industry’s green lights when typical restrictions would red-flag an export. They come in the form of licenses, blanket exemptions, or even specific corporate trade policies.

Notably, every exception has its set of protocols — from user alerts to obligatory text or licenses on trade documents.

5.Licenses:

Central to global automotive trade, licenses grant permissions for trading items in precise contexts, typically granted by regulatory bodies to ensure legal compliance.

Next Steps:

If you want to learn more about keeping track of your trade policies in Microsoft Dynamics 365 Supply Chain Management, contact us here to learn how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.