GTS

[Former Member]

Hi All,

This is the first time we are going to internationally ship a product . The distributor is in Korea and the manufacturing will be done from our plant in USA and supplied to Korea.There is a special requirement by the customer where in they want the Prescribing Instructions on the cartons to be in Korean language .

Now my question is

1. When doing a International shipment , what are the things I need to consider . Since this involves exports , we might have to provide documentation to the custom authorities .This being the case what are the documents I need to provide from Legal point . I would also like to know about the licensing

I know for sure that Foreign Trade functionality is available in ECC 5.0 .But will it be the right choice to use which will take care of everything including the language conversion (korea) .

Secondly though this is the first international customer,we are expecting lot more in the forthcoming years. So will GTS be the right choice to use. I know that this might involve cost as they need to pay for GTS licences and get it installed . I see the option of GTS plug in under FT menu in ECC 5.0. Does this mean we still need to buy licenses to use this functionality.Will GTS be a good choice in long term??

Please advise which will be the right choice to confisure a international shipment?

Thanks

Amrith

[Former Member · Accepted solution]

Hi Amrith -

I've been in the compliance/regulatory specialty for 9 yrs. now....5yrs. in business reporting to legal council/finance & 4 yrs supporting IT solutions. I have seen specific solutions that were better....for instance Sanction Parties solutions; provided by other 3rd parties which specialise is one specific area.

However, I have not seen any solution on the market that supports the breadth of what GTS covers; nor have I seen the amount of improvement over a short time frame of development.

I am not a SAP employee, but definitely resepect the amount of Time and Effort which has been made evident in the short life span of the product. My perspective is more from the regulatory/compliance point of view; merely on a journey from the IT implementation point of view.

Began with Foreign Trade Module in R/3, migrated towards GTS 1.0, upgraded to 1.5, implemented 2.0, interacted with 3.0, 7.0, implemented 7.1, modeling with 7.2, & look forward to working with 8.0....so you might say I have a pretty good perspective of how the product has been forming since the year 2000...so to speak.

To answer your question....will the existing Foreign Trade Module suffice for your requirements?....possibly....with extreme limitations. It can not compete with the flexibility of GTS; nor is SAP supporting additional requirements in that area...rightfully so.

Is it the best choice?....Depends.... How serious is your business with regards to the cost of compliance.....or better yet, are they prepared to pay the price of noncompliance?

I have not been provided a better over all solution to date; irrespective of the challenges presented during the journey.

Regards,

Jon

[Former Member · Accepted solution]

Hi Jon,

Thanks a lot for giving a better insight. Honestly speaking,at this point of time , I am not sure how serious the business will consider even if I propose this solution .

Even if i start thinking from their shoes, my first question would be what is the benefit I get spending so much and implementing GTS when SAP R/3 could fulfill the requirements though with some customizations in place .

Secondly since I haven't worked on hands in GTS , I won't be in a position to put forward my thoughts boldly in the table and to defend my suggestion as to what will be the ROI and long term benefits.

I agree GTS is indeed a perfect solution when the business has its breadth and depth and when the number of Interantional customers and process are handful. But in my scenario, this is the first international shipment and I am not sure what are the legalities involved in it .

I would really appreaciate if you could let me know what are the export /import documentation i need to provide to the customs authorities from your experience.

Thanks

Amrith

[Former Member]

Hi Amrith

More important than focusing on the documentation for exporting from the U.S. and importing into Korea, the data contained in the documents would be of paramount concern since most transactions are now transmitted electronically. Once the data items are confirmed against GTS's input capabilities, you will be closer to deciding to use its functionality, go with another solution or work with the GTS team to incorporate necessary changes. The commercial invoice, packing list and bill of lading are the primary trade documents and depending on the product being exported other certificates and licesnes may apply.

If your company intends to do regular business with Korea, please also keep a lookout for the U.S.-Korea Free Trade Agreement signed two years ago but not yet approved by the U.S. Congress. This may impact your trade, beneficially, i would hope.

