SAP GRC Global Trade Services 7.2 Preferred Practice US Automated Export Systems (AES)

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1 SAP GRC Global Trade Services 7.2 Preferred Practice US Automated Export Systems (AES) SAP GRC Updated September 2010

2 2 1. Table of Contents 1. Introduction Prerequisites Scenario Description Process Diagram Step By Step Procedure Foreign Trade Organization and Legal Unit Set Up the Legal Regulation Define and Assign the Determination Procedure Activate the Legal Regulation Configuring Messages for Post Processing Framework (PPF) Actions for Customs Shipments/Declarations Check Electronic Messages Customs Management Service Control Set Up the Process Flow for Customs Processing with AES Define Rules for Message Output Customs Code Lists Partner Group Document Type Setup Communication Process Print Control for Documents Message and Printer Determinations Defaulting Data Sample IDoc of Customs Declaration Comments and Feedbacks...43

3 3 1. Introduction SAP GRC Global Trade Services (GTS) release 7.2 provides automatic communications with US Customs and Border Patrol (CBP) system Automated Export Systems (US-AES). As of June 2, 2008 the CBP released this notice. Mandatory Automated Export System (AES) Filing for all Shipments Requiring Shipper s Export Declaration (SED) information The U.S. Census Bureau has issued the final rule implementing provisions in the Foreign Relations Authorization Act, Public Law This rule was published in the Federal Register on June 2, 2008, amending Title 15, Code of Federal Regulations, Part 30, Foreign Trade Regulations (FTR) in its entirety. Effective July 2, 2008, the Census Bureau is requiring mandatory filing of export information through the Automated Export System (AES) or through the AESDirect for all shipments where a Shipper s Export Declaration (SED) is required. We are also providing the trade an additional 90 days to implement these new requirements. After the 90-day implementation period, which ends September 30, 2008, you must file your export information electronically through the AES or AESDirect. Additionally, these new regulations have tougher penalty provisions that affect everyone in the export process. Penalties may be imposed per violation of the FTR from $1,100 to $10,000 both civil and criminal, for the delayed filing, failure to file, false filing of export information, and/or using the AES to further any illegal activity. Also, all AES filers are faced with new filing deadlines by mode of transportation for reporting export information. It is important that you understand these new requirements so that you avoid the increased penalties and seizure of your commodities. The Census Bureau has instructed filers of export information to make every effort to submit these data via the AES or AESDirect to eliminate the use of paper SEDs immediately. During the 120-day implementation phase, the Census Bureau will use informed compliance to outreach to filers identified in violation of the FTR. Anyone submitting paper after September 30, 2008 will be in violation of the FTR and subject to penalties. The following is a guide for the implementation of the functionality of US-AES with SAP GTS 7.2 and SAP ECC 6.0 as a preferred practice. Once this guide is completed, the implementer should be able to communicate successfully with the Customs office.

4 4 2. Prerequisites PREREQUISITE SAP GRC Global Trade Services Required components and Support Packages for SLL-LEG 7.20 DETAILS GTS Release 7.2 Required SAP_BASIS 700 SAPKB70010 SAP_ABA 700 SAPKA70010 PI_BASIS 2005_1_700 SAPKIPYJ7A SAP_BW 700 SAPKW70010 SAP_AP 700 SAPKNA7005 Support Packages for SLL-LEG 7.20 SAP ERP backend system for logistics processing R/3 plug-in for SAP Global Trade Services (SAP GTS) Seeburger Adapter Customs Communication Authorization Letter of Intent Note ECC 6.0 Configuration and enhancements will need to be done to determine the billing documents and information that come over to GTS Customs Processing. (Not included in this documentation.) Note One of the adapters that can be used for the EDI communication. Plan and budget for approximately one week of time and cost for Seeburger Consulting. The adapter (client software, interface maps) is included in the GTS license, but the installation and configuration activities performed by Seeburger are not. Here is the contact information of Seeburger: Phone: (770) Website: Please refer to SAP Note , and for detailed mapping information. Request and receive authorization for electronic communication with a Customs Office, this would include ID and password. Complete and submit a letter of intent to US Customs as soon as possible. It can take a long time (months) to have a Customs Case Officer assigned and engaged. i. You can find the LOI form here: data.xml ii. And instructions/overview here: IDoc Customizing IDocs are used for the communication with customs offices. IDocs capture the necessary data used by the Seeburger adapter to send information to customs offices in the correct format.

