What is SAP GTS?
SAP GTS stands for ‘Global Trade Services. As the name indicates, Global Trade Services refer to Services related to Global Trade. We all know what Global Trade is i.e. when companies sell their product to the International market or when companies procure something from the International Market, Global trade takes place. In doing so, they have to deal with international trade laws and regulations which they wouldn’t have to deal with when they sell or purchase domestically.
For example, if our company wants to sell its product to a customer located in some other country, it has to make sure they are selling their products to a country which should not be under blocked countries declared by the UN, they need to make sure they are not selling their products to a customer (Individual/Entities) who are banned by the Govt. agencies, they need to make sure it has the requisite Licenses from the appropriate Licensing authorities to do so. After it makes sure above things, they have to declare shipments to the Customs authorities on the Export and Import side of the transactions.
For all the above challenges, SAP GTS is the answer. SAP GTS is the ERP-based standalone system which is the advanced version of Foreign Trade-Export & Import. It helps companies to automate their trade processes. It minimizes the risk of non-Compliance. It helps companies meet regulatory compliance needs. It allows for a smooth customs clearance process including direct electronic communication with the Customs Authorities. With the help of SAP GTS, we can also mitigate financial risks.
SAP GTS Modules
SAP GTS includes three main modules or components to meet the above objects.
- Compliance Management
- Customs Management
- Risk Management
These modules comprise of different Services-
|Compliance Management||Customs Management||Risk Management|
|Embargo Check||Product Classification||Preference Management|
|Sanctioned Party List Screening||Export Process||Restitution|
|Legal Control- Export & Import||Import Process||Letter of Credit|
|Special Business Procedures|
Compliance Management SAP GTS:
Compliance management is the area that makes sure we are compliant with our business. If we are following the rules & regulations of Customs Authorities, we are compliant. Boycott list check ( Sanctioned Party List Screening), Embargo check (List of blocked countries declared by UN)as well as import and export control area ( License check) of central importance in this context. Checking and screening processes can be seamlessly integrated into existing systems, helping to minimize risk, penalties, and fines. Embargo check, Sanctioned Party-list screening, and Legal-control check is part of this module
Customs Management of SAP GTS:
Customs Management module ensures the efficient handling of all customs relevant processes. It enables companies to direct electronics communication ( Self filing/e-filing) with the customs authorities. It helps increase the overall velocity of the company’s supply chain by eliminating a slower paper-based process. It consists of Product classification, Export Process, Import Process, and some special Business Procedures like Customs Warehouse, Inward Process Relief, Outward process relief, FTZ, etc.
Risk Management SAP GTS:
The Risk Management module enables trade Processes that deal with financial risk to our company. This module contains Preference Management, Restitution, and Letter of the credit process.
Author By Vindhyanchal Tiwari Email: [email protected] Contact Number: +91 9964793768