Best Regards

Ashok

Edited by: ashoksadhwani on Jul 9, 2009 12:17 AM

[former_member58030]

Hi Amrith,

Some more information

Now my question is

1. When doing a International shipment , what are the things I need to consider . Since this involves exports , we might have to provide documentation to the custom authorities .This being the case what are the documents I need to provide from Legal point . I would also like to know about the licensing

1. Please go through the website for correct up to date information.

http://www.export.gov/

I know for sure that Foreign Trade functionality is available in ECC 5.0 .But will it be the right choice to use which will take care of everything including the language conversion (korea) .

Secondly though this is the first international customer,we are expecting lot more in the forthcoming years. So will GTS be the right choice to use. I know that this might involve cost as they need to pay for GTS licences and get it installed . I see the option of GTS plug in under FT menu in ECC 5.0. Does this mean we still need to buy licenses to use this functionality.Will GTS be a good choice in long term??

Yes, GTS will be a good choice

Please advise which will be the right choice to confisure a international shipment?

SAP GTS

Regards,

Prarit

[Former Member]

Hi Amit,

we have to submite various documents in International shipment it depends on Country of Dep & Country of Dest.

Gone through the link http://help.sap.com/saphelp_gts30/helpdata/en/26/35f327b10fe941ab367ebcefd9cbe5/content.htm

Need of separate application of Exports & Imports.

1.Due to the various regulations we need good application for Imports/Exports * Customs processing.

SAP GTS will address all your company needs in SPL,Embargo & Legalcontrol areas with minimum cost and more security.

2.Need automation application to communicate with Customs Authoritit bodies.

SAP GTS will provide automation communication process with Authorities.(you can use Seburger with SAP GTS)

Please let me know if you have any quiries .

Thanks,

Subbarao.

[Former Member]

Greg,

In your reply to Amrith you mention " I have personally seen and used three different systems and can easily say that GTS is the most robust and most flexible when it comes to license controls." Could you say what other systems you had experience with? What types of shortcomings did the other systems have? We have not yet implemented License Controls.

Thanks,

Rozann

[Former Member]

Hi Amrith,

Like Jon, I have years of experience in several areas relevant to your question. I have worked in international transportation, been an Export Compliance officer in a Fortune 100 company and have implemented about six full GTS projects and two upgrades. I'm only saying that to qualify my answer.

First, you should visit the website for the Bureau of Industry and Security (BIS). This is a division of the Department of Commerce and they control the export regulations of the United States. They may even be able to help you find sources for export regulations of Korea if that applies to your business model.

www.bis.doc.gov. When you reach this page, scroll down and look for "Export Control Basics" on the left side. Also, read the publication on the right side of the screen titled "Don't Let This Happen To You". It describes the serious fines and prison penalties for not following the regulations. Even if you sell your goods with EXW incoterms and the buyer agrees to use their own carriers and freight forwarders, your company is still responsible for satisfying export regulations for your product.

Secondly, please visit the website for US Customs (www.cbp.gov) and read any information they have about filling out the SED (shipper's export declaration) form or using the AES system for electronic filing of the SED form.

Finally, someone from your organization may want to join the ICPA (International Compliance Professionals Association) www.icpainc.org. If you are an exporter, membership is only $100 per year and well worth the price. Other worthwhile export associations include ATCP (Association of Trade Compliance Professionals) www.complianceprofessionals.org. I think membership is free.

Once you determine your need for export controls, I would advise that you seriously consider implementing GTS. I have personally seen and used three different systems and can easily say that GTS is the most robust and most flexible when it comes to license controls. It is configurable for any legal regulation in the world for licensing products. I concur with Jon that Foreign Trade may meet your needs for now and that may be sufficient. However, you must realize that SAP has publicly stated it is no longer supporting new functionality in FT, while it is expanding the capabilities of GTS each year.

This will get you started. Good luck !

Cheers,

Greg Futrelle

[Former Member]

Amrith -

A very broad question & it depends. Each nation can have unique document requirements. Generally speaking, if the country is measuring financial flows in & out(which the US does), you may need a declaration of exportation; dependent upon value of individual classification by shedule B. Pysical documentation for any conditional license requirements, hazardous materials, along with standard documenation used in transportation management, etc. for outbound. And customs declarations for inbound movements. Korea may have importation requirements....really don't know.

Never the less, these types of questions really need to be directed to the business users you are supporting. If they ship internationally today, they already know. If they are just starting up, there are other more appropriate forums to obtain the regulatory requirements.

Regards,

Jon