Overview of Importing Goods into the EU Using SAP GTS
Importing goods into the European Union (EU) requires strict compliance with customs regulations and duty payments. SAP Global Trade Services (SAP GTS) helps businesses automate and manage import processes efficiently, ensuring compliance and smooth customs clearance. This guide provides a structured overview of handling EU imports using SAP GTS.
Step 1: Entry of Goods and Customs Supervision
When goods arrive at an EU border, they come under customs supervision and must be transported to a customs office of entry or an approved warehouse. In SAP GTS, this is managed through:
- Inbound Declaration Documents generated in SAP Feeder System ( ECC or SAP S/4HANA) and transferred to SAP GTS.
- Transit Procedure Handling if goods are moved to an inland customs office.
Actions in SAP GTS:
- Ensure the shipment is logged in SAP Feeder System.
- Verify the Customs Shipment Document in SAP GTS.
Step 2: Presentation to Customs
- Once the goods reach the designated customs location, authorities must be notified of their arrival, a process known as presentation to customs.
- Importers or their representatives must notify customs that the goods have arrived at the designated location.
Actions in SAP GTS:
- Create an import declaration in SAP GTS under Customs Management.
- Assign the entry number (MRN – Movement Reference Number) issued by customs.
Step 3: Temporary Storage (If Required)
- If the importer has not yet determined the goods’ final purpose, a Summary Declaration (SumA) must be submitted for temporary storage.
- This allows goods to remain under customs control for up to 90 days without paying duties.
Actions in SAP GTS:
- Activate Special Customs Procedures for temporary storage.
- Track goods under customs control using SAP GTS monitoring tools.
Step 4: Customs Declaration Submission
Once the intended use of the goods is confirmed either for Free circulation or another customs procedures, then a customs declaration must be submitted electronically to the relevant customs authority. SAP GTS automates this submission through interfaces like ATLAS (Germany)
Actions in SAP GTS:
- Create a customs import declaration .
- Enter required details, including:
- HS Code for classification.
- Country of Origin for tariff determination.
- Customs Value for duty calculation.
- Intended use
- Submit the declaration electronically via SAP GTS Communication with ATLAS.
Step 5: Duty Calculation and Tax Assessment
- Customs authorities assess import duties, VAT, and other applicable taxes based on the declared value and classification.
- SAP GTS automates this calculation using SAP Tax Engine and tariff master data.
- The importer must pay the required duties before goods are released unless duty deferment arrangements are in place.
Actions in SAP GTS:
- Validate duty and tax calculations in the Customs Declaration Document.
- Apply Preferential Treatment Management if applicable to reduce tariffs.
- Initiate duty and tax payments through SAP’s financial integration.
Step 6: Customs Clearance and Goods Release
Once the necessary duties and taxes are settled, customs approves the release of goods, allowing them to enter free circulation within the EU.
Actions in SAP GTS:
- Receive a customs clearance message (IE529) from ATLAS.
- Update the import status to “Cleared” in the SAP GTS Customs Document.
- Integrate the release status with SAP S/4HANA inventory for goods movement.
Step 7: Post-Clearance Compliance and Record Keeping
- After customs clearance, Importers must keep records of import declarations for at least three years for audit purposes.
- If any errors are identified, customs may require adjustments or corrections to the declaration.
Actions in SAP GTS:
- Archive customs declarations using SAP Information Lifecycle Management (ILM).
- Use GTS Reporting & Analytics for compliance tracking.
- Conduct automated reconciliation for customs payments.
Optimizing Import Costs with Special Customs Procedures
SAP GTS provides additional options to optimize import costs by leveraging special customs procedures:
- Customs Warehousing – Store goods without paying import duties until released.
- Inward Processing – Import raw materials for manufacturing and re-export without duty payments.
- Temporary Admission – Bring goods into the EU for short-term use without full import duties.
Conclusion
SAP GTS simplifies the EU import process, ensuring compliance with customs regulations while automating declarations, duty calculations, and goods tracking. Following these structured steps helps businesses streamline operations and manage costs effectively.
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