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What is SAP GTS?

The SAP purpose is stated as follows: "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. It facilitates gloabl trade by providing you with the tools you require to
respond to governments modernizing their systems and to customs authorities
communicating electronically with businesses.
SAP GTS also helps you to avoid costly delays in your import and export processes and
allows you to respond quickly to global business opportunities while mitigating financial
risks."

SAP GTS has the following high level features:

Compliance Management

 Sanctioned party list screening

 Export and Import legal control

Customs Management, Processing and Communications

 Transit procedures
 Trade document printing

Risk Management

 Restitution handling
 Preference processing

Best Practices for SAP GTS

SAP Global Trade Services helps companies manage all complexities of international
trade including full regulatory compliance, interactions with customs and management of
risk while trading on a global basis.

The SAP Global Trade Services (SAP GTS) packaged composite application is built on the
SAP NetWeaver platform, an open and scalable technology platform. SAP GTS consists of
separate modular components: SAP Compliance Management, SAP Customs
Management, and SAP Risk Management. These components give businesses a
competitive advantage by helping them speed import and export processes, mitigate risks,
and comply with international regulations.

 SAP Compliance Management -- Manages international trade compliance issues in

three primary areas: sanctioned party list screening, license management, and
embargo checking
  SAP Customs Management -- Facilitates interactions between your enterprise and
customs agencies, driving the efficient movement of goods and information across
international borders
 SAP Risk Management -- Provides mechanisms to ensure that all parties involved in
cross-border trade meet their contractual obligations and helps mitigate financial
risks while trading on a global basis
SAP Best Practices for High Tech offers a preconfigured scenario for each of these
three components.

Control & Click on the below listed Topics (web links)

 H94: SAP Global Trade Services (GTS) - Compliance Management

 H42: Configuration SAP GTS
 H96: SAP Global Trade Services (GTS) - Risk Management
 H95: SAP Global Trade Services (GTS) - Customs Management

SAP Global Trade Services (SAP GTS)

Purpose
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. It
facilitates gloabl trade by providing you with the tools you require to respond to governments modernizing their systems
and to customs authorities communicating electronically with businesses.
SAP GTS also helps you to avoid costly delays in your import and export processes and allows you to respond quickly to
global business opportunities while mitigating financial risks.

Integration
SAP GTS is based on SAP Web Application Server 6.20 and 6.40 technology and can be connected to both SAP and
non-SAP feeder systems.

Features
SAP GTSconsists of the following key capabilities:
SAP Compliance Management
 Sanctioned party list screening
 Export legal control
 Import legal control

SAP Customs Management

 Customs processing
 Transit procedures
 Trade document printing
 Customs communications

SAP Risk Management

 Restitution handling
 Preference processing
SAP Compliance Management
Purpose
SAP Compliance Management supports international trade compliance issues in three primary areas:
 Sanctioned party list (SPL) screening
 Export legal control (including embargo checking and license management)
 Import legal control (including embargo checking and license management)
By streamlining the extended supply chain, SAP Compliance Management automates the complicated regulatory
compliance process, which is a crucial factor for successful global trade activities. This minimizes the risk of penalties and
fines, maximizes your companies return on global sourcing and selling initiatives, and increases your overall
competitiveness by improving customer satisfaction.

Prerequisites
You have configured SAP Compliance Management according to the information given in the Business Scenario
Configuration Guide for SAP Compliance Management in SAP Service
Marketplace atwww.service.sap.com/instguides  SAP Components  SAP Global Trade Services  Using
SAP GTS 7.0.

Process Flow
Sanctioned Party List Screening

...