5 3. Scenario Description This process describes the export of product from IDES US, USA to IDES AG, Germany. The product is subject to authorization.

5 5 3. Scenario Description This process describes the export of product from IDES US, USA to IDES AG, Germany. The product is subject to authorization. The foreign trade relevant activities are fully integrated in the logistic process. The relevant export documents for AES are available and can be printed at the end of the process. 4. Process Diagram

6 6 5. Step By Step Procedure 5.1 Foreign Trade Organization and Legal Unit SAP Global Trade Services (SAP GTS) uses the SAP Business Partner Concept. You create a business partner for each party (person, organization) involved in foreign trade business. Within the individual business transactions, such as an import transaction, a business partner can take on various partner functions, providing the business partner meets the relevant requirements. When creating both foreign trade organization and legal unit, you have to at least enter the address and assign the relevant role for each business partner. Foreign Trade Organization SPRO SAP Global Trade Services General Settings Organizational Structure Define Foreign Trade Organizations

7 7 Maintain the business partner in role SLLFTO for Foreign Trade Organization: Legal Unit SPRO SAP Global Trade Services General Settings Organizational Structure Define Legal Units

8 8 Maintain the business partner in role SLLSIT for Legal Unit:

9 Assign company code to Foreign Trade Organization (FTO) SPRO SAP Global Trade Services General Settings Organizational Structure Assignment of Organizational Units from Feeder System to Foreign

9 9 Assign company code to Foreign Trade Organization (FTO) SPRO SAP Global Trade Services General Settings Organizational Structure Assignment of Organizational Units from Feeder System to Foreign Trade Org: The Foreign Trade Organization (FTO) can be assigned at Feeder System Level or Feeder System Group Level. It depends on if you have set up a Feeder System Group or not. You can manually assign or automatically transfer company codes from feeder system to FTO. If you choose to do it automatically, double click on Automatically Transfer Company Code. You will have to enter the Logical System (Feeder System) from where data is to be transferred, and enter the FTO to assign the company code. If you choose to do it manually, double click on Manually Assign Company Code, and then select the button New Entries. Enter the company code information and match it to your desired FTO.

10 10 Assign Legal Unit to Foreign Trade Organization SPRO SAP Global Trade Services General Settings Organizational Structure Assign Legal Unit to the Foreign Trade Organization:

Feeder System Group level. You have the options to do it manually or automatically.

11 11 Assign Plant from Feeder System to Legal Unit SPRO SAP Global Trade Services General Settings Organizational Structure Assignment of Organizational Units from Feeder System to Legal Unit You can assign the plant from feeder system to the legal unit either at Feeder System or Feeder System Group level. You have the options to do it manually or automatically. If you select to do it automatically, you need to enter the feeder system. If you select to do it manually, click the button New entries, then chose the Legal Units to assign the plant from the feeder system.

12 5.2 Set Up the Legal Regulation Legal regulations are the central control elements for services performed in GTS. Here you define which laws are checked for export and import processes.

If country groups are used during the license determination, you need to define the country groups first.

12 Set Up the Legal Regulation Legal regulations are the central control elements for services performed in GTS. Here you define which laws are checked for export and import processes. In addition, you assign different deadline types to each legal regulation and the country groups a legal regulation is valid for. If country groups are used during the license determination, you need to define the country groups first. SPRO SAP Global Trade Services General Settings Legal Regulations Define Legal Regulation Note: 1) This legal regulation represents the procedure of AES 2) The Type of Legal Code is: Customs Processing 3) The country from which the legal regulation was issued is: US 5.3 Define and Assign the Determination Procedure You have to enter a determination procedure to enable the system to determine the legal regulations for a service. To do so, you assign the determination table to the determination procedure. The system can then uses the departure country (export) and the destination country (import) to determine the legal regulations.

