SAP Customs Management Purpose SAP Customs Management supports cooperation with the customs authorities in the following primary areas: •
Transit/presentation
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Customs processing for imports and exports
• Classification Document printing Since its main focus is the implementation of electronic transit and customs procedures, SAP Customs Management provides functions for processing imports and exports as well as communication and printing features. SAP Customs Management supports the following country-specific, IT-supported customs procedures: •
The European Union transit procedure “New Computerized Transit System” (NCTS)
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The electronic clearance procedure of the Swiss Customs Administration, Transit/Export in Switzerland (ZM90)
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The “Automated Tariff and Local Customs Processing System of the German Customs Administration“ (ATLAS)
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The customs processing system of the Dutch Customs Administration (Sagitta)
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The American IT procedure “Automated Export System” (AES)
• The Australian IT procedure “Integrated Cargo System” (ICS) The document printing facility enables you to print the import and export documents that you need, and in Classification, you can assign the appropriate classification numbers to imported and exported materials.
Prerequisites You have configured SAP Customs Management according to the information provided in the Business Scenario Configuration Guide for SAP Customs Management in the SAP Service Marketplace atservice.sap.com/instguides.
Process Flow Transit/Presentation In international trade, goods do not necessarily have to be processed at the border customs office, but instead can be processed later on when they reach their destination within a country. The transit procedure enables the customs authorities to identify and monitor the transit of the goods. SAP Customs Management allows you to participate in the EU’s New Computerized Transit System (NCTS) for handling all incoming and outgoing transit procedures. In this case, your transit must be based on the Community transit procedures T1, T2, and T2F and carried out using the EU’s Single Administrative Document (SAD). SAP Customs Management complies with the legal requirements for communicating with the NCTS, thus connecting your enterprise to the customs authorities of the EU member states and the EFTA countries (Norway, Switzerland, and Iceland). As an authorized consignor, you can open the transit procedure by sending your transit declaration to the relevant customs authorities with SAP Customs Management. The transit documents are sent back to you in the same way, and you can then pass them on to the transport company. At the same time, the office of exit informs the office of destination about the expected arrival of goods. As an authorized consignee, you can receive goods in the transit procedure and you can discharge the transit procedure with SAP Customs Management. You notify the office of entry that the goods have arrived by entering the Movement Reference Number (MRN) in the report of arrival, and the customs
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office then grants you permission to unload the goods. You can now unload the goods. When you are unloading the goods, you check the goods and their seals, and enter the results of this check in an unloading comment, which you send to the customs authorities. In response, the customs authorities send you a safekeeping notification and notice of the holding period. Your goods have now been presented. During the holding period, details of which are contained in the safekeeping notification, you can opt to submit a summarized declaration using SAP Customs Management. In this case also, you can establish direct electronic communications with the customs authorities. When you open a customs procedure, you send a notification of completion (sumD) to the customs authorities, which they then also send back to you. This closes the summarized declaration.
Customs Processing SAP Customs Management enables you to handle customs processing for imports and exports electronically and in accordance with the relevant legislation. The standardized means of communication provided by SAP Customs Management makes customs processing faster and simpler, provided that computerized customs procedures are used. SAP Customs Management allows you to process your paper-based customs declarations electronically. When you are exporting goods, you can submit your customs declaration to the customs authorities, and use SAP Customs Management to print out the necessary customs documents. When you are importing goods, you can submit a summarized declaration and initiate the release of the goods for free circulation. Once this procedure has been completed, the imported goods are yours. You can choose between the following normal procedures and simplified procedures: •
Single customs declaration
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Local clearance procedure (LCP)
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Advance local clearance procedure
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Simplified customs declaration
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Advance simplified customs declaration
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Supplementary customs declaration
• AWB (single customs declaration, air cargo) In addition to the various procedures, you can also use the duty calculation function to calculate customs duties at the item level in advance.
Classification Many numbering systems in foreign trade are based on customs nomenclatures. As a rule, every numbering system has a set structure that can be stored as a numbering scheme in the system, and in this way, you can manage your export control classification numbers (ECCNs), international numbering systems, commodity codes, import code numbers, harmonized system numbers (HS numbers), and common agricultural policy numbers (CAP numbers). For classification purposes, the numbers have to be assigned to imported and exported goods. To streamline this process and provide you with decision-making support, the classification function in SAP Customs Management provides a keyword search and a phonetic search for the appropriate classification. You can use SAP Customs Management to upload customs tariff numbers from data providers, such as the European Customs Tariff and the Integrated Tariff of the Community (TARIC).
