SAP Global Trade Service (SAP GTS S/4HANA)

Optimize Your International Trade Processes with SAP GTS and SI PRO Consulting. Trust SI PRO Consulting, the specialist with over 25 years of experience in designing, implementing, and supporting SAP Global Trade Management solutions.

The global economy faces significant challenges. International trade today is marked by rising tariffs, increasing protectionism, and continually evolving trade regulations. Businesses are increasingly confronted with the challenges of navigating complex supply chains and dynamic markets, making adaptability and efficiency indispensable. SAP Global Trade Services e4H (Edition for HANA) is designed to provide solutions to these issues. With SAP GTS e4H, you have a reliable and powerful solution that automates your international trade processes and ensures you remain compliant and competitive. SAP GTS e4H facilitates the streamlined handling of intricate processes like export control, customs clearance, preference determination, and electronic compliance, empowering you to maintain complete visibility into your supply chain at all times.

Empower Your Global Trade Success with SI PRO Consulting and SAP GTS e4H – We provide end-to-end support, including expert guidance, customized implementation, industry best practices, comprehensive training, and reliable ongoing assistance to ensure that you unlock the true potential of SAP GTS e4H.

Compliance Management: Always Stay Legally Compliant

In a globalized world with constantly changing regulations and increasing regulatory requirements, SAP GTS Compliance Management ensures that your trade processes remain legally compliant at all times. The solution integrates all aspects of trade control – from monitoring international sanctions lists to managing export licenses. With comprehensive integration capabilities into existing system landscapes (SAP ERP, SAP S/4HANA, non-SAP feeder systems), SAP GTS e4H seamlessly integrates into your global supply chain, ensuring transparency and efficiency in your trade processes. Additionally, with extensive analysis and reporting tools, such as the Audit Trail apps, SAP GTS e4H enables the early identification and resolution of potential compliance risks. SI PRO Consulting brings years of expertise in SAP GTS Compliance Management, combining deep knowledge with proven best practices from the chemical and discrete manufacturing industries.

Compliance Management consists of three elements:

Sanctions List Screening: National and international regulations require companies to carefully screen their business partners to ensure that no business relationships exist with individuals, organizations, or countries associated with funding terrorist organizations. These regulations aim to safeguard global security and ensure that companies do not unintentionally support illegal activities. Violating these rules can have severe consequences: companies may face hefty fines, legal penalties, and, in the worst-case scenario, trade bans that significantly limit access to international markets. Compliance with these regulations is not only a legal obligation but also a key factor for a company’s long-term success and reputation. Sanctions list screening enables the automatic review of business partner addresses or documents (purchase orders, sales orders, deliveries, invoices) against international sanctions lists, such as the Dow Jones Watchlist or the EU list. The EU list includes entries from regulations like (EC) No. 2580/2001 (specific restrictive measures against persons, groups, and organizations to combat terrorism), (EC) No. 881/2002 (restrictive measures against certain persons and organizations linked to Al-Qaeda and the Taliban), and (EU) No. 833/2014 (restrictive measures regarding Russia's destabilizing actions in Ukraine). Sanctions list data can be updated automatically at any time.

SI PRO has maintained a successful partnership for over 10 years with Reguvis (formerly the Federal Gazette Publisher), which provides an extensive and standardized XML-format content package for sanctions list screening. Additionally, as of 2024, SI PRO Consulting is also a partner of Mendel-Verlag, which offers customized global content for sanctions list screening in XML format.

 

Legal Control

SAP GTS e4H can cover all national, international, and other regulations and agreements in the area of legal control. Each regulation is tailored to the customer’s specific needs, configured, and activated. SI PRO has years of experience in implementing trade controls and combines industry-specific expertise with proven best practices to ensure efficient and compliant checks.

In the chemical industry, regulations such as the Chemical Weapons Convention (CWC), the German Precursors Control Act (GÜG/DPC), narcotics (BTM), and the PIC Regulation are of primary importance. In the discrete manufacturing industry, regulations such as Dual Use, the Foreign Trade and Payments Ordinance (AWV), U.S. export control laws (USEAR and USECC), and U.S. re-export laws play a central role.

