Navigating Red Tape and Global Trade Compliance with SAP GTS

Oct 02, 2023
  • operations
  • food
  • SAP
  • intelligent apps

Explore how SAP Global Trade Services helps the food and beverage industry tackle regulatory challenges in this insightful blog...

The food and beverage industry faces ongoing challenges related toStreamline regulatory compliance , including Brexit-related checks on EU fresh farm produce entering the UK. These checks, despite repeated delays, alongside the new Export Health Certification and other regulatory procedures are contributing to rising costs within the industry due to increased documentation and preparations for compliance with new measures. 

Streamline regulatory compliance 

Having the right technological infrastructure is crucial for facilitating and accelerating your adherence to regulatory requirements. SAP's Global Trade Services application enables businesses to efficiently navigate the intricacies of cross-border trade, ensuring comprehensive regulatory compliance, seamless electronic communication with customs authorities, and seamless integration with your import and export processes. 

Accurate product classification is the foundation of global trade best practices and master data and will often require collaboration with a product engineer and compliance specialist. To accommodate the diverse requirements of various global authorities and jurisdictions, it may be necessary to manage multiple classifications for each product. With the use of SAP GTS, your system can efficiently store multiple classifications for a single product, encompassing categories such as HS, HTS, TARIC, PGAs, and ECCNs.

Seamless integration for customs and government agencies

SAP GTS supports more than 25 certified interfaces for customs and other government agencies, even integrating with the European EMCS, which is particularly important for handlers moving goods to and from bonded warehouses. Through this integration, it allows the monitoring of goods movements under suspension of excise duty within the EU and UK whilst also managing Intrastate reporting, enabling organisations to comply with EU regulations whilst limiting the administrative work involved with transnational trade.

If your company continues to rely on external compliance experts or custom brokers, SAP GTS can streamline the sharing of information with them through its Web Services feature. This application is also equipped to oversee your import and export documentation, including items like commercial invoices, bills of lading, and import licenses. These documents can be effortlessly linked to the pertinent transactions and readily available for customs audits. 

Effectively Manage Adherence to Legal Requirements 

Engaging in the import, export, or management of food, beverages, and agricultural goods involves navigating a complex network of regulations and guidelines. This includes mandatory obligations like possessing an Export Health Certificate (EHC) for handling processed food and beverages, animal products intended for human consumption (POAO), as well as vegetables, fruits, and other plant-based foods. In addition to these requirements, staying vigilant about the constantly evolving regulatory landscape is crucial for your business, especially in light of new customs procedures like CHIEF and the post-Brexit GVMS system. 

picture of a lady inspecting water bottles on a production line

Integrating SAP GTS with your sales and distribution processes will allow your business to automate and manage your adherence to legal requirements whilst also automating checks against export control lists and embargoed countries, ensuring complete compliance with international trade regulations and supports you in avoiding unnecessary costs by automatically determining your eligibility for preferential tariffs or duties by using content-based rules of origin to ensure you maintain your trade preferences.  

Enhance Sourcing, Procurement and Supplier Collaboration

Alongside this, SAP GTS also offers the same benefits to your sourcing and procurement processes, allowing you to expedite your importing procedures. The solution can also assist in fostering cohesion and collaboration with your suppliers by implementing supplier screening and facilitating the exchange of customs data, to prevent delays in the shipping of goods and the subsequent stocking of shelves. 

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