GRC GTS Automotive

SAP GRC Global Trade Services 7.2 Preferred Practice US–Automated Export Systems (US-AES) SAP GRC November, 2008

2 SAP GRC GLOBAL TRADE SERVICES 7.2 PREFERRED PRACTICE US - AES

Introduction SAP GRC Global Trade Services (GTS) release 7.2 provides for automating communications with Customs and Border Patrol (CBP) with US – Automated Export Systems (US-AES). The Automated Export System (AES) is a joint venture between CBP, the Foreign Trade Division of the Bureau of the Census (Commerce), the Bureau of Industry and Security (Commerce), the Directorate of Defense Trade Controls (State), other Federal agencies, and the export trade community. It is the central point through which export shipment data required by multiple agencies is filed electronically to Customs, using the efficiencies of Electronic Data Interchange (EDI). AES provides an alternative to filing paper Shipper's Export Declarations (SEDs). Export information is collected electronically and edited immediately, and errors are detected and corrected at the time of filing. AES is a nationwide system operational at all ports and for all methods of transportation. It was designed to assure compliance with and enforcement of laws relating to exporting, improve trade statistics, reduce duplicate reporting to multiple agencies, and improve customer service. * This excerpt is from US Customs and Border Protection Website; CBP.com As of June 2, 2008 the CBP released this notice. Mandatory Automated Export System (AES) Filing for all Shipments Requiring Shipper’s Export Declaration (SED) information The U.S. Census Bureau has issued the final rule implementing provisions in the Foreign Relations Authorization Act, Public Law 107-228. This rule was published in the Federal Register on June 2, 2008, amending Title 15, Code of Federal Regulations, Part 30, Foreign Trade Regulations (FTR) in its entirety. Effective July 2, 2008, the Census Bureau is requiring mandatory filing of export information through the Automated Export System (AES) or through the AESDirect for all shipments where a Shipper’s Export Declaration (SED) is required. We are also providing the trade an additional 90 days to implement these new requirements. After the 90-day implementation period, which ends September 30, 2008, you must file your export information electronically through the AES or AESDirect. Additionally, these new regulations have tougher penalty provisions that affect everyone in the export process. Penalties may be imposed per violation of the FTR from $1,100 to $10,000 both civil and criminal, for the delayed filing, failure to file, false filing of export information, and/or using the AES to further any illegal activity. Also, all AES filers are faced with new filing deadlines by mode of transportation for reporting export information. It is important that you understand these new requirements so that you avoid the increased penalties and seizure of your commodities. The Census Bureau has instructed filers of export information to make every effort to submit these data via the AES or AESDirect to eliminate the use of paper SEDs immediately. During the 120-day implementation phase, the Census Bureau will use

©SAP Labs LLC. 2008



“informed compliance” to outreach to filers identified in violation of the FTR. Anyone submitting paper after September 30, 2008 will be in violation of the FTR and subject to penalties. The following is a guide for the implementation of the functionality of US-AES with SAP GTS 7.2 and SAP ECC 6.0 as a Preferred Practice. Once this guide is completed, the implementer should be able to communicate successfully with the Customs office. Prerequisites PREREQUISITE DETAILS

SAP GRC Global Trade Services GTS Release 7.2 Required

Required components and Support Packages for SLL-LEG 720

SAP_BASIS 700 SAPKB70010

SAP_ABA 700 SAPKA70010

PI_BASIS 2005_1_700 SAPKIPYJ7A

SAP_BW 700 SAPKW70010

SAP_AP 700 SAPKNA7005

Support Packages for SLL-LEG 7.20

Note 1113991

SAP ERP backend system for logistics processing

ECC 6.0 – Configuration and enhancements will need to be done to determine the billing documents and information that come over to GTS Customs Processing. (Not included in this documentation.)

R/3 plug-in for SAP Global Trade Services (SAP GTS)

Note 858706

Seeburger Adapter One of the adapters that can be used for the EDI communication. Plan and budget for approx 1-2 weeks of time and cost for Seeburger Consulting. The adapter (client software, interface maps) is included in the GTS license, but the installation and configuration activities performed by Seeburger are not.

Customs Communication Authorization

Request and receive authorization for electronic communication with a Customs Office, this would include ID and password.

