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SAP Governance, Risk, and Compliance Solutions | SAP Global Trade Services
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Table of Contents
3 Quick Facts
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Quick Facts
Summary Solution
With the SAP® Global Trade Services (SAP GTS®) •• Manage export trade regulations
application, you can centrally manage global •• Manage import and export compliance,
trade and have a single repository for all classification, trade finance, and
compliance master data and content. Deploy documentation
it stand-alone or natively within your classic on- •• Enable customs services with direct filing
premise or cloud landscape of solutions such as as well as broker communication
the SAP ERP application or SAP S/4HANA®. And •• Reduce duties and fees
if your goal is to run worldwide compliance from •• Manage vendor and customer declarations
a single platform, integrate SAP GTS across your •• Centralize master, classification, and
enterprise – from sales to procurement, logistics compliance data
to finance, and HR to legal. •• Automate regional and industry compliance
Objectives Benefits
•• Improve trade management and reduce •• Automate time-consuming, manual compliance
compliance risks by automating processes tasks and boost productivity
and building cohesive, scalable systems •• Accelerate supply chains with real-time
•• Reduce supply chain disruption through compliance checks
real-time compliance and data checks •• Validate orders consistently against regulations
•• Eliminate duplicate efforts with centralized to minimize fines and penalties
management of master data and content •• Manage content changes with ease, and publish
•• Maintain evolving trade sanctions and them enterprise-wide
regulations •• Reduce cost and effort of global trade
•• Reduce IT complexity with standardized compliance, duties, and taxes
software interfaces and efficient processes
Learn more
Contact your SAP representative, or visit
us online.
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Global trade groups within organizations today are not just a cost of doing business
or the team that gets called out when something goes wrong. They collaborate closely
across key business functions, providing critical input to ensure successful
achievement of operational and financial performance objectives.
QUANTIFYING THE COSTS OF OUTDATED can’t address the complexities of global trade
GLOBAL TRADE PROCESSES today. For example, fragmented legacy systems
Organizations across all industries are reexamin- break the natural rhythm of information flow,
ing their global footprint in light of geopolitical with cross-border order and shipment data pass-
upheaval occurring around the world, as well ing through separate systems for transactions,
as changes to market opportunities, tariffs, and screening, and approval. This complicated
free trade agreements. But globalization also information flow results in delays of export orders
increases the complexity of cross-border trade, that must be screened, inbound shipments that
bringing both opportunities and risks. The are unable to rapidly clear customs, and a lack
SAP® Global Trade Services (SAP GTS®) applica- of reports that decision-makers need to monitor
tion gives you confidence that your business free trade compliance. In addition to causing
processes are compliant with complex global delays, having separate systems for managing
trade regulations while enabling a high-velocity global trade prevents timely visibility into orders
supply chain. and shipments – including those that may be
violating regulations.
MOVING BEYOND MANUAL AND LEGACY
GLOBAL TRADE SYSTEMS As companies add new products, move into new
As companies increase participation in global markets, or increase trade volume, they are find-
trade, their need for effective global trade man- ing that their manual and legacy systems can’t
agement increases as well. Managing global keep up, compounding these challenges. Customer
trade in accordance with the ever-evolving laby- orders don’t ship on time, businesses can’t take
rinth of regulatory requirements, geopolitical advantage of duty-relief and duty-suspension
risks, changing market opportunities, tariffs, programs, and compliance risk increases. With
and free trade agreements can make or break SAP GTS, you can address these challenges by
the success of your globalization strategy. bringing real-time global trade management
capabilities to your business processes.
The challenge is that global trade is typically
managed using antiquated manual processes
and legacy global trade systems that simply
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With SAP GTS, you get a single, comprehensive, •• Key country localizations (including processing
and secure solution for centrally managing trade trade for China)
activity worldwide. The application provides: •• Standardized communication with brokers
•• Centralized storage of all trade-related legal, managing key trade processes
compliance, and regulatory data
•• Screening of business partners across the At the same time, SAP GTS helps prepare
business regardless of process your organization for changes in trade from
•• Integration with core business systems for “single-window” concepts to machine learning
real-time processing for enhanced activities and for leveraging
•• Support for full regulatory export compliance, blockchain efficiencies. SAP GTS helps ensure
including license determination that your trade organization receives the benefits
•• Support for complete regulatory import of process and technology innovation.
compliance, including calculating and making
duty payments, expediting customs clearance, Let’s take a closer look at how SAP GTS can help
and performing reconciliations you execute your globalization strategy efficiently,
•• Process automation and integration for profitably, and securely. As shown in Figure 1,
management of foreign trade zones, bonded SAP provides a comprehensive solution for global
warehouse management, and inward and trade services that supports export and import
outward processing management, trade preference management,
•• Reduced costs by taking advantage of free and special procedures for customs and regions.
trade agreements This application enables native integration into
•• Built-in compliance with a number of regional SAP systems and connectivity to third-party
processes, such as the European Excise systems alike. You also have the option to run
Movement and Control System (EMCS), SAP GTS on the SAP HANA® database.