Additionally, new regulations like the Carbon Border Adjustment Mechanism (CBAM) and the Deforestation Regulation are gaining significance. These regulations aim to reduce CO₂ emissions and prevent illegal deforestation and will soon need to be adhered to by all companies within the EU. With SAP GTS e4H, the specific requirements of these regulations can also be automatically met.

 

Embargo Screening

In SAP GTS e4H, embargo screening is not product-specific, but instead focuses on partial and total embargoes as part of business partner control. It involves checking the country affiliations of all business partners (recipients, clients, regulators, suppliers, end customers, etc.) to ensure that no transactions occur with partners from sanctioned countries.

  • Partial Embargoes: These impose restrictions on certain trading activities with a country. SAP GTS e4H creates "country pairs" (e.g., USA–Cuba), where these restrictions apply. SAP GTS e4H automatically checks whether business partners are from countries affected by partial embargoes and ensures that only permissible transactions are conducted.
  • Total Embargoes: These prohibit all economic activities with specific countries or regions. SAP GTS identifies such countries and blocks transactions that may violate embargo regulations, regardless of the products or services involved.

The embargo screening service is often used by customers to fulfill internal compliance requirements, such as "We do not trade with Venezuela or Russia." Embargo blocks are released or confirmed by expert decisions.

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Risk Management

Preference calculation is an integral component of Risk Management in SAP GTS e4H. It enables the automatic determination of the origin of goods by applying various origin rules derived from international free trade agreements. This automation ensures that complex requirements, such as value-added thresholds, tariff classification changes, or specific processing steps, are accurately and efficiently considered. By precisely calculating the preferential origin, companies can leverage reduced tariff rates or exemptions, thereby achieving significant cost savings in global trade. At the same time, the risk of errors or non-compliance is minimized, as the calculations always adhere to current legal regulations. With SAP GTS e4H, preference calculation becomes an indispensable tool that helps businesses streamline their trade processes while ensuring compliance and maintaining competitiveness.

The preference calculation in SAP GTS e4H offers a variety of features that allow companies to effectively verify origin rules and optimize the benefits of free trade agreements. The preference calculation includes the following functions:

Determination of Preferential Origin: SAP GTS analyzes production and procurement data to determine whether products meet the origin rules of specific trade agreements.

Workflow: An automated process is provided for requesting and managing supplier declarations, including dunning processes and issuing customer supplier declarations.

Automation: Preference calculation automates the verification of origin rules, reducing manual effort and errors. Origin rules for all 44 currently relevant EU agreements, for instance, can be obtained as XML content from our partners Mendel-Verlag and Reguvis. They continuously monitor changes to preference agreements and update their content promptly. With SI PRO's upload tool, delta lists of changed preference agreements can be automatically imported into GTS e4H.

Integration: It integrates with existing SAP ERP systems to directly utilize material master data, bills of materials, and calculation data. With the Identity-Based Preference Processing (IBPP) feature, batch-based preference calculation is also possible. IBPP is an enhancement of SAP Global Trade Services (GTS) that enables the determination of the preference status of materials at the identifier level, such as batches. This offers several advantages over traditional product-level preference calculation:

 

Advantages of IBPP:

  • More Accurate Preference Calculation: Determining the preference status at the identifier level eliminates the "worst-case principle," where it is assumed that the entire product is not preference-eligible if individual components cannot be proven as preference-eligible. Instead, the actual preference status of each batch can be determined, leading to more accurate results.
  • Cost Savings: More precise preference calculation enables companies to make better use of tariff benefits, leading to reduced import duties and cost savings.
  • Competitive Advantages: Accurately determining the preference status allows companies to offer preference-eligible goods to their customers, resulting in higher profit margins or more competitive pricing.

 

Availability of IBPP:

  • As an Add-on: IBPP was initially offered as an add-on for SAP GTS 11.0.
  • Integrated into SAP GTS e4H: In SAP GTS Edition for HANA 2023, IBPP functionalities are integrated by default and available to all users.