Letter of Intent Complete and submit a letter of intent to US Customs as soon as possible. It can take a long time (months) to have a Customs Case Officer assigned and engaged.

i. You can find the LOI form here: http://www.cbp.gov/xp/cgov/trade/automated/aes/letter_intent/form_commodity_data.xml

ii. And instructions/overview

https://service.sap.com/sap/support/notes/858706

http://www.cbp.gov/xp/cgov/trade/automated/aes/letter_intent/form_commodity_data.xml

http://www.cbp.gov/xp/cgov/trade/automated/aes/letter_intent/form_commodity_data.xml


here: http://www.cbp.gov/xp/cgov/trade/automated/aes/letter_intent/register.xml

IDoc Customizing IDoc for communication with Customs Office. The IDoc captures the necessary data used by the Seeburger adapters to send information to the Customs Office in the correct format.


http://www.cbp.gov/xp/cgov/trade/automated/aes/letter_intent/register.xml


Scenario Description This process describes the export of product from IDES US, USA to IDES AG, Germany. The product is subject to authorization. The foreign trade relevant activities are fully integrated in the logistic process. The relevant export documents for AES are available and can be printed at the end of the process.

PROCESS DIAGRAM



PROCEDURE

1. Foreign Trade Organization & Legal Unit SAP Global Trade Services (SAP GTS) uses the SAP Business Partner Concept. You create a business partner for each party (person, organization) involved in foreign trade business. Within the individual business transactions, such as an import transaction, a business partner can take on various partner functions, providing the business partner meets the relevant requirements.

• Go to the IMG using the transaction SPRO to create the foreign trade organization and legal unit. • Create the foreign trade organization and legal unit using Transaction - BP • When creating both foreign trade organization and legal unit,

o You have to at least enter the address and assign the relevant role for each business partner



SAP Global Trade Services → General Settings → Organizational Structure → Define Foreign Trade Organizations



SAP Global Trade Services → General Settings → Organizational Structure → Define Legal Units

• Assign company code to foreign trade organization

SAP Global Trade Services → General Settings → Organizational Structure → Assignment of Organizational Units from Feeder System to Foreign Trade Org.

• Assign legal unit to foreign trade organization



SAP Global Trade Services → General Settings → Organizational Structure → Assign Legal Unit to the Foreign Trade Organization

• Assign plant from feeder system to Legal Unit SAP Global Trade Services → General Settings → Organizational Structure → Assignment of Organizational Units from Feeder System to Legal Unit

2. Set up the Legal Regulation

Legal regulations are the central control element for service performance. Here you define which laws are to be checked for exports and imports. In addition, you assign different deadline types to each legal regulation and the country groups a legal regulation is valid for. You need the country groups, for example, if the country groups are to be used when the license types are determined.

• This legal regulation represents the procedure of AES. • The legal code is: customs processing • The country from which the legal regulation was issued is: US



SAP Global Trade Services → General Settings → Legal Regulations → Define Legal Regulation

3. Determination Procedure You have to enter a determination procedure to enable the system to determine the legal regulations for a service. To do so, you assign the determination table to the determination procedure. The system can then use the departure country (export) and the destination country (import) to determine the legal regulations. You can also define for each determination procedure whether the system stops determination as soon as it finds the first active legal regulation or whether it determines all the active legal regulations for the service. If your logistics processes involve several countries and legal regulations in a service, this lets you perform the checks and determination for several legal regulations.

• Create a determination procedure including its description • Assign a sequence number, i.e. 10 and the determination strategy



Define Determination Procedure

SAP Global Trade Services → General Settings → Legal Regulations → Define Determination Procedure for Active Legal Regulations

Assign Determination Procedure to a service SAP Global Trade Services → SAP Customs Management → “Customs Processing” Service → Assign Determination Procedure for Active Legal Regulations



4. Activate the Legal Regulation at Country or Country Group Level

Here you activate the legal regulations for each departure country or country group (export) and destination country or country group (import). This enables you to specifically define the validity area of a legal regulation.

• Activate the legal regulation for export.

SAP Global Trade Services → General Settings → Legal Regulations → Activate Legal Regulations at Country/Country Group Level

5. Activate Legal Regulations Here you activate the legal regulations for each departure country or country group (export) and destination country or country group (import) for each service that will be active.

SAP Global Trade Services -> Customs Management -> “Customs Processing” Service -> Activate Legal Regulations



6. Configuring Messages for Post Processing Framework

(PPF) Actions for Customs Shipments/Declarations The Post Processing Framework allows for the configuring of the technical medium that you use to communicate to the US Customs office.