Document Printing •
You can use the document printing facility in SAP Customs Management to print regulatorycompliant documents from the EU transit jurisdiction and the USA export/goods origin jurisdiction. The system automatically generates the following documents:
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US: Shipper’s Export Declaration (CF 7525)
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US: Letter of Instructions
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US: Inward Cargo Manifest (CF 7533)
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US: Entry/Immediate Summary (CF 3461)
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US: Entry Summary (CF 7501)
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US: Certificate of Origin
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NAFTA: Certificate of Origin (CF 434)
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Global: Export Packing List
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Global: EUR 1 Certificate of Origin
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Global: Long-Term Vendor Declaration
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EU: Movement Certificate A.TR.1
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EU: Certificate of Origin
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EU: Control Document T5 (CAP Products)
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EU: Information Sheet INF 4 (for Simplification in Preference Trade)
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EU: Single Administrative Document EX/EU/COM
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EU: Single Administrative Document T1/T2 and Loading List
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EU: NCTS Unloading Permission
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EU: NCTS Unloading Rejection
• EU: Vendor Declaration Request SAP Customs Management can retrieve the appropriate foreign trade documents for each business transaction. The system automatically determines the information for a document, using a central print data retrieval function with a standardized interface. This reduces the time required for the communication process with the customs authorities and substantially improves data quality.
SAP Compliance Management Purpose SAP Compliance Management supports international trade compliance issues in three primary areas: •
Sanctioned party list (SPL) screening
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Export legal control (including embargo checking and license management)
• Import legal control (including embargo checking and license management) By streamlining the extended supply chain, SAP Compliance Management automates the complicated regulatory compliance process, which is a crucial factor for successful global trade activities. This minimizes the risk of penalties and fines, maximizes your company’s return on global sourcing and selling initiatives, and increases your overall competitiveness by improving customer satisfaction.
Prerequisites You have configured SAP Compliance Management according to the information given in the Business Scenario Configuration Guide for SAP Compliance Management in SAP Service Marketplace atwww.service.sap.com/instguides → SAP Components → SAP Global Trade Services → Using SAP GTS 7.0.
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Process Flow Sanctioned Party List Screening
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A business document (for example inquiry, quotation, order, or outbound delivery) is created in the feeder system. This automatically triggers sanctioned party list (SPL) screening in the SAP Global Trade Services (SAP GTS) system. Based on the rules that have been set during implementation, the address data in the business documents are checked against the available sanctioned party lists in the SAP GTS system. These lists (in XML format) are supplied by third party providers and can be uploaded to the SAP GTSsystem. You can also create your own lists. Using the SAP GTS monitoring features, you can keep track of all checked addresses. An employee with the appropriate authorizations can release blocked documents for further processing using the monitoring capabilities. Periodic checks can be set up in order to check the current available master data. You can configure the sequence that is used for checking the master data. It makes sense to set up the system so that all the master data is checked automatically after every update of the sanctioned party lists. All activities are logged in the area of sanctioned party list screening and can be archived for legal purposes with the SPL audit trail function.
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Export/Import Control and Embargo Checking
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A business document is created or changed in the feeder system. This automatically triggers export/import control the SAP GTS system. SAP GTS checks if a license is required to export or import a product. These checks are performed based on the settings in the customizing for SAP GTS. 3. If a license is required, the system assigns the appropriate license to the business transaction.
A business transaction is automatically blocked if the applicable combination of export list number and country of destination is not permitted. Import and export control is based on a combination of the following parameters: a. Export list number b. Country of destination c. Country groups d. Single products e. Special customers f. Quantities g. Values
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The license itself contains information about permitted exports or imports in terms of quantities and/or values. When the business document is posted in the feeder system, SAP GTS depreciates the values or quantities of the licenses. 5. In addition, SAP GTS performs an embargo check for the specific business transaction. The check is based on the combination of the country of departure and the country of destination (or groups of countries). If the system detects an embargo situation, the document is blocked from further processing. 6. Using SAP GTS reporting capabilities, you can keep track of all blocked documents and release options where applicable.
