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SAP GTS Overview L1-L2
SAP GTS Overview L1-L2
SAP GTS Overview L1-L2
February 2023
PUBLIC
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Introduction
The Evolution of SAP International Trade Management – SAP Global Trade Services
r
fo e
A ad st
N
A l tr Li
/ 4H na tch ng
S io a i
P na t W e en
A
S te r P cr
in SA S
‘90 ‘91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25 ‘26 ’27 ’28 ’29 ’30
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP HANA 4
Planned future E4H version Pre SAP GTS GTS «Classic» Netweaver
Foundation
SAP Recognized as Market Share Leader
8+ years by ARC Advisory Group.1
SAP International
Trade Portfolio
Watch List
S/4 HANA for Screening
international SaaS on SCP
trade, Cloud Screening only
Embedded Order in SAP Store
Intrastat, Export Control
and related
Classification
Global Trade
Services
Supported integrated Supports nested licenses Full and partial Supported. Direct customs filing Supports EU Customs Equal functionality. Supports inbound LTSD,
with Order to Cash and agreements. Can embargo supported. Commodity, HS, for selected countries. warehouse, Inward and Can connect to aggregation, preference
(O2C) and Procure to calculate content based Regional and ECCN, USML, Other Customs filing through Outward Processing, both ECC and determination in O2C and P2P and
Pay (P2P) process in on local/external Bill of Product embargos Governmental broker enablement. Processing under S/4HANA (multiple outbound LTSD.
S/4HANA, TM Freight Materials. Supports ITAR, supported through Agencies eg FDA Customs Control, ERPs)
Orders in S/4HANA de-minimis, US Re-export legal control. Foregin Trade Zone,
Transportion etc. Processing Trade
Management Integrated with (China).
O2C, P2P in
S/4HANA
S/4HANA for
international
trade*
Identical Not supported. SPL is Simple license Full embargo Supported. Not supported Not supported. Equal functionality. Not supported. Trade Preference
functionality available through management. Cannot supported (all Commodity and HS. Can only consume requires content aggregation/local
provided in integration with SAP manage nested against ECCN. local data (own or external Bill of Material.
S/4HANA Cloud C1 Watch List Screening. licenses/agreements. 1).Integrated with instance of This functionality is not available in
(aka Public Cloud) Cannot calculate O2C, P2P. S/4HANA) S/4HANA.
and content/handle Bill of
S/4HANA Cloud C2 Materials. Does not *S/4HANA can *S/4HANA can integrate seamlessly
(aka Private Cloud) support ITAR, de-minimis, integrate seamlessly with Global Trade Services
US-Re-export etc. with Global Trade
Services
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2023-03-09 7
Compliance Management Customs Management Trade Preference Management
Customs Declarartion
Embargo (direct e-filing and broker Trade Agreements
Sanctioned Party Lists integration) Preferential Origin
Legal Control Customs Warehousing, FTZ, Long-Term Supplier
Processing under Customs Control Declarations
137+ Countries -
Preferential Tariff 337+ Free Trade
Agreements
43+ Countries -
Tariff Measures
1
The connection to SAP Transportation Management uses SAP Web Services.
2
The connection to SAP S/4HANA Cloud uses SAP Cloud Connector.
3
The connection to SAP Analytics Cloud uses HTTPS Connection.
4
Embedded or Hub-Deployment; Diagram shows Embedded Deployment
Utilize Our Unmatched Partner Eco-system & Broadest Selection of Legal Content Providers
A highly specialized network of experienced partners - globally.
Unmatched depth and width of legal content thanks to selection of content provider.
• Compliance Risk
• Violation of law and regulations, reporting requirements etc.
Environmental Risk Compliance Risk
• Reputational Risk
• Faulty products or services, poor customer support experiences,
negative publicity
• Environmental Risk
• The risk of heavy fines due to material damage and Financial and Economic Risk
personal injury caused by the enterprise
Create Quation
Generate picking list / request Release/block documents Maintain Sanctioned Party List
Information needed: Departure country (& Region), Arrival country (& Region) Product Coverage
Example: US-Cuba
Information needed: All involved Business Partners (Ship-to, Sold-to, Payer, Bill-to-party, Bank, Carrier, etc.)
