2014.06.05 expert session sap gts @ expertum - the challenges of a globalized economy - are you making the most of it

SAP Global Trade Services (GTS)

The Challenges of a Globalized EconomyAre you making the most of it?

Wim Du Ville

Global economy!?

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• Legal regulations• Customs changes• Communication

Global economy!?

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• Minimize your risk• Increase competitiveness

Global economy!?

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• Customs Management• Customs Procedures• Profitability Management• Compliance

SAP GTS

Automates your global trade processes

Helps you to avoid costly delays in your import and export flows

Helps you to comply with (changing) legalregulations

Allows you to respond quickly to business opportunies while mitigating financial risks

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GTS Overview

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GTS Overview

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ComplianceClassification ManagementExport / Import

Vendor Declarations Preference Determ. Customer Declar.Trade Preference

Bonded WarehouseInward / Outward

processing

EMCS Intrastat Letter of Credit

CustomsProcedures

SAP GTS Overview

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> 1300 customers worldwide

25 industries

Certified customs interfaces for Belgium, Netherlands, France,

Germany, UK, US, Brasil, …

Source: SAP AG

GTS Overview

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processing


CustomsProcedures

Compliance

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SPL Screening

‘Bad Guys’ are people listed on one of the many government listsof people and organizations that companies can’t do businesss with

Embargo checksAn embargo is a government prohibition against the shipment of particular products to a particular country for economic or political reasons. (Burma, Cuba, Iran, Libya, North Korea, Sudan, Syria, …)

Import / export licences

Are you sure your products don’t need an import/export licence?

Users can be warned or logistics processes blocked

Compliance – blocked documents

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Compliance checks can be used to block your logistics processes

• Sales order creation

• Delivery creation

• Goods issue

• Invoice creation

From a logistics point of view, block delivery creation seems the most common practice

GTS Import / Export

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SAP ERP SAP GTS

INBOUND DELIVERIES

BILLING DOCUMENTS

IDOC

CustomsPLDA/NCTS

XML / Edifact

Inbound Flow

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ERP Process Master DataPurchase

OrderInboundDelivery

GoodsReceipt(value!)

GTS Import process Classification

Import Compliance

Import Compliance / NCTS Comm.

Customsdecl. /

(PLDA comm)

Compliance check

SPL Screening

Embargo check

Import licence check

Inbound Flow

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Import Compliance


Customsdecl. /

(PLDA comm)

Compliance check

Inbound delivery – mandatory!

SPL Screening

Embargo check

NCTS Communication (IE07,IE43, IE44, IE25)

Will be extended with EIR-functionality

Inbound Flow

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GoodsReceipt


Import Compliance


Customs Declaration

Customs Declaration

Value! (PO/ Pro Forma invoice)

Duty calculation

PLDA Communication / Globalization

Outbound Flow

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ERP Process Master Data Sales Order Delivery(Pro-Forma)

Invoice

GTS Export process Classification

Export Compliance

Export Compliance

PLDA Communication

Export doc. Printing

Compliance check

SPL Screening

Embargo check

Export Licenses

Outbound Flow

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Invoice


Export Compliance

Export Compliance

PLDA Communication


Compliance check

SPL Screening

Embargo check

Packaging!

Outbound Flow

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Invoice


Export Compliance

Export Compliance

Export Document

Export Document

Based on (pro-forma) billing

PLDA communication

Print export documents

Summary: GTS import/export

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Checks your import and export partners and materials on compliance

Automates the creation of import and export documents

Calculates your import duties

Communicates with customs authorities

GTS Overview

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processing


CustomsProcedures

What if….

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With Bonded Warehouse and GTS

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Using Inward Processing Relief

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Summary

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Bonded warehouse

Avoid (or delays) import duties and VAT

Inward processing relief

Import goods, add value and re-export without payingimport duties on the components

SAP GTS assists in

Managing the stock in your bonded warehouse (DP/DUP)

Smart Picking, based on ship-to

Picks your products based on FI/FO

Monitors your components for IPR

GTS Overview

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processing


CustomsProcedures

Preference Management

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Enables your customers or affiliates to import goods withreduced tax and duties

Optimizes the market price of your products using the commercial benefits given by customs

European Free Trade Agreement (EFTA)(Maroc, Algeria, Tunis, Egypt, Libanon, Israël, …)

North-American Free Trade Agreement

Demonstrate to customs that your products are eligible for preferential treatment!


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Preference

processing

Request and dunning

for vendor declarations

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Maintenance of vendor

declarations

2

Aggregation of vendor

declarations

3

Preference

determination

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Source: SAP AG


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• Product A• Component 1 €50• Component 2 €200• Component 3 €100• Component 4 €150• Component 5 €250

}}

€350 EU origin

€400 non-EU origin

Preferential rule: max 40% non-EU origin components of your sales price

Calculated threshold: € 1.000 (based on €400 non-EU) Sales price ≥ €1000 EU Origin Sales price < €1000 non-EU Origin


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• Product A• Sales price €990• Components €350 EU

€400 non-EU• Profit €240• Customer pays €1035

Fixed import duty €45





Import duty 30%




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Preference

processing

Request and dunning

for vendor declarations

1

Issue and management

of vendor declarations for

customers’ purposes

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Maintenance of vendor

declarations

2

Aggregation of vendor

declarations

3

Preference

determination

4

Printing of movement

certificates

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Determination of

preference eligibility in

sales documents

5

Source: SAP AG

Summary: Preference Processing

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Enables your customers to import your products with reduced tax and duties

SAP GTS helps to

Request and maintain your vendor declarations

Calculate your minimum sales price

Print your customer and vendor declarations

Can give you a sales advantage against your competitors...

Demo: Inbound Flow

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Import Compliance


Customsdecl. /

(PLDA comm)

Demo: Outbound Flow

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Invoice


Export Compliance

Export Compliance

PLDA Communication


SAP GTS Overview

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GTS …

is a client on your existing Netweaver system or a seperate Netweaver system

integrates with any data source (SAP, Oracle, legacy-systems, ….

can import data from 3P data suppliers (MKData, Customsinfo, Bundesanzeiger, xml) for denied party lists, embargo, TARIC and duty codes, …

can be extended with HANA Live for reportingpurposes

GTS Benefits

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• Ensures a company doesn't import or export products and/or services from/to a country or a person that is mentioned on a watch list

Compliance Management

• Creation & communication of import and export documents, bonded warehouse, IPR

Customs Management

• Preference Processing: determine origin of produced goods and determine if they're eligible for preferential treatment, pricing guidelines, automated vendor communication

Risk Management

Compliance

Reduced admin costReduced import duties

More profitable pricing

Benefits

Thanks for listening!

Any questions?

Wim Du Ville

Global Trade Consultant

+32 477 96 21 93

[email protected]

Business

2014.06.05 expert session sap gts @ expertum - the challenges of a globalized economy - are you making the most of it