SAP Global Trade Services (SAP GTS) automates global trade processes and enables you to manage large

numbers of business partners, and high volumes of documents while also helping you to comply with changing legal regulations. It facilitates gloabl trade by providing you with the tools you require to respond to governments modernizing their systems and to customs authorities communicating electronically with businesses. SAP GTS also helps you to avoid costly delays in your import and export processes and allows you to respond quickly to global business opportunities while mitigating financial risks." SAP GTS key benefits :1) Ensure vigilant compliance with trade regulations 2) Mitigate risks of huge fines and penalties 3) Avoid costly shipment delays at borders and customs 4) Quick implementation 5) Lower IT maintenance costs 6) Faster Communication with customs 7) Lot of return of investment SAP GTS consists of Four Sub Solutions:-

SAP Compliance Management :-

contains all the functions relating to import and export control.

This sub solution allows you to monitor procedures that are subject to licensing requirements and to comply with legal regulations that restrict or even prohibit trade with individual states, political groups, and individuals. The SAP Compliance Management sub solution consists of the services below: Embargo Check Sanctioned Party List Screening Product-Related Check (Legal Control) All check functions are available in import and export processing. You can activate the individual services independently of one another.

SAP Customer Management :supports customs procedures. The focus is on the connection to electronic customs procedures and printing accompanying documents. There are also additional functions for goods classification. SAP Customs Management comprises the two services below: Customs Processing Transit Procedure The customs processing service supports specific electronic customs declaration procedures and the printing of customs documents. The transit procedureservice allows you to use the New Computerized Transit System (NCTS) in Belgium, Germany, FR, UK, NL, Austria, SW and Slovenia, by enabling you to electronically process this particular customs procedure. SAP Risk Management:has been added to SAP GTS 3.0. This is used for preference determination and the management of vendor declarations in relation to the issue of preference documents. It also supports the export of CAP products that qualify for a refund. The letter of credit administration has been added to SAP GTS 7.0. The SAP Risk Management sub solution offers the services below: Preference Processing Letter of Credit Processing

 Restitution The letter of credit processing service enables you to manage letters of credit in SAP GTS SAP Electronic Compliance Reporting :is a new addition to SAP GTS 7.1. This enables the regular issue of declarations for intra-European Union trade statistics (Intrastat). consists of a service to issue Intrastat declarations.

Functionalities of Foreign Trade with ECC and Global Trade Services :-

** copied from various sources. Sanctioned Party List Screening comparision :-

License determination comparision :-

Import /Export Declaration Comparision :-

The Above comparisions gives the advantage of GTS over Existing FT SD in ECC. SAP Global Trade Services helps companies manage all complexities of international trade including full regulatory compliance, interactions with customs and management of risk while trading on a global basis.

The SAP Global Trade Services (SAP GTS) packaged composite application is built on the SAP NetWeaver platform, an open and scalable technology platform. SAP GTS consists of separate modular components: SAP Compliance Management, SAP Customs Management, and SAP Risk Management. These components give businesses a competitive advantage by helping them speed import and export processes, mitigate risks, and comply with international regulations.

SAP GLOBAL TRADE SERVICES

GTS stands for Global Trade Services and is a standalone SAP xApps that replaces the existing foreign trade functionality in R/3 SAP. To conduct business in other countries, Business must comply with local laws, meet documentation requirements and understand complicated tariffs and duties. Failure to do so can be costly so and GTS helps automate these processes to ensure compliances.

In todays global markets, outbound shipments have to clear customs fast. That means ensuring that products are correctly classified and have the required complete and accurate documentation. Plus theres the challenge of mandatory electronic filing via the Automated Export System (AES) directly to U.S. Customs. Also, with the spread of global terrorism, export processes are subject to closer scrutiny than ever before. For business with partners overseas, its essential to ensure that theyre dealing with the right people, countries, and products. Business has to identify restrictions on specific items, countries of destination, and business partners, and there are host of regulations to comply with and severe penalties for noncompliance. In addition, to survive in todays fiercely contested global markets, Business cannot afford to pass up the opportunities offered by trade preference agreements such as the North American Free Trade Agreement (NAFTA). To do so, Business needs to provide detailed certification of the origin of their goods to their overseas customers.