 

Traceability and Documentation: The system generates certificates of origin and other documentation required for export or customs authorities. Since customs authorities can review specific preference calculations at any time, SAP GTS helps companies quickly, comprehensively, and securely provide the necessary documentation during an audit. This ensures smooth collaboration with authorities and minimizes the risk of delays or penalties.

Support for Multiple Trade Agreements: In GTS e4H, any number of free trade agreements can be configured, such as CETA (Comprehensive Economic and Trade Agreement with Canada) or the EU-Japan EPA (Economic Partnership Agreement). SAP GTS performs an automated check during the processing of a product or order to determine whether the product falls under at least one trade agreement and indicates applicable preferential benefits. Products that do not meet the criteria of the respective agreement are automatically marked by the system as non-preferential.

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Customs Management

Customs management in SAP GTS e4H enables the automation and standardization of all relevant customs processing activities, such as classification, import and export declarations, tariff number and customs warehouse management. SAP GTS supports communication with customs authorities, reducing lead times and significantly lowering transaction costs. 

Integration with the electronic customs system ATLAS is automated via specialized interfaces. To do so, our partner SEEBURGER has developed the Business Integration Suite (BIS) for this purpose. Missing master data can be supplemented by condition records as data proposals, ensuring accuracy and completeness. 

All relevant goods movements are recorded in worklists, which progress through each import or export declaration processing step utilizing a status network. 

The customs area in SAP GTS comprises three main elements: master data management, such as product classification; the operational customs procedures area, including import and export processing; and permit management.

Classification:
In SAP GTS e4H, customs tariff numbers are used with varying digit lengths, depending on the country and specific requirements.  The Harmonized System (HS) nomenclature serves as the foundation for most global customs tariffs, employing 6-digit codes. Many countries and regions extend this standard with additional digits to enable more detailed classifications.

  • 6-digit codes: These correspond to the international Harmonized System (HS), which forms the basis for worldwide product classification.
  • 8-digit codes: In the European Union, the HS is extended by two digits to form the Combined Nomenclature (CN), providing more detailed product groups.
  • 10-digit codes: The EU uses the TARIC code, which further extends the 8-digit CN by two digits to represent specific measures such as duties or trade restrictions.
  • 11-digit codes: Some countries, such as Germany, append an additional digit to the TARIC code to accommodate national characteristics or specific statistical requirements.

These customs tariff numbers can be imported as content into SAP GTS to ensure accurate classification of products and compliance with national and international regulations. Our partners, Mendel-Verlag and Reguvis, offer the appropriate customs tariff content in XML format.

Customs Procedures:
SAP Global Trade Services (GTS) supports various customs procedures and integrates seamlessly with electronic customs systems such as ATLAS (Automated Tariff and Local Customs Clearance System) in Germany. This facilitates efficient, compliant handling of international trade processes and direct communication with customs authorities. Key supported customs procedures include:

  • Import procedures: Management of import processes, including creating and submitting import declarations via ATLAS and calculating and remitting duties and taxes.
  • Export procedures: Support for export processes, such as creating export declarations, monitoring permits, and complying with export control regulations, with automated transmission to ATLAS.
  • Transit procedures: Processing transit procedures like the Common Transit Procedure, allowing the movement of goods under customs supervision between customs territories, coordinated via ATLAS.
  • Customs warehouse procedures: Management of goods in customs warehouses without immediate duty or tax obligations, with comprehensive documentation and automated reporting to ATLAS.
  • Inward processing: Processing or handling non-Union goods within the EU, where import duties are suspended or waived. ATLAS facilitates reporting and tracking.
  • Outward processing: Exporting Union goods for processing outside the EU and re-importing them with duty reductions, supported by ATLAS-based processes.
  • Temporary admission: Use of non-Union goods within the EU for specific purposes, with subsequent re-export, managed via ATLAS automation.

