SAP Global Trade Service

Overview
Ramsun Technologies
Presented by: G.V. RAO
Founder & SAP GTS Solution Director

For a free assessment on SAP GTS E4H Implementation Projects

Contact us: info@ramsun-tech.com & visit www.ramsun-technologies.com

SAP GTS - Overview

• GTS stands for Global Trade Services and is a standalone SAP application that replaces the
existing foreign trade functionality in R/3 SAP. To conduct business in other countries,
businesses must comply with local laws, meet documentation requirements, and understand
complicated tariffs and duties. Failure to do so can be costly, so GTS helps automate these
processes to ensure compliance.
• The system for Global Trade Services (GTS) lets you automate your global trade transactions,
manage large numbers of business partners and documents, and ensure that your company
always complies with constantly changing international legal regulations.

• This solution supports your global trade activities with the tools you need to participate in the
modernized systems and electronic means of communication used by government agencies
and customs authorities. GTS helps you avoid costly delays and financial risks involved with
imports and exports and enabling you to react to international business opportunities quickly.

• Since SAP GTS it is based on SAP NetWeaver technology, the GTS system can be used with
both SAP and non-SAP systems as feeder systems.
SAP GTS – Technical Overview

• SAP GTS is a standalone application software from SAP based on the powerful SAP
NetWeaver platform.
• SAP GTS can be integrated with various SAP applications, e.g.., ERP, SCM, SRM, CRM,
and with Legacy systems.
• Provides tight integration of Business Partner data.
Background
Global Trade is also called as International Trade which deals with seamless goods movement across
borders
Prior to this release SAP has
General agreement on Tariffs and Trade was signed between 23 nations in 1947 in Geneva • SAP ERP Foreign Trade ( Before 2001)
In 1995 World Trade Organization established with an intention to supervise and liberalize world trade • GTS 3.0 (2001)
At present World Trade Organization has expanded to 164 members which contributes 98% of Global • GTS 7.0 (2005)
Trade • GTS 10.0 ( 2012)
WCO (World Customs Organization) is an interdependent intergovernmental Organization • GTS 11.0 (2015)
As supply chain started delivering products across borders, SAP delivered Foreign Trade Functionality • SAP S.4HANA for International Trade (2016)
initially. • SAP GTS Edition for SAP HANA ( 2021)
Subsequently SAP has delivered GTS as a product which can handle regulations Globally
For last 20 years GTS is prominent product is being used by many organizations.
To leverage HANA platform, SAP has come up with ‘SAP Global Trade Services , edition for SAP HANA’
SAP GTS - Business Benefits
• Reduce Risks of Noncompliance
To keep Business exports in line with statutory regulations, SAP GRC Global Trade Services lets businesses 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, businesses 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 the 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. facilitate global trade in meeting all the complexities
SAP GTS - Functions & Innovations

1. Compliance Management
Sanctioned party list screening
Embargo
Legal control - export
Legal control – import
2. Customs Management
Product Classification
Transit procedure
Customs processing
Printing trade documents
Communication with customs authorities
3. Risk Management
Preference processing
Letter of credit processing
Restitution
4. Electronic Compliance Reporting
SAP GTS- Compliance Management
1. Sanctioned Party List Screening ( SPL or DPL )
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. Whenever 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.
SAP GTS- Compliance Management

Compliance Management

Sanctioned Party List Embargo Legal Control

Application, Creation and Maintenance of

Maintain Sanctioned Party List Maintain Country Specific Embargo Check
Licenses
Review and Clear Blocked Customs Product License for Controlled
Business Partner Screening
Document Substances/Dangerous Goods

Import Transaction Screening Legal Control Process

Export Transaction Screening

Review and Clear Blocked Business Partner

Review and Clear Blocked Customs

Document

Approval and Escalation Process

 SAP GTS-Customs Management
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 authorities using electronic message and
calculation of customs duties on imports one example is SED shipper export declaration which is required:

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.
Customs Management Sub Process

Customs Management

Customs Inbound Process

Customs Outbound Process

Master Data
Master Data
Transfer of Material Document from SAP S/4 HANA
Transfer of Proforma/Billing Document from SAP S/4 HANA

Creation of Import Declarations

Creation of Export Declarations

Customs Communication Process PPF

Customs Communication Process PPT

Monitoring
Monitoring
 SAP GTS-Risk Management

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.
 Preference Management Sub Process

Trade Preference Management

Manage Supplier's Declarations Inbound Manage Supplier's Declarations Outbound

Perform Preference Determination
LTSD for Suppliers LTSD for Customers Purpose

Long Term Supplier Declarations Preference Calculation Preference Declarations to Customer

 SAP GTS-Electronics Compliance Reporting

• Electronic Compliance Reporting (ECR) in the Global Trade Services (GTS) system supports you in
statistics declarations that you must submit to the authorities for intra-European trade between two EU
member states. To do so, you must provide statistics data in the specific data format of your country's
statistics authorities, which can differ within the EU. The relevant data for the Intrastat declarations is
based the logistics processes. After the Intrastat-relevant data is collected from these logistics processes,
you can send it to your national statistics authorities in periodic Intrastat declarations.

• SAP Electronic Compliance Reporting (SAP ECR) helps to record the necessary statistics data from a
declaration period in Intrastat declarations.

•Shipments that your company receives from other member states of the European Union and shipments
that your company sends to other member states in the European Union.
 SAP GTS Master Data Flow

Master data is available locally in SAP Global Trade Services (SAP GTS). We can integrate SAP GTS fully in our logistics processes, like the
functions in Sales & Distribution, Materials Management, Customer Relationship Management, and Financial Accounting. As a result, SAP
GTS also requires master data from your feeder system(s). To do so, we first have to carry out an initial transfer of the master data.

After the initial transfer of data records, the product master data , business partner master data, and any bills of material, are available
in the SAP GTS system. This master data is in part in SAP GTS. For example, commodity codes for the customs processing and the
foreign trade law controls are assigned to the product master records, and business partners undergo sanctioned party list screening
SAP GTS Master Data - Transferring a Business Partner & Product Master
 Transactional Data Flow S/4 HANA & GTS – Export Scenario
S/4 Sales Order
H S
A T Outbound Delivery
A Blocked
N R
A T
Outbound Delivery

END

No

G
T Customs Document
at sales SPL Check Item Level
S order/Delivery level

Yes

Customs Document
Blocked

Business Partner SPL Lists Entries

Trade Compliance Team

Blocked Document Target Business Flow SPL Review

Email Notification Procedure. Blocked Customs Document END
 Transactional Data Flow S/4 HANA & GTS – Import Scenario
ME21N

S/4 Purchase Document

S
H T Inbound Delivery
A A Blocked
VL31N
N R
T
A Inbound Delivery

END

No

G
T Customs Document SPL Check Item
at PO/Inbound Level
S Delivery Level

Yes

Customs Document
Blocked

Business Partner SPL Lists Entries

Trade Compliance Analyst

Blocked Document Target Business Flow SPL Review

END
Email Notification Procedure. Blocked Customs
Document
Thank You