Community Goods vs. Non-Community Goods in SAP GTS
In the context of SAP Global Trade Services (SAP GTS) and European Union (EU) customs regulations, goods are classified as Community Goods or Non-Community Goods, affecting customs handling and compliance processes.
Community Goods
Definition:
Community Goods refer to goods that are in free circulation within the EU, meaning they are not subject to customs duties or import restrictions within EU member states.
Criteria:
- Goods wholly obtained or produced in the EU.
- Goods imported into the EU from non-EU countries, with customs duties and import VAT fully paid.
- Goods produced in the EU using imported raw materials, are granted Union Status after duty-paid processing.
SAP GTS Perspective:
- Classified as Union Status in customs documentation.
- No customs clearance is required for transport within the EU.
- No import duties within the EU, streamlining trade.
- Managed under standard intra-EU trade compliance rather than import/export procedures.
Non-Community Goods
Definition:
Non-community goods are not in free circulation within the EU, remaining under customs control until clearance is completed.
Criteria:
- Goods imported into the EU where customs duties, VAT, or other import formalities are pending.
- Goods held in customs warehouses, temporary storage, or under transit procedures.
- Goods in Free Trade Zones or Bonded Warehouses awaiting clearance.
SAP GTS Perspective:
- Classified as Non-Union Status in customs processes.
- Require customs declaration (ATLAS, EMCS, or transit documents) before use in the EU.
- Managed under special customs procedures, such as inward processing or bonded storage.
- Compliance with EU customs regulations includes duty deferment, re-export, or final importation.
Key Differences in SAP GTS between Community Goods and Non-Community Goods
| Aspect | Community Goods | Non-Community Goods |
|---|---|---|
| Customs Status | Union Status (Free Circulation) | Non-Union Status (Not Cleared) |
| Duties & Taxes | Already paid or not applicable | Not yet paid; customs clearance required |
| Movement Within EU | No customs formalities | Requires customs control |
| Storage & Handling | No restrictions within the EU | Subject to special customs procedures (e.g., warehousing, transit) |
| SAP GTS Processing | Standard trade compliance | Requires customs declarations and tracking |
Conclusion
In SAP GTS, distinguishing between Community and Non-Community Goods ensures proper customs processing, duty management, and compliance tracking. Community Goods move freely within the EU, while Non-Community Goods require clearance before entering free circulation.
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