Monitoring With SAP Compliance Management, you can monitor all your business transactions across the entire process chain (for example, by selecting blocked documents, displaying license assignments, and so on). This means that you obtain an overview of the entire process, providing you with total control and ensuring absolute transparency.
SAP Risk Management Purpose SAP Risk Management enables you to mitigate financial risks while trading globally and can be fully integrated into your standard export processes using the following two services: •
Preference Processing
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Restitution Handling
SAP Risk Management - Preference Processing Purpose SAP Risk Management - Preference Processing helps exporters to fulfill all the legal requirements for customs tariff preferences and to show that their goods are relevant for preference, thus enabling their customers to import these goods either duty free or at a reduced rate of import duty. By providing evidence of eligibility for preferential treatment, exporters gain significant competitive advantage. SAP Risk Management - Preference Processing offers the following options for preference processing: •
Management of vendor-based vendor declarations and of vendor declarations for customer’s purposes
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Preference determination based on preference agreements and models for standardized products with static BOMS or for order-related BOMs for configurable products
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Provision of a statement about the preference eligibility of goods based on preference determination
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Printing of preference documents
Prerequisites You have configured SAP Risk Management - Preference Processing according to the information given in the Business Scenario Configuration Guide for SAP Risk Management - Preference Processing on SAP Service Marketplace at service.sap.com/instguides.
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The feeder system transmits information on vendor-product relationships to SAP Risk Management - Preference Processing. SAP GTS creates a worklist with this information so that it can be used for further processing. If you need to consider goods receipts from vendors that do not originate from your preference zone when you aggregate vendor declarations, you can indicate them as not relevant for request but relevant for aggregation. From the worklist, the system selects the products that do not have vendor declarations. It also selects the associated vendor master data. The system creates requests for vendor declarations for the selected products based on the associated vendor data. Using various media, such as Smart Forms, the system creates requests for vendor declarations, which you can send to the vendors. Once you receive vendor declarations from your vendors, you have to enter these in SAP GTS. The system determines whether a valid vendor declaration exists for a product and aggregates valid, invalid, and missing vendor declarations. The system determines a threshold value by performing preference determination. During this process, it combines the statements for every material based on the rules and procedures in the preference agreement, irrespective of whether there are any valid or invalid vendor declarations. The system archives the results of the preference determination, therefore enabling you to continue monitoring them with audit trails and the Monitoring function. Whenever you create or change an order or a billing document in the feeder system, the system compares the threshold value with the ex-works price of the order or billing document. If the product is eligible for preferential treatment, the system sets the preference indicator. You can issue the vendor declaration for customer’s purposes.
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SAP Risk Management - Restitution Purpose SAP Risk Management – Restitution supports exporters in the restitution process. It helps ensure all the prerequisites for applying and receiving export restitutions are fulfilled and minimizes the risk of penalization through loss of securities or export licenses. The following requirements for restitutions are supported by SAP Risk Management – Restitution: •
License maintenance and assignment
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Security maintenance and assignment
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Manufacturer’s recipe maintenance
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Restitution rate maintenance
Implementation Considerations You have configured SAP Risk Management – Restitution according to the information given in the Business Scenario Configuration Guide: SAP Risk Management – Restitution in SAP Service Marketplace underservice.sap.com/instguides.
Restitution Component View
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A sales order and then a delivery document are created in a feeder system. The feeder system may be an SAP system or a non-SAP system. 2. A customer invoice or a pro forma invoice is created in the feeder system based on the goods that are actually delivered to the customer. 3.
The data from this invoice is transferred to SAP Risk Management - Restitution, where an export shipment document is created. 4. If an advance refund payment (ARP) is required, a security must be assigned immediately to the export shipment document rather than to the license. 5. The individual products listed in the export shipment document are all checked by the ‘Restitution’ service in SAP Risk Management against the product master data to determine whether they are restitution-relevant products or not. Restitution-relevant products include either of the following:
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a. Basic products: sugar, cereals, eggs, rice, processed products of fruit and vegetables, milk and milk products. b. Non-annex-1 products (final products): products whose ingredients include one or more of the above basic products.