Intrastat, and restitution
Inbound trade
Import management Import classification Import compliance Inbound customs services
financial services
Special customs
Customs warehouse Inward processing Outward processing Foreign trade zone Processing trade
procedures
Trade preference
Vendor declaration handling Preference determination Customer declaration handling
management
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REAL-TIME COMPLIANCE CHECKS AND Real-time integration between SAP GTS and
RELEASES SAP S/4HANA and SAP ERP enables real-time
Without direct and real-time integration between compliance checks, controls, hard stops, and
your trade management and enterprise business block resolution worklists and workflows. This
systems, you have to depend on manual interven- functionality helps you keep compliance-related
tions to stop shipments that need further review. data – and your products – moving as quickly as
It takes only a small slip to create a domino effect possible. Figure 2 highlights the various points
of issues, such as errors in customs declarations, of integration between trade management
additional shipping fees, and other costs resulting processes within SAP GTS and order and
from supply chain delays. shipment processes.
Figure 2: Integration Between SAP® Global Trade Services and SAP Business Suite
Export process
Import process
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ACCELERATED APPLICATION-RELATED DATA trade best practices and often requires collabora-
ANALYSIS USING SAP HANA tion with a product engineer and compliance
SAP HANA – a high-speed, in-memory database specialist. You may need to maintain many
– can serve as the primary database for SAP GTS. classifications for each product to accommodate
SAP HANA includes tools for data modeling, data various authorities; for example, in the European
and lifecycle management, security, operations, Union, products require a TARIC code, which is
reporting, and more. Going forward, we plan to an EU import classification scheme. SAP GTS
optimize SAP GTS to take advantage of the high- supports multiple classifications including HS,
performance functionality delivered by SAP HANA. HTS, TARIC, PGAs, and ECCNs and allows you to:
•• Establish correct product classification,
SAP HANA also supports the analysis of enabling you to identify and pay the correct
sanctioned-party lists. It accelerates analytics amount of duties and tariffs
performance and efficiency by providing •• Determine product qualification for preferential
real-time access to massive amounts of screened duty rates
sanctioned-party-list data, blocked partners, and •• Know if import or export permits or licenses
documents. Using this optional function, you can are required
accelerate access to screened data, including •• Collect trade statistics
incomplete documents, audit trails, blocked
business partners, and blocked documents, SAP GTS supports multiple numbering schemes
to quickly diagnose and address issues. for the same product based on legal regulations
of the various countries and customs regimes.
PRODUCT CLASSIFICATION It also supports mass product classification or
To uniquely identify goods when communicating mass reclassification, which increases user
with regulatory authorities, you need to classify productivity while keeping product classifications
goods according to official classifications. Accurate up to date.
product classification is the foundation of global
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© 2018
20xx SAP SE or an SAP affiliate company. All rights reserved.
Run Worldwide with SAP Global Trade Services
SAP GTS supports outward processing relief SAP GTS supports more than 25 certified
(OPR) to provide relief from custom duty, allowing interfaces for customs and other government
you to track the export of materials for processing agencies. This not only reduces the cost of
outside their customs territory. SAP GTS then compliance but also enables organizations to
links to the reimport record of the semifinished rapidly enter into new markets.
or finished goods so that importers pay duties
only on the value-added foreign content. OPR
functionality is integrated into the sales process,
including repurchase, subcontracting, and stock
transfer scenarios.
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SAP GTS allows your company’s suppliers to use REGIONAL VALUE CONTENT CALCULATION
Web-based supplier self-services so they can Running preferred trade agreements without
quickly and more easily maintain declarations system automation is manually intensive and
online. Their inputs are then aggregated and challenging. Hence, it keeps many companies
maintained in the application. SAP GTS also from realizing the real cash savings offered by
integrates with the production and sales processes trade agreements. SAP GTS keeps track of all
supported by SAP S/4HANA and SAP ERP so it preference calculations, transactions, and goods
automatically receives updated copies of the movements – all captured in an electronic audit
BOMs. It evaluates product classification and trail. In addition, it supports both net value and
preference status for BOMs, using applicable transaction value valuation methods. Preference
rules of origin to determine which goods qualify management functions enable the collection of
for preferential duty treatment. Real-time inte- vendor declarations, preference processing of
gration into sales and distribution functionality BOMs (both fixed and order related), preference
in SAP S/4HANA or SAP ERP enables the issuing eligibility determination, and the generation and
of long-term vendor declarations to customers. By distribution of preference declarations to
automating the entire process, you can not only customers.
save significant time and effort but also minimize
the risk of presenting incorrect statements to By automating the entire vendor declaration
authorities. process, SAP GTS not only saves customers
significant time and effort but also minimizes
the risk of presenting incorrect statements
to authorities.
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