Permits:
SAP GTS e4H provides robust capabilities for managing customs permits, ensuring compliance with regulatory requirements such as Authorized Economic Operator (AEO) status. Permits, such as simplified procedure usage or AEO authorization, play a crucial role in optimizing customs processes. SAP GTS helps businesses integrate permits directly into their workflows, reducing administrative effort and accelerating customs clearance. SAP GTS also monitors compliance with conditions associated with permits and provides functionalities for deadline management and documentation. Companies with AEO status benefit from reduced inspection frequencies, simplified access to customs procedures, and enhanced trust with customs authorities. SAP GTS helps companies meet the necessary AEO requirements, such as seamless documentation, traceability of goods movements, and adherence to security-relevant standards. Centralized management of permits and AEO-related requirements in SAP GTS ensures transparency, minimizes risks, and increases efficiency in international trade.

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Electronic Reporting

Electronic Compliance Reporting (ECR) in SAP Global Trade Services (GTS) supports companies in meeting their statutory reporting obligations for intra-community trade within the European Union. It enables the automated creation and submission of statistical reports, such as Intrastat declarations, to the respective authorities of EU member states. By integrating ECR into SAP GTS, companies can ensure that their reports comply with the specific data formats required by national statistical authorities. This reduces manual effort and minimizes potential errors during data collection and transmission.

Electronic Reporting (ER) in SAP Global Trade Services (GTS) offers a wide range of features. Here are its main applications and functionalities:

 

Intrastat Reporting

  • Automated creation of Intrastat reports for intra-community trade within the EU.
  • Integration of movement data (goods movements, trade volumes) directly from SAP logistics modules.
  • Electronic submission to the respective authorities in the required national formats.

Export Control Reporting

  • Preparation of reports to ensure compliance with export control regulations, e.g., license notifications.
  • Submission of data to authorities such as BAFA (Federal Office for Economic Affairs and Export Control) in Germany via the ELAN-K2 interface.

Customs Declaration

  • Preparation and electronic submission of customs declarations for imports and exports.
  • Support for electronic customs procedures, such as ATLAS in Germany, CHIEF in the United Kingdom, or PASSAR in Switzerland.

Compliance Documentation 

  • Creation and provision of documentation to meet regulatory requirements, such as AEO (Authorized Economic Operator) standards.
  • Evidence tracking and audit trails for external inspections.

SI PRO EHS/GTS Connector

The SI PRO EHS/GTS Connector is a powerful tool designed to seamlessly integrate SAP Environmental Health and Safety (SAP EHS) solutions with SAP Global Trade Services (SAP GTS).

The SI PRO EHS/GTS Connector is particularly valuable for the chemical industry, which faces strict regulatory demands related to environmental and safety standards, as well as international trade requirements. Given the complexity of chemical industry operations, seamless connectivity between SAP EHS and SAP GTS is essential for maintaining compliance and optimizing process efficiency. The connector ensures that critical data flows smoothly between these systems, enabling businesses to meet stringent regulations while streamlining their operations.

Specific Benefits for the Chemical Industry

Compliance with Legal Requirements

  • The chemical industry operates under strict oversight by authorities such as the REACH Regulation (Registration, Evaluation, Authorization, and Restriction of Chemicals) and international transport regulations for hazardous goods (e.g., ADR, IMDG, IATA).
  • The connector ensures that hazardous substance classifications, safety data sheets, and other EHS-relevant information are automatically transferred to SAP GTS, facilitating legally compliant trade processes.

Hazardous Goods Management in International Trade

  • Many chemical products are classified as hazardous goods and are subject to specific transport and trade regulations.
  • The SI PRO Connector directly integrates hazardous goods information (e.g., UN numbers, packaging regulations) into export, customs, and compliance processes, ensuring adherence to regulations such as the GHS (Globally Harmonized System of Classification and Labelling of Chemicals).

Automation and Error Prevention

  • In the chemical industry, it is critical to use accurate product data, such as chemical compositions or classifications, in trade processes. Manual data transfers are prone to errors and time-consuming.
  • The connector automates the transfer of relevant data between SAP EHS and SAP GTS, minimizing errors and ensuring data consistency.