1. A business document (for example inquiry, quotation, order, or outbound delivery) is created in the feeder system.
2. This automatically triggers sanctioned party list (SPL) screening in the SAP Global Trade Services (SAP GTS)
system. Based on the rules that have been set during implementation, the address data in the business documents
are checked against the available sanctioned party lists in the SAP GTS system. These lists (in XML format) are
supplied by third party providers and can be uploaded to the SAP GTSsystem. You can also create your own lists.
3. Using the SAP GTS monitoring features, you can keep track of all checked addresses.
4. An employee with the appropriate authorizations can release blocked documents for further processing using the
monitoring capabilities.
 5. Periodic checks can be set up in order to check the current available master data. You can configure the sequence
that is used for checking the master data. It makes sense to set up the system so that all the master data is
checked automatically after every update of the sanctioned party lists.
6. All activities are logged in the area of sanctioned party list screening and can be archived for legal purposes with
the SPL audit trail function.
Export/Import Control and Embargo Checking

...

1. A business document is created or changed in the feeder system.

2. This automatically triggers export/import control the SAP GTS system. SAP GTS checks if a license is required to
export or import a product. These checks are performed based on the settings in the customizing for SAP GTS.
3. If a license is required, the system assigns the appropriate license to the business transaction.

A business transaction is automatically blocked if the applicable combination of export list number and
country of destination is not permitted.
Import and export control is based on a combination of the following parameters:
a. Export list number
b. Country of destination
c. Country groups
d. Single products
e. Special customers
 f. Quantities
g. Values
4. The license itself contains information about permitted exports or imports in terms of quantities and/or values.
When the business document is posted in the feeder system, SAP GTS depreciates the values or quantities of the
licenses.
5. In addition, SAP GTS performs an embargo check for the specific business transaction. The check is based on the
combination of the country of departure and the country of destination (or groups of countries). If the system detects
an embargo situation, the document is blocked from further processing.
6. Using SAP GTS reporting capabilities, you can keep track of all blocked documents and release options where
applicable.
Monitoring
With SAP Compliance Management, you can monitor all your business transactions across the entire process chain (for
example, by selecting blocked documents, displaying license assignments, and so on). This means that you obtain an
overview of the entire process, providing you with total control and ensuring absolute transparency.

SAP Global Trade Services (GTS) - Compliance Management

SAP Global Trade Services (SAP GTS) help companies manage all the complexities of global trade
including full regulatory compliance. It automates global trade processes and enables a company to
manage large numbers of business partners, and high volumes of documents. Within recent rule
changes, exporters, importers and manufacturer must shoulder increased legal responsibility for
knowing the identities of their end customer. Non-compliance can result in severe penalties.

The scenario configured for Best Practices for High Tech covers functionality of SAP GTS Compliance
Management: Sanctioned Party List Screening, Embargo Check and a License Determination Service in
Legal Control Export. The High Tech industry creates and sells technology often closely scrutinized by
regulators and government authorities such as: Powerful chips, high-speed computers,
communications equipment, security software, lasers, imaging equipment.

The scenario contains firstly the initial loading of master data from the SAP ERP feeder system to SAP
GTS as a prerequisite for the following three scenarios in SAP GTS Compliance Management.

 Sanctioned party list screening

 Embargo check
 License determination

Function List
 Creating sanctioned party list master data in SAP GTS
 Initial loading of master data to SAP GTS
 Creating sales orders in mySAP ERP
 Checking blocked business partner in SAP GTS
 Releasing blocked documents in SAP GTS
 Delivering sales order in mySAP ERP
 Billing delivery in mySAP ERP

Key Points
 Sales order processing
 Sanctioned party list screening
 Embargo check
  License determination

SAP Customs Management

Purpose
SAP Customs Management provides your enterprise with support for automating and standardizing import and export
processes. This enables you to speed up the import and export of goods and to cut the total costs involved in international
trade. Essential for this is, for example, electronic communication with the customs authorities in the individual countries
that use computerized procedures. SAP Customs Managementtherefore helps enterprises to comply with the strict legal
requirements that govern international trade and, in turn, to speed up the release of goods by the customs authorities.
SAP Customs Management supports cooperation with the customs authorities in the following primary areas:
 Transit/presentation
 Customs processing for imports and exports
 Classification
 Document printing and electronic communication

Prerequisites
In Customizing for SAP Customs Management and the plug-in in the feeder system, you have set up the processes
for SAP Customs Management.
For more information about the relevant Customizing settings, see the Business Scenario Configuration Guide for SAP
Customs Management on SAP Service Marketplace at service.sap.com/instguides SAP Components  SAP
Global Trade Services.