SAP Global Trade Services →SAP Customs Management → General Settings → Communication Processes → Define Techn. Medium for Msgs (PPF Actions) from Cust.Shipm. and Cust.Decl.



Action Definition

Process Type



7. Check electronic messages

These messages are for the electronic actions that the system uses to communicate to the US customs authorities for the Shippers Export Declaration.

SAP Global Trade Services →SAP Customs Management → General Settings → Communication Processes → Define Conditions and output Parameters for Comm. of Cust. Ship. & Cust. Dcl



SAP Global Trade Services →SAP Customs Management → General Settings → Communication Processes → Define Messages for Communication Processes



8. Legal Regulation: Customs Management Service Control • The settings of the possible status and their sequence for the authorizations • Settings of the possible status and their sequence for the guarantees and the assignment of time zones

(CET)

SAP Global Trade Services → SAP Customs Management → “Customs Processing” Service → Control Settings for “Customs Processing” Service



9. Set up the process flow for customs processing with AES To enable the declaration of export of goods from the USA with the electronic customs system Automated Export System (AES) you must define a process flow that allows you to electronically communicate with the US customs authorities. The process template is where electronic messages are attached for entering and sending a Customs Export Declarations. If your export declaration is accepted, the customs authorities send you a confirmation with a registration number (confirmation number).

• Define process template You assign the schema for electronic messages to this process template.

SAP Global Trade Services → SAP Customs Management → General Settings → Communication Processes → Define Control Settings for Communication Processes

• Define processes

Set up the processes for “ending the transit procedure” and opening a transit procedure



• Define activities Maintain all possible activities for the chosen process

• Assign the messages to the activities

All messages needed for the activity need to be assigned



• Define the action sequence Create a sequence of activities; one activity can be part of more than one action sequences

• Define the follow-up activities Here, you define the succession of activities within the sequence of activities



10. Define Procedures for Customs Code List

As a first step for getting the correct duty types assigned, a customs procedure is created so that custom codes can be attached. SAP Global Trade Services -> Customs Management -> General Settings -> Customs Code Lists -> Define Procedures for Customs Code List



11. Customs Code List

So that the correct duty can be calculated, a scheme of Custom Codes is created, objects from the custom code list are assigned to the legal regulation, and the duty types of the legal regulation are designated for the customs schema. • Schema for customs code lists

Create a schema for customs code lists: i.e. CUS_US customs processing USA

SAP Global Trade Services → General Settings → Numbering Schemes → Define Scheme for Customs Codes

• Assign objects from customs code lists to legal regulation Assign a schema for customs code lists to the data set of legal regulation and the object of the code list

SAP Global Trade Services → SAP Customs Management → Customs Code List → Assign Customs Code Lists Procedure to Legal Regulations



• Maintain customs code lists You can maintain the assigned customs code lists for the legal regulation For the customs code list “Default Declaration Type“, you also need to maintain the process activity. Transaction - /N/SAPSLL/CUSCS_VMAINT

SAP Global Trade Services → SAP Customs Management → Customs Code List → Maintain Customs Code Lists for Legal Regulations



12. Print control for documents

The following setup is used to configre print control that enables you to create and print the Shippers Export Document. Other customs-relevant foreign trade documents can be configured in the same manner.

SAP Global Trade Services →SAP Customs Management → General Settings → Communication Processes → Print Control for Foreign Trade Documents



13. Message and Printer Determinations

Transaction - /N/SAPSLL/PRNDT1

The messages will be assigned to a legal regulation as well as a document type which is essential for the message determination in the customs document; without this definition, the message does not appear in the customs document



SAP GTS Area Menu -> Customs Processing - Import/Export

Message Parameters -> Message Determination

Message Parameters -> Printer Determination





14. Defaulting Data Based on the business rules, GTS will allow you to default data in the Export Customs Declaration. Defaulting data will greatly speed up the process of creating the declaration needed for export. Transaction - /n /SAPSLL/SAPSLLEG_TDP

Default Rules



Once the rules are set in the customizing, the business can set the declaration default values from the GTS Cockpit based off the procedure and legal regulation.

Transaction - /N/SAPSLL/DPDATA_MNTN

SAP Customs Management -> Master Data -> Define Rules for Default Document Data

Most of the drop down lists can be maintained in the custom code lists from steps 11 and 12.


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SAP GRC GLOBAL TRADE SERVICES 7.2 PREFERRED PRACTICE US - AES

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