please tell what is wrong with my code

[Shrutibhatnagar]

libname class1 '/folders/myfolders/mysas';
proc import datafile='/folders/myfolders/mysas/smb.csv'
dbms=csv out=smb replace;
libname class2 '/folders/myfolders/mysas';
proc import datafile='/folders/myfolders/mysas/churners_and_labels.xls'
dbms=xls out=churners replace;sheet=labels;
DATA labels;
SET class1.smb(keep=PRODUCT_ID Year AON);
LABEL PRODUCT_ID="Line number";
Year="Year";
AON="Age on network";

RUN;

gives error :- ERROR: File CLASS1.SMB.DATA does not exist.

[PGStats]

You have to say out=class1.smb in your proc import statement.

[Kurt_Bremser]

Please post the whole log of your code. Use the {i} button for posting logs (and the "little running man" for code).

[Shmuel]

When you write out=smb your output is work.smb, that is in work library.

To create the output in class1 library you should use @PGStats  answer:  out=class1.smb