Audit.Tax.Consulting.Corporate Finance.

Governance, Risk and Compliance

SAP global trade services
Making it work for you
Deloitte is SAPs global
preferred partner in
Governance, Risk &
Compliance. We have
extensive experience of
working with clients across
all areas of customs
compliance and planning.
Companies conducting business across
borders face new challenges driven by
increased economic globalisation and
greater levels of regulation. About 30%
of world trade crosses borders and there is
10% yearly growth in global trade volume.
Anti-terrorism measures and the fall off in
paper-based communication are having far
reaching effects on the requirements for
systems that model foreign trade processes.
Since 9/11, more and more stringent
regulations are being introduced, such as
the Customs and Trade Partnership against
Terrorism in the US and Authorised
Economic Operator (AEO) in the EU, license
requirements for dual-use products and
export control procedures.
The AEO status is an accreditation regime to
prove customs and supply chain compliance
as of January 1, 2008. The impact of not
having AEO status will include more
customs inspections, longer lead times,
higher demurrage charges, etc. leading to,
in effect, a twin track clearance system with
customs declaring their intention to focus
consignment inspections on traders who are
not AEO certified, whilst AEO traders are
likely to be fast tracked.
The EU and many other countries are
introducing an eCustoms environment,
replacing the paper trail with the electronic
customs clearance process, inter-connecting
the Customs authorities internationally to
combat fraud and increase security levels in
the international movement of goods.
Addressing the new regulatory environment
and the automation of customs processes is
a duty and not a virtue, especially because
of the supply chain impact and the financial
penalties for non-compliance.
SAPs Global Trade Services (GTS) enables
you to:
Ensure regulatory trade compliance and
AEO accreditation to maintain a smooth
supply chain and avoid fines for non-
compliance.
Lower the cost of compliance and reduce
the risk profile by establishing a corporate-
wide standard for trade processes across
SAP and non-SAP systems.
Expedite customs clearance reduce cycle
times and ensure faster, more predictable
delivery to customers by minimising
delays at national borders.
Automate the management of customs
procedures such as customs warehousing
defer or eliminate duty payments.
Manage and maintain a correct product
classification.
Automation of regional trade agreement
processes: Trade Preference Processing
capabilities to utilise benefits of EU Trade
Agreements and NAFTA.
Some things you need to know
The European Commission approved
new regulatory changes (October
2006).
The authorised Economic Operator
accreditation and fast clearance track
will take effect on 01/01/08.
A Community-wide Risk Profiling
Database will score operator
compliance as from 01/01/09.
The paperless customs environment
for all imports and exports is being
introduced in all Member States and
links in all Customs authorities.
The pre-arrival and pre-departure
notification procedures will require
the filing of consignment data before
the goods leave the port of
departure as from 01/07/09
(24 hours for sea freight).
Typical findings and opportunities
An average FTSE 500 company will declare
between 500 to 2,000 transactions per
month with UK Customs, with approximately
50 technical data fields to complete per
transaction. UK HMRC reports (JCCC Paper
(05) 35) reveal an error rate of over 20%.
The SAP-GTS application enables businesses
to automate and streamline complex import
and export processes to ensure full regulatory
compliance, expedite customs clearance,
mitigate the financial risk of global
transactions and take full advantage of
international trade agreements. Full visibility
of the supply chain allows organisation to
move from landed cost to a delivered
profit basis.
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Member of
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The most important key benefits of
SAP-GTS include:
Higher accuracy rate of data filed with
Customs or Customs Border Protection
Avoidance of penalties and legal fees.
Avoidance of supplying to restricted
parties, into embargoed countries, tariff
violations, etc.
A reduction of processing costs and fees.
Reduce process time in screening and
licensing.
Reduce brokers fees.
Reduce customer service time.
A reduction in shipping time
Decrease inventory from reduced
in-transit time and variability.
Reduce lost orders.
Minimum impact to supply chain
lead times.
Improved IT environment
Eliminate redundant systems.
Reduce integration costs.
Facilitate the Authorised Economic
Operator (AEO) accreditation
Control supply chain processes and
audit trail.
Business confidence on time critical cross
border movements.
Meet regulatory changes with minimum
impact on business trade.
Improve management visibility and
accuracy of customs classification and
operation of customs regimes.
Reduce cost and shorten delivery times
Gain competitive advantage through AEO
certification and use of customs
simplification measures.
Enhanced compliance reputation with
fiscal authorities.
How Deloitte can help
Deloitte has a multi-disciplinary team that
understand in detail what the new global
trade environment means for your business.
As SAPs global preferred partner in
Governance, Risk & Compliance, our team
has extensive experience of working with
clients across all areas of customs
compliance and planning.
We can provide a unique full-suite of SAP
services, including Tax Planning &
Optimisation, Regulatory Compliance and
SAP Technology.
Our comprehensive and flexible approach,
from advisory service to implementation and
support, can be customised to your
particular needs.
Typical commercial responses have included:
Review of systems and processes
addressing Customs requirements.
Readiness preparation for Authorised
Economic Operator (AEO) status.
In-sourcing of Customs Compliance.
Contacts
David Dutt
Consulting
Tel: +44 20 7303 0010
Email: ddutt@deloitte.co.uk
Mark Edwards
Consulting
Tel: +44 20 7007 9941
Email: markredwards@deloitte.co.uk
Tajinder Bhalla
Tax Management Consulting
Tel: +44 (0) 7974 422526
Email: tbhalla@deloitte.co.uk
Franky De Pril
Customs & International Trade
Tel: +44 20 7007 0980
Email: frankydepril@deloitte.co.uk
SAP global trade services
As is status
process
mapping
Assessment
and review
To be model
(incl GAPs)
Design and
implement
Operate Optimise
Project management.
Functional implementation
(includes application
configuration, development
and testing).
Technical implementation
(installation, BI/BW,
archiving, load, convert.
Change and learning (HR,
organisational design,
training development and
delivery).
Data management/
maintenance.
Cutover/transition.
Legal watch.
Customs authority facilitation.
Communication out-tasking.
Service/Help Desk (Legal).
Tax efficient SCM.
Tax compliant SCM.
Supply chain optimisation
(i.e. service parts logistics).
Enabling technology
assessment.
Transformation plan.
System integration/design.
Project management.
Business case (feasibility).
AEO readiness assessment.
AEO licence facilitation.
Advisory Services Implementation Services Support Services
Deloitte provides integrated services to its clients, managing tax, risk and compliance
issues within the system environment
Deloitte roadmap and service model for SAP GTS
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