Compliance with Export Controls and Sanctions List Screening

  • Chemical substances and products may fall under export control regulations or embargoes due to their potential use for military purposes (e.g., dual-use goods).
  • The connector ensures that all safety- and trade-relevant information is integrated into SAP GTS export control processes, preventing violations of regulations.

Efficient Customs Processing

  • Chemical products often have complex customs classifications.
  • The connector ensures that the corresponding data (e.g., customs tariff numbers, hazardous goods labels) are incorporated into customs processing, enabling fast and compliant handling.

Cost Savings

  • The automation of compliance processes reduces fines, administrative delays and associated costs.
  • More efficient processes and automation save time and resources.

Why Is This Particularly Relevant for the Chemical Industry?

  • Regulatory Pressure: Few industries are as heavily regulated as the chemical industry.
  • Hazardous Goods Handling: Proper handling of hazardous goods is essential for safety and compliance.
  • Global Trade: Chemical products are often traded globally, requiring compliance with complex international trade regulations.
  • High Risks: Non-compliance can lead to significant  financial penalties and damage to a company's reputation.

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AI Integration – Artificial Intelligence (AI) in SAP GTS

In collaboration with our partner Traide AI (www.traide.ai), we have integrated their powerful generative AI into SAP GTS through an API interface. This innovative solution significantly enhances automation in the customs classification process while reducing errors associated with the manual selection of customs tariff numbers.

The AI analyzes product data, automatically suggests appropriate tariff numbers, and continuously learns from existing classifications to improve its accuracy over time. By integrating this solution, companies can not only increase process efficiency but also significantly reduce the time and reliance on manual labor. The risk of classification errors is minimized, leading to smoother customs processes and improved compliance.

The combination of Traide AI's generative AI with the robust capabilities of SAP GTS represents a crucial step towards future-oriented and automated customs classification.

Frequently Asked Questions (FAQs)

What is SAP GTS and what is it used for?

SAP Global Trade Services (SAP GTS) is a comprehensive software solution designed to help companies comply with international trade regulations. It supports the automation and optimization of customs clearance, compliance with export control regulations, and the management of global trade processes.

Which companies benefit most from SAP GTS?

SAP GTS is particularly beneficial for companies involved in international trade that must comply with numerous customs and export regulations. Firms with complex supply chains or high trade volumes especially benefit from the automation and compliance features SAP GTS offers.

How does an SAP GTS implementation project proceed, and how long does it take?

The implementation of SAP GTS follows several phases (SAP Activate Methodology):

  • Analysis Phase (Discover Phase): Detailed investigation of requirements and current processes.
  • Planning Phase (Prepare Phase): Definition of the project scope and configuration specifications.
  • Configuration Phase (Explore Phase): Customization of the system to meet company-specific requirements.
  • Testing Phase (Deploy Phase): Conducting tests to verify configurations and functionality.
  • Go-Live (Run Phase): The system is transferred to the productive environment, followed by post-go-live support.

The duration of an SAP GTS implementation project depends on the complexity and individual company requirements. Typically, such a project takes between 6 and 12 months.

What areas does SAP GTS cover?

SAP GTS covers several key areas, including:

  • Customs Clearance: Automation of import and export operations.
  • Export Control: Compliance with trade regulations and sanctions list screening.
  • Trade Agreements: Optimization of customs duties through free trade agreements.
  • Risk Management: Monitoring and minimizing risks in international trade.

What benefits does SAP GTS offer companies in international trade?

SAP GTS helps companies efficiently comply with international trade regulations by automating compliance checks and managing customs documents. This minimizes risks such as delays or fines. Additionally, SAP GTS improves supply chain transparency and facilitates the use of trade agreements to reduce customs costs. Long-term benefits include optimized efficiency, cost savings, and a reduction in trade risks.

Can SAP GTS be integrated into existing ERP systems?

Yes, SAP GTS can be seamlessly integrated into existing ERP systems such as SAP ERP and SAP S/4HANA. This integration allows data to flow smoothly between different modules, leading to better transparency and control of trade processes.

