DeloitteGlobal Trade ServicesCentre of Excellence

IntroductionIn current environment, Global Trade policy and regulatoryframeworks are under intense scrutiny with historic changesproposed or in process. To navigate and plan for potential regulatorychanges of this magnitude, global entities require scalable globaltrade management systems to enable compliance operationsresulting from significant regulatory changes. To give an idea of thecomplexity of Global Trade, companies who serve a global marketneed to: Ensure no trade is done with embargoed countries and black listedentities Optimize the declaration & clearing process Review the sourcing of their products, since the use of Free TradeAgreements (FTA’s) may lead to a significant decrease in importduties being paidDeloitte’s global offering of SAP Global Trade Services (SAP GTS)will help companies to centralize, automate and manage all thesecollective requirements. Over the past decade, Deloitte hasdeveloped a market-leading service offering for implementing SAPGTS on a global scale. This unique service offering combines a mixof global trade regulatory specialists, technical resources that havededicated their careers to architecting and deploying SAP GTS andcertified functional SAP GTS experts. The result is a vast network ofhighly experienced, international trade specialists, allowing Deloitteto provide regional and local regulatory support according to clientspecific needs, whatever and wherever they may be.3

Our international GTS team can offer expertise across all the GTS functionalities: Compliance Management looks at Sanctioned Party List (SPL) screening, Embargo screening and at import & exportLicense Management, including applications and amendments (e.g. license management for regulatory bodiessuch as the Export Administration Regulation (EAR) and the International Treaty of Arms Regulation (ITAR) amongstothers, but also for the Food and Drug Administration (FDA), etc.). Customs Management mainly focuses on the efficient declaration and clearing of customs. It ensures that bordercrossings do not cause delays in customers’ deliveries, and at the time optimizes inventory for clients. This includesImport & Export e-Filing as well as Bonded Warehousing, Free Trade Zones and Inward/Outward Processing Reliefhelping to leverage the specific duty regimes available across the world. Trade Preference Management is aimed at leveraging international trade agreements such as EU agreements,MERCOSUR, ASEAN Free Trade agreements or the North America Free Trade Agreement (NAFTA). Letter of Credit helps manage and automate the letter of credit related activities at the different stages of the orderto cash process.An integrated Offering - 94 PractitionersGlobal Trade ExpertYearsof GTSExperience10 to 14yearsTax & Legal3 to 12years5 to 8yearsAudit & RAConsulting44 to 8years1 to 4yearsFunctional SAP GTS ExpertPartnersTechnical SAP GTS Expert4Partners / Sp. Leaders5(Senior) Managers / Leads15Senior Consultant / Senior Specialists / Senior Global Trade Advisors30Consultants / Business Analysts / Jr Global Trade Advisors40

Approach & Integrated OfferingThe GTS team supports clients in every SAP GTS related topic such as: Global Trade vision and roadmap Reduction of compliance costsof global trade regulation andoperations management Acceleration of cross-bordertransactions Financial risk reduction ofregulatory non-compliance ofinternational trade Expansion of duty optimizationbenefits available in internationaltradeTax & AuditConsulting Global Trade Analytics turningglobal trade insights in businessbenefitsRAGlobal Trade ManagementTechnologyCustomsmanagement Avoid delays at borders to ensure fastdelivery to customer Expedite customs clearance to reducecostly buffer stock Enable trade data consistency Self filling capabilities for import andexport Leverage special customs proceduresto maximise benefits (Free trade zone,bonded warehousing, IPR, etc.)Compliancemanagement Manage export and import licensesincluding Web Portal access to Licenseapplication & Amendments Minimise penalties and delays Restricted Party Screening (businesspartners and financial transactions) Embargo Check Export Control Product Classification(ITAR, EAR, etc.)Trade preferencemanagement Optimize the use of internationaltrade agreements Vendor declaration handling Customer declaration handling Preference determinationMaster & Transactional DataOfferingS/4HANAExtensive ExperienceSAP GTS Market LeaderData AnalyticsGlobal Integrated practiceECC KnowledgeInternational team mobility5

Client ValueGlobal trade continues to evolveas one of the most complex andcrucial aspects of supply chainmanagement. With a mix ofnational security, foreign policy,revenue collection and consumerprotection objectives, the need fortechnology-based solutions acrossthis data intensive field with broadlegal ramifications is imperative.Architecting the right solution andblending this effort across businessprocesses requires a well-formulatedapproach and sound execution. SAPGlobal Trade Services (SAP GTS) isthe enterprise trade managementplatform which centralizes, managesand automates these collectiverequirements. Given Deloitte’s 360 analysis of structures, processesand systems, we are extremely wellequipped in matters of Customs andInternational Trade to come up withsolutions for any challenges whichthe client might be facing.We offer value to our clients in the following areas:Legal requirements Full understanding and knowledge of worldwide international trade agenda and of synergies between different legal agendas Legal watch service to customers Close collaboration with national authorities, and implementation party of authorities execution systemsImplementation partner Global strategic partnership with SAP BusinessObjects Governance, Risk and Compliance (GRC) and close collaboration with SAP AG onprioritizing software functionalities (3 GRC related SAP Pinnacle awards in the last 3 years) Access to national authorities during implementation (project timeline assurance, goodwill) Fully integrated international trade compliance and SAP GTS expert teamChanges Organization design: Deloitte is a key player in the shared service center study and implementation Training by customs experts for customs experts (we have former customs officers in the Deloitte team) Track record in cost reduction by optimizing trade compliance processes (e.g. simplification granted by authorities in filing process, customsvaluation optimization . )Quality Data quality of existing ERP systems: Deloitte tools and control framework (Commodity Code Analyzer, Tax Risk & Opportunity Analyzer) Quality of the business input: expertize to access quality of data and As-Is information providedCost and Speed GTS template: forms (SAD, SED, EURl, Certificate of Origin . ), feeder system interface filtering mechanism, ABAP workaround for productfunctionalities GAPs (global and localization) Enterprise Value Delivery (EVD) methodology for GTS6