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It is essential that the manufacturer’s recipes for these final products are maintained in the master data. If the product is restitution-relevant, then the ‘Restitution’ service runs a check to determine whether the product requires an export license. If there is no export license available, then an application for a license has to be made to the appropriate customs authorities. Then the new license has to be maintained in the system and a security assigned to it also. This new data from the license and the security is then assigned to the individual products in the export shipment document. If the license search shows that an export license is available, then the license is assigned to the export shipment document. The ‘Restitution’ service calculates the restitution rates for the products and multiplies the restitution rates by the quantities of the products to obtain a total expected restitution amount. The ‘Restitution’ service depreciates the export license by value or quantity. All the necessary forms are printed out and sent to the customs authorities and the export goods can be unloaded. Monitoring functions in the ‘Restitution’ service help keep track of all the papers that are necessary for the restitution process and help ensure they arrive at the appropriate customs offices on time. The restitution process is closed once all the papers have arrived and the authorities have confirmed the restitution amount. Finally, the security can be released.
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Control Foreign Trade Data in MM and SD Documents Use In this IMG activity, you can control foreign trade data. You can control this data both in materials management documents and sales and distribution documents. The following documents are relevant:
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Export: Export billing document as primary document, delivery as
Secondary document •
Import: Import purchase order as primary document, shipping
Notification as secondary document As an alternative to the import purchase order, the goods receipt document will be provided with Foreign Trade data. Notes You can use the function "Cockpit - Monitoring documents" to maintain incomplete documents.
Incompleteness Schemas for Foreign Trade Data Use In this IMG activity, you define the incompletion procedures that you want to use at header and/or item level. You assign valid foreign trade fields to each incompletion procedure. You can select a combination of the following parameters for each foreign trade field:
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Visible / Invisible
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Optional field / Required field
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Incompletion check on / off
The following four incompletion procedures would be useful:
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Incompletion procedure: Import - Header
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Incompletion procedure: Import - Item
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Incompletion procedure: Export - Header
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Incompletion procedure: Export - Item
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After having defined the incompletion procedures, you can assign the procedures by country, goods direction and document level (header/item). To do this, you select the IMG activity Foreign trade data in MM and SD documents.
Foreign Trade Data in MM and SD Documents Use In this IMG activity, you assign the relevant incompletion procedure for header and/or item data to the import and export country. You also define how the system reacts when data is incomplete. Furthermore, you define in the "consistency check" section whether the system only allows valid combinations of modes of transport and customs offices during document processing.
You define these valid combinations in the IMG activity Valid combinations: Mode of transport - Customs office.
Import Screens In Purchasing Document In this step, you set the system to propose import screens for the subsequent maintenance of purchase orders and purchasing outline agreements.
Extended Import Document Control USE& In this operation, you decide if the import data are to be maintained at material document level.
Customer Exits: Default Values For Foreign Trade Data Use You can use SAP enhancement V50EPROP to process foreign trade data (ordering as well as sales and distribution processing).
This enhancement is called by program SAPLV50E. You can use the following components:
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EXIT_SAPLV50E_001: SD documents - Header: Export header data proposal
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EXIT_SAPLV50E_002: MM documents - Header: Import header data proposal
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EXIT_SAPLV50E_003: SD documents - Item: Export item data proposal
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EXIT_SAPLV50E_004: MM documents - Item: Import item data proposal
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EXIT_SAPLV50E_005: Header data: Check completeness of data
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EXIT_SAPLV50E_006: Item data: Check completeness of data
Activities 1. Create the enhancement.
To do this, either create a new project or use an existing one. 2. Activate the project.
You cannot use the enhancement until you activate the project. Further notes In contrast to modifications, enhancements are basically release- insensitive because they are not not made in the SAP original but in a name range that is reserved for the customer.
For more information choose Utilities Every enhancement is Documentation
on the general procedure for creating enhancements, -> Online manual in the enhancement transaction. documented. To display the documentation, choose in the enhancement transaction.
Define Commodity Codes / Import Code Numbers By Country Use In this IMG activity, you define commodity codes or import code numbers. These official numbers group together materials that are similar in terms of customs. The system automatically copies the entry from the material master record to the purchasing documents (purchase order, shipping notification) and sales documents (delivery, billing document) at item level. There, you can change the proposed entry manually. Activities For each country, define commodity codes, their description and, if legally required, a special unit of measure. The country is the one to which the goods are imported (MM processing) or the one from which the goods are exported (SD processing). Note If you want to enter the import code number, which may be longer, for each country, you can flag this import code number accordingly.
In this way, the system can differentiate between commodity codes and import code numbers.)
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