Product Coverage
Maintained in-
app
Business Partners
Manage Blocked
Negative List Business Partners
Exclusion words;
Limited, corp. AG,
SE, International …
Positive List
Business Documents
Manage Blocked
Business
Sanctioned Documents
Screening
Party List
Settings
External files, e.g. Excel such
as Match Rate…
Sanction Party List
Screening User Decision
Content Providers
Centerpoint
User Decision
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Centerpoint
20
The First Step to Trade Compliance - Sanctions
200+ Sanctions
Lists
The selection above is for illustrative purposes only and do not represent a
complete overview. Number of agencies are constantly growing, however
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
selection varies between content providers. 21
The Second Step to Trade Compliance – Other Agencies
200+ Sanctions
Lists
You have to
determine which
other sanctioning
agencies you
would like to or
need to comply
with in addition to
those applicable
by law
The selection above is for illustrative purposes only and do not represent a
complete overview. Number of agencies are constantly growing, however
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
selection varies between content providers. 22
Sanctions List Types Evaluation of SAP Business Integrity
Screening is based on trade barrier
capabilities only. SAP BIS has a much
wider functional scope.
List Type SAP Global Trade Services, edition SAP Watch List Screening SAP Business Integrity Screening
for SAP HANA
Denied Parties such as * Well suited for Business
Partner Screening (MDG)
Specially Designated Nationals
(SDN)
Entity Lists * See above
Combination Lists (of Denied Parties and Checks only name and
addresses,no license ctrl. * See above
Wanted)
Health & Human Services
Content currently not
available * See above
Vessels
Content currently not
available * Lack integration to TM
Beneficial Ownership
Content currently not
available ** Project
Well suited for Business
Partner Screening (MDG)
work needed for
transactional integration
Information needed: Classified Product, (Bill of Material), Value, Quantity (Finished products and components),
All Involved Business Partners (Ship-to, Sold-to, Payer, Bill-to-party, Bank, Carrier, etc., Departure Country (&
Region), Arrival Country (& Region)
Product Coverage
Information needed
Legal Control
Departure Country (& All involved Business
Region) Product, (Bill of Material), Value & Quantity Partners, (Ship-to, Sold-to,
Arrival County (& Region) (Finished products and components) Payer,Bill-to-party)
Solution
Automatic XML upload of classification data including Excise Control Code (ECC) numbers, Harmonized
System (HS) codes, and so on
Identification of products needing classification from a work list
Classification tool with search help
Mass classification and reclassification using XML uploads
Benefits
One instance for all classification activities enables global consistency
Regular updating of your data using automatic reclassification with reliable XML files from authorized
providers
Visibility into classifications across countries and regions
Solution
Automatically upload classification data, such as ECC numbers and HS codes
Identify products needing classification from a work list
Use a classification tool with search help
Perform mass classification and reclassification using XML uploads
Incorporate data in material master to support Partner Government Agency (PGA) processes, such
as elements required by the Food and Drug Administration (FDA)
Benefits
One instance for all classification activities, which enables global consistency
Regular updating of your data using automatic reclassification with reliable XML files
from authorized providers
Visibility into classifications across countries and regions
Key features
Product classification Export documents
Partner screening Electronic customs communication
Export license determination Country localizations
Embargo check Event management visibility
Customs
Product classification
SAP Global Trade communication,
(HTS,1 ECCN,2 Export/import Export/import
document printing,
Services Schedule B, compliance check compliance check
special customs
and so on)
(REACH and others)
1
Harmonized Tariff Schedule 2 Export Control Classification Number
Border
Outbound Billing
Sales Order Goods Issue
ERP (SO)
Delivery
(GI)
Document
(OD) (BD)
SAP Export
Declaration
GTS
Calculate customs value as well as duties, taxes, Calculate duty and tax
Solution
Manage import processes, including licenses and
Automatically consolidate data from multiple sources (purchase
automatic license determination orders, invoices, advance shipping notices, and so on) to produce
required declarations and documents
Classify products for import Automatically determine which forms and messages are required
and validate the completeness of information before printing or
Create import declarations and documents submission
Use certified customs interfaces for import entry self-filing, Importer
Security Filing (10+2), and PGA support, such as FDA Prior Notice
Calculate customs value as well as duties, taxes, Use a certified Automated Broker Interface (ABI) and Automated
and fees Commercial Environment (ACE) interface for the United States
Provide required data to partners, such as brokers
Integrate imports with the inbound supply chain Create supplementary declarations and reconciliation
Benefits
Improve quality and process efficiency by automating previously
manual document generation
Reduce delays by automatically generating documentation when and
where it is needed
Leverage standard forms flexibly while still meeting unique
requirements based on geography