Functional SAP GTS ExpertsGlobal Trade ExpertsDue to the ever changingand complex global traderegulations, it is critical tohave deep understandingand interpretation of therequirements includinghelping to translate these intothe SAP GTS solution design.Our Global Trade experts havedeep understanding of the SAPGTS functionalities, as well as taxand international trade regulatoryexpertise.These experts work closely with theSAP GTS Functional and Technicalexperts when deploying the GTSsolution.The Functional SAP GTS experts have strongSAP GTS functionality expertise and areresponsible for documenting the businessand regulatory requirements that need tobe considered for the SAP GTS solution.Depending on their level, these profiles have1 to 7 years of relevant SAP GTS experience.These experts also have knowledge ofthe ERP Central Component (ECC) andS/4HANA.Technical SAP GTS ExpertsThe SAP GTS Technical experts have a strongtechnical background of SAP GTS. These expertstake a lead role in configuring and deployingthe GTS solution including technical design andimplementation of potential enhancements oradd-ons. These experts also have knowledge ofthe ERP Central Component (ECC) and S/4HANA.7

GTS FootprintWe have built extensive experience with respect to the implementation of SAP GTS worldwideusing Deloitte integrated teams combining Tax (Customs and Global Trade) and Consulting’sEnterprise Applications/SAP transformation services.Also, through close collaboration with our local customs experts, we were able to accelerateand secure legal requirement gathering and validation, delivering projects within timeline andbudget.Global Luxury GoodsConglomerate8International leader inPower & AutomationSolutionLife Science CompanyOne global SAP ERP-systemand multiple non-SAP feedersystems, connected to asingle GTs instance(GTS 11.0)Multitude of country-basedSAP ERP feeder environmentsconnected to a single GTSinstanceFull GTS Implementation customs Management Trade Preference Compliance Management customs Management compliance Management customs Management Trade Preference extensions (GTS Analyticsand GTS xECM)Switzerland & APACWorldwideWorldwide 1 600 000 products 450 000 Bill of Materials 250 000 Business Partners Localized direct e-filing andbroker model Preference support for nonERP integrated flows 20 ERP Feeder Systems Interface with externalsoftware for productclassifications e-Filing interface with localbrokerage environments Mixture of SAP & non SAPfeeder system landscape E-filing with customs BI analytics dashboard onproduct sourcing GTS xECM DMS integration

Deloitte COE GTS Project Coverage9

GTS PublicationSince the inception of SAP GTSover ten years ago, Deloitte hasworked alongside SAP pioneeringthe implementation of this solutionin countries around the world. Thisglobal, multi-year effort, presentedthe opportunity for the Deloitteteam to develop deep experienceon the intricacies of architecting SAPGTS across all functional capabilitiesincludingCompliance, Customs and Riskmanagement. We have workedalongside the SAP GTS team inWalldorf (Germany), with the jointgoal of improving, developing, andmaturing the SAP GTS solution andrelated implementation services.Just over three years ago, theDeloitte GTS Global CompetenceCenter initiated a journey aimed atsharing this breadth of experiencewith the broad internationalcommunity that works across themaze of global trade regulatoryrequirements and technologysolutions to manage increasinglycomplex supply chains. Theintended result: to publish this SAPGTS content with SAP Press, themost renowned publisher of SAPknowledge. SAP Press, after hearingmore about this decade-longendeavor, lent their support andguidance to this body of work thatencompasses a mix of technical,functional and regulatory content.This publication will help companies,global trade professionals, andSAP GTS practitioners further theirknowledge and understandingacross the complex intersection ofglobal trade regulatory requirementsand this enterprise technologysolution. The intent of thispublication is to provide a resourceto all, regardless of whether or notthe reader is considering a firsttime SAP GTS deployment, refiningexisting functionality or deployingthe solution in new regionsglobally. With various configurationoptions noted in detail, this uniquepublication should have somethingfor everyone.PublicationA book “Imp lementing SAP Global Trade Services” has been published in November 2014.The SAP Press recommends it and has written the follow ing review:“Cut through overwhelming complexities with this comprehensive guide to SAPGTS. Begin by exploring fundamental SAP GTS concepts for configuration andimplementation; then see how SAP GTS functionality can help you manage customs,export controls, and risk management throughout your international supply chain.Resolve real-world global trade issues and avoid delays and penalties to ensure thatyour business seamlessly circles the globe with SAP GTS.Effictively implement and configure SAP GTSManage regulatory changes and meet specific business needsIdentify and solve customs-related issues for your business”10

ContactsYannick JacquesPartnerGlobal GTS Practice Leader 32 2 749 56 [email protected] RuttenPartnerGlobal Trade Practice Leader 32 496 57 49 [email protected] MorisPartnerEMEA GTS COE Practice Co-leader 32 2 600 66 [email protected] LecourPartnerUK GTS Practice Leader 44 7880 [email protected] KiekensSenior DirectorEMEA GTS COE Practice Co-leader 32 2 749 58 [email protected] ClaassenPartnerEMEA GTS Risk and Processes 32 475 87 39 [email protected] BellendirSenior ManagerAPAC GTS Practice Leader 81 er HalloranManaging DirectorUS GTS Practice Leader 1 [email protected]

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