Basic Architecture

Reference : SAP Standard Image This is the basic GTS architecture how it talk to Feeder System , all the master data like Material , customer vendor and all the transaction data like sales order delivery billing doc get pushed to GTS through RFC Call. And any message back to Feeder system flows through RFC call.

SAP GTS Capability Areas

Compliance management We have three sub modules: 1. Sanctioned Party List Screening: SPL helps business to comply with gov laws that prohibits dealing with parties (individual and organization) which are sanctioned by gov agencies. The detail we get from gov agencies and time to time there is addition and deletion to the same and same is uploaded to GTS

SPL allows screening of all customer, vendor. When ever order or delivery gets created in feeder system they goes to GTS and their partner are screened against the already uploaded DPL denied party list we also call it DPl.If a partner is one from the DPL the order get blocked for further processing. This screening can be synchronous or asynchronous. Synchronous means in real time means as soon as the order is created it goes to GTS and get screened for any we can do the screening at later time. 2. Embargo check: This functionality helps in complying with the restriction to doing business with certain Countries. Gov agencies and united nation can prohibit doing business with certain countries. 3. License determination: For many products valid license is required for export and import process, so the determination of valid license either for export or Import is taken care by this module. In license determination for export departure company comes into picture and for import destination country come into picture/ This module allows maintaining the valid licenses and if while in the process of license determination the license in missing for a product it puts the sales order on the block.

Custom Management Custom mgmt has got following sub-modules: 1. Product classification: This functionality facilitates the assignments of certain codes to products such As commodity codes: this helps in identifying the product by the custom authority on the declaration. Tariff codes for calculation duties. Export control classification number for license determination These codes can be maintained manually or can be uploaded by third party vendor. 2. Transit Process This drives the transit business process, gives the provision of e communication with custom system such as NCTS (European Union New computerized transit system.)Transit is a facility available to operators that allows the movement of goods across international borders under customs control while ensuring that any charges due on those goods in their country of destination are secured 3. Custom processing: This module assists in making declaration of exports and imports to customs

An authority using electronic message and calculation of customs duties on imports one example is SED shipper export declaration which is required: When a shipment is over $2,500 when an export license is required any shipment going to an embargoed country. 4. Trade service processing: Takes care of printing documents required for custom clearance. like shipper letter of instruction , Commercial invoice ,We can configure system for different message which can give us desired print , we can have smart form , PDF .Once Billing document comes to GTS it creates custom shipment document in GTS where we can have our configured messages of different prints.

Risk Management: Its the module enables the trade process that deal with the financial risk to the company 1. Preference processing Gives the flexibility to put duty as per different preference. As for EU and NAFTA countries product if it contains higher local contents the duties on such product is less. This requires up to date maintenance of declaration from the suppliers to find out the local contents. System allows Supplier declaration on the system, Preference calculation rules from data providers Notification to supplier to update their declaration Detail log to determine the origin of product. 2. Letter of credit Provides support for commonly used types of international payment A letter of credit is a document typically issued by a bank or financial institution, which authorizes the recipient of the letter (the "customer" of the bank) to draw amounts of money up to a specified total 3. Restitution Enables business to seek refunds from gov authorities for exports that qualifies for subsidies especially relevant for agricultural products from EU to non EU countries Allows to calculate refunds on export department, Allows to file refunds.

Electronic Compliance Reporting SAP Electronic Compliance Reporting (SAP ECR) helps to record the necessary statistics data from a declaration period in Intrastat declarations for the following transactions: Shipments that your company receives from other member states of the European Union Shipments that your company sends to other member states in the European Union

Business Benefits of SAP GTS

Reduce Risks of Noncompliance To keep Business exports in line with statutory regulations, SAP GRC Global Trade Services lets Business screen business partners against official sanctioned- party lists Easily Classify Products With SAP GRC Global Trade Services, Business can automate and streamline product classification Meet Complex Documentation Requirements With SAP GRC Global Trade Services, Business can identify all documents needed for a specific transaction, including those required by the EAR and by government agencies such as the U.S. Department of State Handle Electronic Communication SAP GRC Global Trade Services delivers the AES-certified functionality needed by Business Make the Most of International Agreements With SAP GRC Global Trade Services, Business can effectively handle trade-preference processing within the scope of free trade agreements of the Americas, such as NAFTA (North American Free Trade Agreement ) Mitigate Financial Risk SAP GRC Global Trade Services also provides support for commonly used types of international payment (such as letters of credit), helping make sure invoices are paid.