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 32
Integrate imports with the inbound supply chain
Product and
Procurement business Purchase Shipping Goods
process master data order notification receipt
(supplier)
1
Harmonized Tariff Schedule 2 Export Control Classification Number
Border
Purchase Inbound
Goods
Delivery/Advanced
ERP Order Shipping Notification Receipt
(PO) (ASN)
(GR)
SAP Import
Transit (NCTS) Declaration
GTS Closure after GR
Import
Import at the Border Declaration
Goods Supplementary
Import Receipt Import
Two Step Procedure Declaration (GR) Declaration
Enhance the communication with brokers to act on your behalf with Customs
Solution
Extend ability to leverage broker relationships to exchange
and retain customs data
Utilize a standard broker interface to automate exchange of
trade data with brokers when self-filing is deemed infeasible
Receive and store actual entry data submitted by brokers to
customs
Simplify communication of product data to brokers
Benefits
Simplify the exchange of trade data with brokers over a
standard interface, minimizing customization efforts and
costs
Use SAP GTS in additional countries and regions where
localization is delivered through company relationships with
customs brokers
Improve the ability to leverage partner ecosystem for
additional country localization
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 37
Importer Centric Process
https://www.expeditors.com/ https://www.livingstonintl.com/
Example provided by
Goods Value
Indirect Payments
Commision (excl. Sales commision)
Agent fee
Packaging
Material, components included in imported goods
Tools used to produce imported goods
Used material for production of goods
Drawings, notes for imported goods
License fees
Revenue from re-selling
Transport cost to customs border
Other handling costs to customs border
Insurance Cost tro the border
Air Freight Cost
Transportation Cost after border
Payments for installation and maintenance after import
Other Payments
Duties and taxes to be paid due to import
Customs Value
Without Customs
Pharmac. Products
Preferential Duty
Duty 3rd Country
Anti-dumping
Sum duties
Sum of Customs Value and duties
Air Freight cost within EU (import VAT)
Transportation cost within EU (propotionally)
Other transport costs within EU
Cost, import Duties
Import VAT
Value – Foreign Trade (value at border crossing)
Discount (Statistical)
Cash Discount (Statistical)
Key features
Bonded warehouse Intrastat
Inward and outward processing relief China general and processing trade
Processing under customs control Foreign-trade zone
Solution
Support for outward processing relief (OPR), inward processing relief (IPR) and
prescribed end use
Export
Import
Monitoring of all products that are exported under the outward processing (OP) customs
SAP GTS
regime or imported under the inward processing (IP)
Monitoring of all components and products that are imported but still under OP control
because they are stored temporarily within a customs warehouse
Monitoring of the OPR and IPR documentation Special customs procedures
Control of the reimport period for all products that are exported under the OP customs
regime, or reexport period for all products that are imported under the IP customs
regime
Benefits
Reduction of duty exposure
Full integration into the logistic process and multiple monitoring features
Solution
Manage the complex tasks associated with bonded warehousing
Customs Warehouse (Logical Stock View)
Automate the tracking of the status of goods in inventory (duty paid or duty
unpaid) Customs SAP GTS
Release for free
circulation, entry for
Process determination features to automate subsequent customs procedures Declaration for Stock
consumption
placing goods
into customs
Stock Separation
Indicator
Re-export
• Material
Benefits warehouse
•
•
CWH ID
Duty
paid/Duty
procedure after •
unpaid
Country of Inward Processing
One instance for all bonded-warehousing activities goods receipt
Origin
Solution
Support for operation of a U.S. foreign-trade zone
Automated management of zone admissions
Accurate tracking and reporting of zone inventories, including zone manufacturing
Management of zone withdrawals, including entry for consumption or export
Creation and delivery of zone reports and filings
Benefits
Greater accuracy in tracking and reporting inventories
Current and accurate bill-of-materials data that properly reflects inventory
consumption
Reduced costs for interface development and maintenance
Smooth flow of goods into and out of your manufacturing zone
Solution
Enablement of import and export for China
Required master data elements, including supervision codes
Ability to file required declarations and documents
Maintenance of tax refund rates
Customs book (handbook or e-manual) setup and management, including regulatory compliance
and trace transparency
Management and tracking of inventories
Closing portion to monitor component consumption when exported
Simplified settlement calculation
Benefits
Expand business operations in China from a singe global trade platform
Reduce customization through use of standard processes
Minimize costs through delivered integration with SAP ERP
Solution
EMCS – defer or eliminate excise taxes in the European Union
Management of Intrastat reporting
REACH compliance to manage content of certain hazardous materials entering the EU
Country localization – over 30 certified e-filing interfaces for customs and other government agencies
Benefits
Cost-effectively comply with local regulations
Enter new markets rapidly thanks to localization
Solution
Intrastat requirements are known as electronic compliance reporting (ECR) in SAP GTS.
