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SAP Global Trade Services (SAP GTS) automates global trade processes and enables you to manage large

numbers of business partners, and high volumes of documents while also helping you to comply with changing legal regulations. t facilitates gloabl trade by providing you with the tools you re!uire to respond to governments moderni"ing their systems and to customs authorities communicating electronically with businesses. SAP GTS also helps you to avoid costly delays in your import and e#port processes and allows you to respond !uic$ly to global business opportunities while mitigating financial ris$s.% SAP GTS $ey benefits &' () )nsure vigilant compliance with trade regulations *) +itigate ris$s of huge fines and penalties ,) Avoid costly shipment delays at borders and customs -) .uic$ implementation /) 0ower T maintenance costs 1) 2aster 3ommunication with customs 4) 0ot of return of investment SAP GTS consists of 2our Sub Solutions&'

SAP Compliance Management &'

contains all the functions relating to import and e#port control.

This sub solution allows you to monitor procedures that are sub5ect to licensing re!uirements and to comply with legal regulations that restrict or even prohibit trade with individual states, political groups, and individuals. The SAP 3ompliance +anagement sub solution consists of the services below& 6 )mbargo 3hec$ 6 Sanctioned Party 0ist Screening 6 Product'7elated 3hec$ (80egal 3ontrol9) All chec$ functions are available in import and e#port processing. :ou can activate the individual services independently of one another.

SAP Customer Management &' supports customs procedures. The focus is on the connection to electronic customs procedures and printing accompanying documents. There are also additional functions for goods classification. SAP 3ustoms +anagement comprises the two services below& 6 3ustoms Processing 6 Transit Procedure The 8customs processing9 service supports specific electronic customs declaration procedures and the printing of customs documents. The 8transit procedure9service allows you to use the ;ew 3omputeri"ed Transit System (;3TS) in <elgium, Germany, 27, =>, ;0, Austria, S? and Slovenia, by enabling you to electronically process this particular customs procedure. SAP Risk Management:has been added to SAP GTS ,.@. This is used for preference determination and the management of vendor declarations in relation to the issue of preference documents. t also supports the e#port of 3AP products that !ualify for a refund. The letter of credit administration has been added to SAP GTS 4.@. The SAP 7is$ +anagement sub solution offers the services below& 6 Preference Processing 6 0etter of 3redit Processing

6 7estitution The 8letter of credit processing9 service enables you to manage letters of credit in SAP GTS SAP Electronic Compliance Reporting :is a new addition to SAP GTS 4.(. This enables the regular issue of declarations for intra')uropean =nion trade statistics ( ntrastat). consists of a service to issue ntrastat declarations.

Functionalities of Foreign Trade with ECC and

lo!al Trade Ser"ices :-

AA copied from various sources. Sanctioned Part# $ist Screening comparision :-

$icense determination comparision :-

%mport &E'port (eclaration Comparision :-

The Above comparisions gives the advantage of GTS over )#isting 2T SB in )33. SAP Global Trade Services helps companies manage all comple#ities of international trade including full regulatory compliance, interactions with customs and management of ris$ while trading on a global basis.

The SAP Global Trade Services (SAP GTS) pac$aged composite application is built on the SAP ;et?eaver platform, an open and scalable technology platform. SAP GTS consists of separate modular components& SAP 3ompliance +anagement, SAP 3ustoms +anagement, and SAP 7is$ +anagement. These components give businesses a competitive advantage by helping them speed import and e#port processes, mitigate ris$s, and comply with international regulations.

SAP

$)*A$ TRA(E SER+%CES

GTS stands for Global Trade Services and is a standalone SAP #Apps that replaces the e#isting foreign trade functionality in 7C, SAP. To conduct business in other countries, <usiness must comply with local laws, meet documentation re!uirements and understand complicated tariffs and duties. 2ailure to do so can be costly so and GTS helps automate these processes to ensure compliances.

n todayDs global mar$ets, outbound shipments have to clear customs fast. That means ensuring that products are correctly classified and have the re!uired complete and accurate documentation. Plus thereDs the challenge of mandatory electronic filing via the Automated )#port System (A)S) directly to =.S. 3ustoms. Also, with the spread of global terrorism, e#port processes are sub5ect to closer scrutiny than ever before. 2or business with partners overseas, itDs essential to ensure that theyDre dealing with the right people, countries, and products. <usiness has to identify restrictions on specific items, countries of destination, and business partners, and there are host of regulations to comply with E and severe penalties for noncompliance. n addition, to survive in todayDs fiercely contested global mar$ets, <usiness cannot afford to pass up the opportunities offered by trade preference agreements such as the ;orth American 2ree Trade Agreement (;A2TA). To do so, <usiness needs to provide detailed certification of the origin of their goods to their overseas customers.

Basic Architecture

Reference : SAP Standard Image This is the basic GTS architecture how it tal$ to 2eeder System , all the master data li$e +aterial , customer vendor and all the transaction data li$e sales order delivery billing doc get pushed to GTS through 723 3all. And any message bac$ to 2eeder system flows through 723 call.

