In the globalized business environment, cross-border trade has become a routine operation for many organizations. However, with global trade comes the responsibility to comply with various customs regulations, export controls, and trade laws. In the context of SAP-SCM (Supply Chain Management), the Customs and Compliance function plays a crucial role in ensuring that goods are moved across borders legally, efficiently, and cost-effectively.
SAP provides dedicated solutions like SAP Global Trade Services (SAP GTS) to help companies automate and manage their international trade processes while maintaining compliance with local and international regulations.
Customs and Compliance refer to the processes involved in:
These activities are essential for minimizing legal risks, avoiding fines, and ensuring timely delivery of goods across borders.
SAP offers several tools and functionalities to manage customs and trade compliance efficiently, mainly through SAP GTS. Some of the core features include:
Customs and Compliance functionalities in SAP are not standalone—they are integrated with other core SCM components:
Implementing customs and compliance processes within SAP-SCM offers multiple benefits:
A multinational electronics company uses SAP GTS to ensure that all its international sales orders are automatically screened for export restrictions. The system blocks any transaction involving countries under embargo or flagged customers.
A European manufacturer utilizes SAP GTS to determine whether goods qualify for preferential duty rates under the EU-Korea Free Trade Agreement. This helps reduce total landed costs and stay competitive.
Customs and Compliance in SAP-SCM is an essential function for any business involved in international trade. By leveraging solutions like SAP GTS, organizations can streamline trade operations, ensure global compliance, and reduce associated risks and costs. As regulations continue to evolve, having a robust SAP-based compliance framework is critical for sustaining efficient and lawful global supply chain operations.