SAP Global Trade Services (GTS) is SAP's standard solution for addressing the issues companies must be concerned with when shipping goods from one country to another (import and export). SAP GTS improves efficiencies in these processes, which can become quite complex, especially when dealing with many countries and multiple regulatory authorities. Without having the proper knowledge or processes in place, many issues can arise, affecting both lead times and overall costs. Late, incomplete, missing, erroneous or mismatched documentation can lead to:
Delays at the freight forwarder: Affects lead time.
Customs hold: Affects lead time.
Customs fines: Affects bottom line cost.
Delayed payments: Affects bottom line cost.
In order to ensure that the products arrive on time at the customer's destination, the following obstacles must be overcome:
Compliance with regulatory requirements: Is this country under a trade ban?
Collaboration with the various government authorities: How difficult will it be to communicate with each authority in the proper format and language that is required?
Financial risk mitigation: Can all partners meet their contractual obligation? Are Letters of Credit maintained automatically?
International Trade Agreements: Does the product comply with the NAFTA program? If not, how can it be made eligible? Are trade agreements being fully leveraged in order to reduce tariff charges?
The following is a list of high-level processes that SAP GTS covers:
1) Export Management
Export classification
Outbound compliance
Outbound customs services
Outbound trade finance services
2) Import Management
Import classification
Inbound compliance
Inbound customs services
Inbound trade finance services
3) Special Customs Procedures
Customs warehousing
Inward processing relief
Entry to free circulation for prescribed end use
Outward processing relief
4) Trade Preference
Vendor declaration handling
Preference determination
Customer declaration handling
5) Special Regional Procedures
Goods movements subject to excise duties (EMCS)
Restitution management
Electronic compliance reporting