Process Flow
Transit/Presentation
In international trade, goods do not necessarily have to be processed at the border customs office, but instead can be
processed later on when they reach their destination within a country. The transit procedure enables the customs
authorities to identify and monitor the transit of the goods. SAP Customs Management allows you to participate in the
EU’s New Computerized Transit System (NCTS) for handling all incoming and outgoing transit procedures. In this case,
your transit must be based on the Community transit procedures T1, T2, and T2F and carried out using the EU’s single
administrative document (SAD). SAP Customs Management complies with the legal requirements for communicating with
the NCTS, thus connecting your enterprise to the customs authorities of the EU member states and the EFTA countries
(Norway, Switzerland, and Iceland).
As an authorized consignor, you can open the transit procedure by sending your transit declaration to the relevant
customs authorities with SAP Customs Management. The transit documents are sent back to you in the same way and
you can then pass them on to the transport company. At the same time, the office of exit informs the office of destination
about the expected arrival of goods.
As an authorized consignee, you can receive goods in the transit procedure and you can discharge the transit
procedure with SAP Customs Management. You notify the customs office of entry that the goods have arrived by
entering the movement reference number (MRN) in the arrival notification, and the customs office then grants you
permission to unload the goods. You can now unload the goods. When you are unloading the goods, check the goods
and their seals, and enter the results of this check in an unloading comment, which you send to the customs authorities. In
response, the customs authorities send you a safekeeping notification and notice of the holding period. Your goods have
now been presented.
During the holding period, details of which are contained in the safekeeping notification, you can opt to submit
a summarized declaration using SAP Customs Management. In this case also, you can establish direct electronic
communication with the customs authorities. When you open a customs procedure, you send a notification of completion
(sumD) to the customs authorities, which they then also send back to you. This closes the summarized declaration.

Customs Processing
SAP Customs Management enables you to handle customs processing for imports and exports electronically and in
accordance with the relevant legislation. The standardized means of communication provided bySAP Customs
Management make customs processing faster and simpler, provided that computerized customs procedures are
used. SAP Customs Management allows you to process your paper-based customs declarations electronically.
When you are exporting goods, you can submit your customs declaration to the customs authorities, and use SAP
Customs Management to print out the necessary customs documents. When you are importing goods, you can submit a
summarized declaration and initiate the release of the goods for free circulation. Once this procedure has been
completed, the imported goods are yours. You can choose between the following normal procedures and simplified
procedures:
 Single customs declaration
 Local clearance procedure (LCP)
 Advance local clearance procedure
 Simplified customs declaration
 Advance simplified customs declaration
 Supplementary customs declaration
 AWB (single customs declaration, air cargo)
 You can also use SAP Customs Management to map the following customs procedures with economic impact:
 Bonded warehousing procedure
 Declaration of goods for inward processing from the bonded warehouse
In addition to the various procedures, you can also use the customs value calculation function to calculate customs
duties at item level in advance.

Classification
Many number systems in foreign trade are based on customs nomenclatures. Every number system has a set structure
that can be stored as a numbering scheme in the system. This means that the export list number, the cross-country
number systems, the commodity code, the import code number, the Harmonized Tariff System number, and the CAP
products number are maintained.
For classification purposes, you have to assign numbers to imported and exported materials. To streamline this process
and provide you with decision-making support, the classification function in SAP Customs Management provides a
keyword search and a phonetic search for the appropriate classification.
You can use SAP Customs Management to upload customs tariff numbers from data providers, such as the European
Customs Tariff and the Integrated Tariff of the Community (TARIC).