SAP GTS Capability Areas

C mpliance management ?e have three sub modules& !. Sancti ned Party "ist Screening: SP0 helps business to comply with gov laws that prohibits dealing with parties (individual and organi"ation) which are sanctioned by gov agencies. The detail we get from gov agencies and time to time there is addition and deletion to the same and same is uploaded to GTS

SP0 allows screening of all customer, vendor. ?hen ever order or delivery gets created in feeder system they goes to GTS and their partner are screened against the already uploaded BP0 denied party list we also call it BPl. f a partner is one from the BP0 the order get bloc$ed for further processing. This screening can be synchronous or asynchronous. Synchronous means in real time means as soon as the order is created it goes to GTS and get screened for any we can do the screening at later time. #. $mbarg chec%: This functionality helps in complying with the restriction to doing business with certain 3ountries. Gov agencies and united nation can prohibit doing business with certain countries. &. "icense determinati n: 2or many products valid license is re!uired for e#port and import process, so the determination of valid license either for e#port or mport is ta$en care by this module. n license determination for e#port departure company comes into picture and for import destination country come into pictureC This module allows maintaining the valid licenses and if while in the process of license determination the license in missing for a product it puts the sales order on the bloc$.

Cust m 'anagement 3ustom mgmt has got following sub'modules& !. Pr duct classificati n: This functionality facilitates the assignments of certain codes to products such As commodity codes& this helps in identifying the product by the custom authority on the declaration. Tariff codes for calculation duties. )#port control classification number for license determination These codes can be maintained manually or can be uploaded by third party vendor. #. Transit Pr cess This drives the transit business process, gives the provision of e communication with custom system such as ;3TS ()uropean =nion ;ew computeri"ed transit system.)Transit is a facility available to operators that allows the movement of goods across international borders under customs control while ensuring that any charges due on those goods in their country of destination are secured &. Cust m pr cessing: This module assists in ma$ing declaration of e#ports and imports to customs

An authority using electronic message and calculation of customs duties on imports one e#ample is S)B shipper e#port declaration which is re!uired& ?hen a shipment is over F*,/@@ when an e#port license is re!uired any shipment going to an embargoed country. -. Trade ser(ice pr cessing: Ta$es care of printing documents re!uired for custom clearance. li$e shipper letter of instruction , 3ommercial invoice ,?e can configure system for different message which can give us desired print , we can have smart form , PB2 .Gnce <illing document comes to GTS it creates custom shipment document in GTS where we can have our configured messages of different prints.

Ris% 'anagement: tDs the module enables the trade process that deal with the financial ris$ to the company !. Preference pr cessing Gives the fle#ibility to put duty as per different preference. As for )= and ;A2TA countries product if it contains higher local contents the duties on such product is less. This re!uires up to date maintenance of declaration from the suppliers to find out the local contents. System allows Supplier declaration on the system, Preference calculation rules from data providers ;otification to supplier to update their declaration Betail log to determine the origin of product. #. "etter f credit Provides support for commonly used types of international payment A letter of credit is a document typically issued by a ban$ or financial institution, which authori"es the recipient of the letter (the %customer% of the ban$) to draw amounts of money up to a specified total &. Restituti n )nables business to see$ refunds from gov authorities for e#ports that !ualifies for subsidies especially relevant for agricultural products from )= to non )= countries Allows to calculate refunds on e#port department, Allows to file refunds.

$lectr nic C mpliance Rep rting SAP )lectronic 3ompliance 7eporting (SAP )37) helps to record the necessary statistics data from a declaration period in ntrastat declarations for the following transactions& HShipments that your company receives from other member states of the )uropean =nion HShipments that your company sends to other member states in the )uropean =nion

Business Benefits

f SAP GTS

Reduce Ris%s f ) nc mpliance To keep Business exports in line with statutory regulations, SAP GRC Global Trade Services lets Business screen business partners against o icial sanctioned! party lists $asily Classify Pr ducts "ith SAP GRC Global Trade Services, Business can auto#ate and strea#line product classi ication 'eet C mple* + cumentati n Re,uirements "ith SAP GRC Global Trade Services, Business can identi y all docu#ents needed or a speci ic transaction, including those re$uired by the %AR and by govern#ent agencies such as the &'S' (epart#ent o State -andle $lectr nic C mmunicati n SAP GRC Global Trade Services delivers the A%S!certi ied unctionality needed by Business 'a%e the ' st f Internati nal Agreements "ith SAP GRC Global Trade Services, Business can e ectively handle trade!pre erence processing within the scope o ree trade agree#ents o the A#ericas, such as )A*TA +)orth A#erican *ree Trade Agree#ent , 'itigate .inancial Ris% SAP GRC Global Trade Services also provides support or co##only used types o international pay#ent +such as letters o credit,, helping #ake sure invoices are paid'

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