Data for declarations is transferred to SAP GTS from feeder systems, including standard integration to back-end SAP
software.
Master data (commodity code and classification) in SAP GTS can be used.
Work list entries are automatically generated based on the transferred data; Intrastat declarations are generated from work list
entries.
A file can be created with aggregated data and sent to the appropriate authority.
Multiple data formats are provided for reporting (XML, EDIFACT, and ASCII) to support Intrastat requirements for multiple
countries.
Benefits
One central solution for all feeder systems
Single solution for Intrastat declarations in 24+ EU countries
Rapid entry into new markets due to localization
Changes simplified through mass processing capabilities
Minimized maintenance efforts through use of utilizing existing master data
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 49
Trade Preference Management
Trade Agreements
Preferential Origin
Long-Term Supplier
Declarations
Why Trade Preference Management?
https://trade.ec.europa.eu/access-to-markets/en/home
Solution
Collect relevant purchase orders and material documents
Request, maintain, and dun long-term supplier declarations using a work list based on purchase
orders and material documents or through an annual run
Empower suppliers to maintain the origin of materials with self-service functionality
Automatically aggregate long-term vendor declarations for your materials sourced from multiple
suppliers
Benefits
Efficient handling of declarations
Improved compliance
Solution
Calculate product origin for products using official trade agreement rules, including:
– Tariff shift, regional value content, heading change, de minimis, tolerance rule, minimum processing,
set of goods, and so on
– Usually involves calculating the threshold value to determine the preferential origin
Determine preference eligibility using different methods
– Sales documents and (pro forma) invoices (transfer cost method, for example)
– Bill of materials (net cost method)
Benefits
Increased efficiency by automating manually intensive determination processes
Improved traceability and accuracy
Solution
Automatically generate and manage declarations for customers receiving your products
Issue and reissue declarations in the event of a change in preferential eligibility
Print certificates of origin
Integrate with sales and distribution processing in the SAP ERP application and customs
management in SAP GTS
Benefits
Improved compliance
Reduced risk of providing outdated declarations
Efficient handling of declarations
• Preference Aggregation
Preferential origin determination of external
sourced products
Inbound • Preference Calculation Outbound
Supplier LTSD Preferential origin determination of in-house Customer LTSD
Management produced products Management
• Master & Organizational Data for Preference
• Integration of feeder systems
Organizational
Units
Plant Groups Plant
Bill of Material Foreign
Product Trade
(BOM)
Data Organization
(Materials)
LTSD Specific
Master Data
Procurement Cost Prices
Indicator Sales Prices
Trade Agreement Product Classification Document of
Commodity Code Origin
Preference
Rules
Suppliers Customers
Trade Preference Content Providers
Rules
Bill of Material
Purchase Order Goods Receipt (BOM) Sales Order Invoice to
Customer
SAP GTS
E4H
Aggregration &
Calculation
Outbound
LTSD LTSD
LTSD
Request Response
Document of Origin
Product Data Reissue
Trade Preference Reason
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 57
Rules
Transactional Data – Inbound Processing LTSD Request
Purchase Order
Send
Goods Receipt Creation of LTSD
Goods Receipt
Request
Released
LTSD Request
Update
Reference
Update
LTSD
LTSD
Status: Status:
(Partially) Released Canceled
Update
00
tio n 87 05 3 0
Classifica
Component
Driver chassis Drivers Cab Lifting body
Ex Chapter
87:Manufacture in
Use of the preference which the value of all
statement from the product the materials used
master does not exceed 40 %
of the ex-works price
of the product.