Document Printing
You can use the document printing facility in SAP Customs Management to print foreign trade documents for import and
export processes and submit these to the customs authorities in accordance with the legal requirements of your country.
For this purpose, SAP Customs Management uses the worldwide leading Adobe technology for forms and printouts.
Thanks to full integration with Adobe's document service, you can use format templates, for example, and thereby
predefined customs authority document templates for your printouts. Adobe forms are easy to manage and can be used
for communication with your business partners, for example, by e-mail.
SAP Global Trade Services (GTS) - Customs Management
SAP Customs Management enables you to handle customs processing for imports and exports
electronically and in accordance with the relevant legislation. The standardized means of
communication provided by SAP Customs Management make customs processing faster and simpler,
provided that computerized customs procedures are used. SAP Customs Management allows you to
process your paper-based customs declarations electronically.

When you are exporting goods, you can submit your customs declaration to the customs authorities,
and use SAP Customs Management to print out the necessary customs documents. When you are
importing goods, you can submit a summarized declaration and initiate the release of the goods for
free circulation.

This scenario refers to the communication requirements of the German NCTS/ATLAS processes. There
are always country specific requirements in the Customs environment, so check your requirements
with your local customs authorities and reconfirm the availability of a certified country-specific SAP
solution with your SAP Representative.

Both the inbound and the outbound process are realized in this SAP Best Practices version. However
the integration with an external communication system (for example, Seeburger) are not covered in
this scenario.

The scenario contains firstly the initial loading of master data from the SAP ERP feeder system to SAP
GTS as a prerequisite for the following processes in GTS Customs Management.

Function List
 Initial loading of master data
 Classification of products
 Inbound process: Purchase order process in SAP ERP
 Outbound process: Sales order process in SAP ERP
 Printing of customs document

Key Points
 Classification
 Customs calculation
 Inbound/outbound process

SAP Risk Management - Preference Processing

Purpose
SAP Risk Management - Preference Processing helps exporters to fulfill all the legal requirements for customs tariff
preferences and to show that their goods are relevant for preference, thus enabling their customers to import these goods
either duty free or at a reduced rate of import duty. By providing evidence of eligibility for preferential treatment, exporters
gain significant competitive advantage. SAP Risk Management - Preference Processing offers the following options for
preference processing:
 Management of vendor-based vendor declarations and of vendor declarations for customer’s purposes
 Preference determination based on preference agreements and models for standardized products with static
BOMS or for order-related BOMs for configurable products
 Provision of a statement about the preference eligibility of goods based on preference determination
  Printing of preference documents

Prerequisites
You have configured SAP Risk Management - Preference Processing according to the information given in the Business
Scenario Configuration Guide for SAP Risk Management - Preference Processing on SAP Service
Marketplace at service.sap.com/instguides.

Process Flow

...

1. The feeder system transmits information on vendor-product relationships to SAP Risk Management - Preference
Processing. SAP GTS creates a worklist with this information so that it can be used for further processing.
2. If you need to consider goods receipts from vendors that do not originate from your preference zone when you
aggregate vendor declarations, you can indicate them as not relevant for request but relevant for aggregation.
3. From the worklist, the system selects the products that do not have vendor declarations. It also selects the
associated vendor master data.
4. The system creates requests for vendor declarations for the selected products based on the associated vendor
data. Using various media, such as Smart Forms, the system creates requests for vendor declarations, which you
can send to the vendors.
5. Once you receive vendor declarations from your vendors, you have to enter these in SAP GTS.
6. The system determines whether a valid vendor declaration exists for a product and aggregates valid, invalid, and
missing vendor declarations.
7. The system determines a threshold value by performing preference determination. During this process, it combines
the statements for every material based on the rules and procedures in the preference agreement, irrespective of
whether there are any valid or invalid vendor declarations. The system archives the results of the preference
determination, therefore enabling you to continue monitoring them with audit trails and the Monitoring function.
8. Whenever you create or change an order or a billing document in the feeder system, the system compares the
threshold value with the ex-works price of the order or billing document.
9. If the product is eligible for preferential treatment, the system sets the preference indicator.
10. You can issue the vendor declaration for customer’s purposes.

SAP Global Trade Services (GTS) - Risk Management

SAP Risk Management enables you to mitigate financial risks while trading
globally and can be fully integrated into your standard export processes: The
scenario configured for Best Practices for High Tech covers functionality of
Preference Processing.

