Features of Global Trade Services and 8 Must Haves in GTS
Global Trade Services manages all complexities of international trade including full regulatory compliance, interactions with customs and management of risk while trading on a global basis. It consists of separate modular components that enable companies to improve their supply chain and comply with international regulations.
Global trade is growing rapidly and since 1980 has grown at CAGR ~ 9.3% Traditionally businesses have not automated the global trade processes.
Global trade is largely manual, paper driven and error-prone processes in place and not considered strategic. It's also complex due to number of parties involved, document requirements and changing regulations.
What are the features of Global Trade Services?
- Compliance Management ensure International Trade Compliance
- Sanctioned Party List Screening
- Avoid doing business with denied parties
- Interface to external data providers
- Comprehensive screening against multiple lists, all business partner
- Phonetic and linguistic checks
- In every process step – order to cash, purchase to pay
- Checks include one-time customers as well as address changes in documents
- The sensitivity of checks is adjustable to specific business needs
- Import/ Export Control
- Ensure vigilant compliance with trade regulations
- Check and manage import and export licenses
- Check for embargoes
- Automatic track both quantity and value depreciation with an import/ export license
- Simulation capabilities
- Customs Management expedites Customs Clearance Process
- Product Classification
- Maintain classification – HTS, ECCN on global product master
- Text based search capabilities with intelligent (phonetic) proposal allowing a user to look up HTS numbers by keywords or phonetics
- Duty Calculation
- Calculation of duty of imported merchandise at time of customs entry
- Calculation of transaction value, deductive value and computed value
- Can handle assists, commissions, packing costs, and royalties
- Handles exclusions and limitations such as freight charges
- Trade Documentation Service
- Enhanced set of pre-delivered forms like Commercial invoices, Entry summaries and Certificates of origin
- Extensible to web for broker/forwarder retrieval
- Customs Communication Service
- Facilitate electronic communication with customs authorities/ trade systems - such as NCTS and AES
- Allow for multiple transmission methods such as EDI, XML, etc.
- Risk Management leveraging Trade Agreements and Subsidies is Business-Critical
- Trade Preference Processing
- Improve competitiveness (via reduced duty rates) by leveraging trade preference agreements
- Comply with the regional trade agreements e.g. NAFTA
- Eliminate risks of fines by providing documentation (e.g. cert. of origin) and audit trail to authorities
- Automation of complex preference processes enables accurate preference calculation and determination
- Preference Processing Restitution Handling
- Restitution Handling
- Claiming refunds for export of CAP products (common agricultural products) out of the EU
- Automation of complex process with capabilities to assign securities, manage export licenses, maintain recipes and calculate and apply for refunds
What are the 8 Must Have features of Global Trade Services?
- Compliment & leverage your ERP investment
- Ease of integration for short implementation
- Accountability requires centralized approach and you keep control & visibility of entire process
- Short ROI of less then 12 months
- Global GTM solution provider
- Intelligent content vs. amount of content (fluid)
- One Global Content Repository… not multiple
- Contributes value and efficiencies to other areas of the org.