(New)
Outbound LTSD Outbound LTSD
Invoices
Issue Outbound
LTSD
New Invoices
Reissue Reason
Reissue Reasons need to be
Reissue Reason Check analyzed and completed
LTSD
Reissue Reasons
Completed by:
• Reissued LLE
Status: • System Status:
Open • User Completed
Functional Details
Identity-Based Preference Processing to be fully integrated in
GTS, edition for HANA 2023
Leverage preference capabilities at different product levels,
such as batches
Utilize shipment-based declarations as preferential origin from
suppliers
Value Proposition
Increase customers ability to leverage preference capabilities in
industries where products are managed at a unique level, such
as process industry usage of batches
Streamline delivery of functionality with full integration with
standard GTS
Capture preferential origin for externally sourced products
Functional Details
Improved system support for product classification
Ability to include additional data for reporting to government
agencies
Minimize missing data in customs declarations
Value Proposition
Streamline classification processes to reduce efforts
Lower delays caused by incomplete customs declarations
Reduce need for manual data input
Functional Details
Basic export processes for Brazil, with import to follow
Support single-window submission of e-manuals in China
On-going legal changes for existing localization
Value Proposition
Leverage standard global trade capabilities to support business
in additional markets
Minimize reliance, and costs, associated with use of 3 rd parties
for customs clearance
Reduce effort and increase quality of customs declarations
Functional Details
Enhance GTS integration across SAP's cloud solutions,
including SAP Logistics Business Network
Develop native cloud services on SAP Business Technology
Platform (BTP) supporting key global trade processes
Extend SAP Global Trade Services through BTP cloud
services, including those developed by partners
Value Proposition
Global trade organizations select only the cloud services
needed for their specific business
Add cloud services as business requirements expand or
change
Leverage network of companies to connect and exchange
global trade data more quickly and efficiently
Enhancements and updates available more quickly
>2,500 Automated
SKUs reviewed for USMCA eligibility, covering
over 20,000 transactions annually Forms (Adobe) from SAP GTS and the SAP ERP application,
including United States Department of Agriculture (USDA)
certificates and shipper’s letter of instruction
1
Customer interviews
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 71
SAP Global Trade Services supports your
vision for global trade
Drive consistency across global operations
From current customer deployments using SAP GTS 1
Standardized >18
Import, export, and license
Countries supported for classification within
determination management, including SAP GTS, including the Association of
classification processes for more than Southeast Asian Nations (ASEAN) region
32 countries
Deployed
An automated global trade platform for
Integrated centralized sanctioned-party screening, embargo
checks, classification, licensing, and preference
With freight forwarders and
customs-certified systems
Maximized Increased
Accuracy, productivity, and
Reconciliation and data-validation activities with efficiency across trade processes
Increased trusted data and automated information flows
$240,000
$1.4 million Reduction in annual costs with certified customs interfaces for self-
filing in the United States (AES) and Germany(Automatic Rate
Incremental annual savings by processing and Local Customs Clearance System: ATLAS)
USMCA through SAP GTS (~8 million overall)
Lowers
Improves Total cost of ownership using existing SAP
resources to support SAP GTS
Consistency and lowers costs by centralizing the
management of classification and screening processes
through a shared-services team Drives
Additional savings through duty avoidance by using bonded
warehouse functionality in Germany
1
Customer interviews
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 73
SAP Global Trade Services supports your
vision for global trade
Elevate global trade in the organization
From current customer deployments using SAP GTS 1
Created Fewer
A proactive environment across the organization,
building trade compliance into product-planning Supply chain disruptions due to
automation of trade activities
and release strategies
Reduced Improved
Global trade-compliance team productivity
Tactical daily work for trade thanks to management-by-exception approach
compliance professionals
Zero
Leveraged Increase in headcount to support
new processes with SAP GTS
Strong IT and business partnership to produce one of the
most successful SAP software implementations at this
organization
1
Customer interviews
© 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 74
Global Trade Management Global Trade Management
Optimize cross-border trade
Use Cases
• $90 million annual ROI generated from duty savings and
suspension, broker savings, self-filings, and more
• Managing trade across more than 150 plants and warehouses
• 7.6 million business partners screened with greater uniformity
• Fewer supply chain disruptions due to automation of trade
activities
www.sap.com/contactsap