What training or further education is recommended for employees after implementing SAP GTS?

After implementing SAP GTS, it is essential to provide employees with comprehensive training to fully leverage the software’s potential. SI PRO GmbH offers tailored training sessions focused on the specific needs of the company and day-to-day operational activities, such as managing customs processes and ensuring export compliance. Continuous education is also recommended to keep employees updated on regulatory changes or the optimal use of free trade agreements. SI PRO GmbH also provides extended training modules and hands-on workshops for long-term support.

Is SAP GTS suitable for small and medium-sized enterprises (SMEs)?

Yes, SAP GTS can be adapted to the needs of small and medium-sized enterprises. It offers scalable features that help SMEs automate their international trade processes and meet compliance requirements. Specialized implementation approaches are available for smaller companies to minimize efforts while ensuring compliance with legal regulations.

What prerequisites must be met to successfully implement SAP GTS?

To successfully implement SAP GTS, it is essential for a company to have a solid IT infrastructure, preferably with existing SAP systems such as SAP ERP or SAP S/4HANA. Additionally, clear processes for customs clearance and trade compliance should be defined to ensure a smooth implementation. The involvement of internal experts, such as customs and compliance teams, is also crucial.

What customs procedures can be managed with SAP GTS?

SAP GTS supports a variety of customs procedures relevant to international trade, including:

  • Duty-Free Transactions: Handling and processing imports and exports without customs duties.
  • Processing Procedures (Active and Passive Processing): Managing goods to be processed abroad or returned after processing.
  • Customs Warehousing: Managing goods placed in a customs warehouse before final import or export.
  • Transit Procedures: Handling goods movement under customs supervision within the customs area.
  • Simplified Customs Procedures: Supporting companies in using simplified customs clearances to save time and resources.

What implementation methods are available for SAP GTS?

Three common implementation methods are available for SAP GTS:

  • Greenfield: SAP GTS is implemented from scratch, offering maximum flexibility in process design.
  • Brownfield: This method allows migration of existing systems to SAP GTS while retaining existing data and processes.
  • Bluefield: A hybrid approach where companies adopt some existing processes while designing new ones.

How is requirements gathering conducted for SAP GTS?

Requirements gathering for SAP GTS involves capturing the company’s business requirements. The recorded processes are visualized using BPMN (Business Process Model and Notation) to structure business processes. SAP Signavio supports modeling and optimizing these processes to develop a tailored solution.

How is an agile project organization conducted for SAP GTS?

Agile project organization enables a flexible and iterative approach to SAP GTS implementation. DevOps supports this process using agile tools such as task management and project boards to organize progress into sprints. DevOps also promotes continuous feedback, automated testing, and transparent communication among project teams.

In DevOps, boards and associated activities are central elements of project management. This enables teams to plan, track, and organize work. Here is an overview of the available boards and associated activities:

  • Boards:
    • Kanban Boards
    • Scrum Boards
    • Backlog Boards
  • Work Item Types:
    • Epics: Large business functions or projects.
    • Features: Components of an epic that describe specific functionalities.
    • User Stories: Requirements from an end user’s perspective.
    • Tasks: Smaller units that are part of a user story or feature.
    • Bugs: Errors or issues that need to be resolved.

How can SAP GTS and workflows be efficiently linked?

The linking of SAP GTS with workflows is achieved via the SAP Business Technology Platform (BTP), which provides flexible and scalable tools for process automation. With SAP Workflow Management within the BTP, customized workflows can be created to automate processes such as customs procedures or export controls. These workflows can be flexibly adapted to business requirements.

How are User Acceptance Tests (UAT) conducted for SAP GTS?

User Acceptance Tests (UAT) verify the functionality of SAP GTS in a real-world environment to ensure it meets the requirements. SI PRO GmbH provides pre-configured templates tailored to common business processes. In collaboration with clients, customized test scenarios can also be developed to address specific requirements.

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News and Events

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SI PRO as a Partner at the Chem-Academy Conference “Product Safety in the Chemical Industry”

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