SAP Risk Management - Preference Processing helps exporters to fulfill all the
legal requirements for customs tariff preferences and to show that their
goods are eligible for preferential treatment, thus enabling their customers to
import these goods either duty free or at a reduced rate of import duty. By
providing evidence of eligibility for preferential treatment, exporters
therefore gain significant competitive advantage. With SAP Risk Management
- Preference Processing preference agreements and rules are defined.
Preference models are created and vendor-based vendor declarations are
managed. The Preference determination is executed based on the preference
agreements and models. The scenarios covers Cross Plant preference
determination as well as the preference determination for configurable
products. The preference eligibility of goods it then shown in the sales
documents.

The Best Practices scenario contains firstly the initial loading of master data
from the SAP ERP feeder system to SAP GTS as a prerequisite for the scenario
in GTS Risk Management.

Function List
 Initial loading of master data to SAP GTS
 Purchase Order Processing in my SAP ERP
 Worklist for vendor declaration in SAP GTS
 Request vendor declaration in SAP GTS
 Maintenance vendor declaration in SAP GTS
 Cross Plant Preference determination in SAP GTS
 KMAT Preference determination in SAP GTS
 Results in sales documents in mySAP ERP

Key Points
  Definition of preference agreements and models
 Preference processing
 Preference determination
 Sales order processing

SAP Risk Management - Restitution

Purpose
SAP Risk Management – Restitution supports exporters in the restitution process. It helps ensure all the prerequisites for
applying and receiving export restitutions are fulfilled and minimizes the risk of penalization through loss of securities or
export licenses. The following requirements for restitutions are supported by SAP Risk Management – Restitution:
 License maintenance and assignment
 Security maintenance and assignment
 Manufacturer’s recipe maintenance
 Restitution rate maintenance

Implementation Considerations
You have configured SAP Risk Management – Restitution according to the information given in the Business Scenario
Configuration Guide: SAP Risk Management – Restitution in SAP Service Marketplace
underservice.sap.com/instguides.

Restitution Component View

1. A sales order and then a delivery document are created in a feeder system. The feeder system may be an SAP
system or a non-SAP system.
2. A customer invoice or a pro forma invoice is created in the feeder system based on the goods that are actually
delivered to the customer.
 3. The data from this invoice is transferred to SAP Risk Management - Restitution, where an export shipment
document is created.
4. If an advance refund payment (ARP) is required, a security must be assigned immediately to the export shipment
document rather than to the license.
5. The individual products listed in the export shipment document are all checked by the ‘Restitution’ service in SAP
Risk Management against the product master data to determine whether they are restitution-relevant products or
not. Restitution-relevant products include either of the following:
a. Basic products: sugar, cereals, eggs, rice, processed products of fruit and vegetables, milk and milk
products.
b. Non-annex-1 products (final products): products whose ingredients include one or more of the above basic
products.

It is essential that the manufacturer’s recipes for these final products are maintained in the master data.
6. If the product is restitution-relevant, then the ‘Restitution’ service runs a check to determine whether the product
requires an export license.
7. If there is no export license available, then an application for a license has to be made to the appropriate customs
authorities. Then the new license has to be maintained in the system and a security assigned to it also. This new
data from the license and the security is then assigned to the individual products in the export shipment document.
8. If the license search shows that an export license is available, then the license is assigned to the export shipment
document.
9. The ‘Restitution’ service calculates the restitution rates for the products and multiplies the restitution rates by the
quantities of the products to obtain a total expected restitution amount.
10. The ‘Restitution’ service depreciates the export license by value or quantity.
11. All the necessary forms are printed out and sent to the customs authorities and the export goods can be unloaded.
12. Monitoring functions in the ‘Restitution’ service help keep track of all the papers that are necessary for the
restitution process and help ensure they arrive at the appropriate customs offices on time. The restitution process is
closed once all the papers have arrived and the authorities have confirmed the restitution amount.
13. Finally, the security can be released.