13 You can also define for each determination procedure whether the system stops determination as soon as it finds the first active legal regulation or whether it goes through all the

If your logistics processes involve several countries and legal regulations in a service, this lets you perform the checks and determination for several legal regulations.

13 13 You can also define for each determination procedure whether the system stops determination as soon as it finds the first active legal regulation or whether it goes through all the available active legal regulations for the service. If your logistics processes involve several countries and legal regulations in a service, this lets you perform the checks and determination for several legal regulations. Define Determination Procedure SPRO SAP Global Trade Services General Settings Legal Regulations Define Determination Procedure for Active Legal Regulations Assign Determination Procedure to Service SPRO SAP Global Trade Services SAP Customs Management Customs Processing Service Assign Determination Procedure for Active Legal Regulations

14 5.4 Activate the Legal Regulation Here you activate the legal regulations for each departure country or country group (export) and destination country or country group (import).

Activate the Legal Regulation for a Country SPRO SAP Global Trade Services General Settings Legal Regulations Activate Legal Regulations at Country/Country Group Level In this case, the departure

14 Activate the Legal Regulation Here you activate the legal regulations for each departure country or country group (export) and destination country or country group (import). This enables you to specifically define the validity area of a legal regulation. Activate the Legal Regulation for a Country SPRO SAP Global Trade Services General Settings Legal Regulations Activate Legal Regulations at Country/Country Group Level In this case, the departure country for export is US. Activate the Legal Regulation for Export Here you activate the legal regulations for each departure country or country group (export) and destination country or country group (import) for each service that will be active in GTS. SPRO SAP Global Trade Services Customs Management Customs Processing Service Activate Legal Regulations

15 5.5 Configuring Messages for Post Processing Framework (PPF) Actions for Customs

medium that GTS uses to communicate with the US Customs offices.

15 Configuring Messages for Post Processing Framework (PPF) Actions for Customs Shipments/Declarations The configuration of the Post Processing Framework (PPF) defines the technical medium that GTS uses to communicate with the US Customs offices. SPRO SAP Global Trade Services SAP Customs Management General Settings Communication Processes Define Techn. Medium for Msgs (PPF Actions) from Cust.Shipm. and Cust.Decl.

Settings Communication Processes Define Conditions

16 16 Action Definition Process Type SPRO SAP Global Trade Services SAP Customs Management General Settings Communication Processes Define Conditions and output Parameters for Comm. of Cust. Ship. & Cust. Dcl

17 5.6 Check Electronic Messages Double-check Electronic Message ID

customs authorities as the customs declaration.

17 Check Electronic Messages Double-check Electronic Message ID These are electronic messages that GTS uses to communicate with the US customs authorities as the customs declaration. In transaction SM31, call the view /SAPSLL/V_TLEEME in maintenance view for the message scheme CUS_US :

Make sure the electronic message ID (AES2) to the US customs authorities is configured as shown in the screenshot below: Check Message Definitions SPRO SAP

18 18 To display the details of electronic message ID, select the message ID and click Details. To change the customizing of electronic message ID, highlight the message ID and click Display Change to edit. Make sure the electronic message ID (AES2) to the US customs authorities is configured as shown in the screenshot below: Check Message Definitions SPRO SAP Global Trade Services SAP Customs Management General Settings Communication Processes Define Messages for Communication Processes Search for the message M0410 Export Declaration Option 2 (US). Find the message M0410 Export Declaration Option 2 (US) and double click on it.

19 19 Make sure all the values of the fields are maintained as shown below:

20 20 Then, verify the messages I Commodity Shipment Filing Response (US) and I Commodity Shipment Warning Response (US). I1560: I1570:

21 21 If you need to print the Shipper s Export Declaration (SED), check out the message P0360 and verify all the settings. Perform the same action to other printing documents needed.

22 Verify the Function Module for Incompletion Checks The incompletion schema should be configured to use the function module /SAPSLL/CHECK_US_CUS_AES2.

Customs Shipments and Customs Declarations 5.7 Customs Management Service Control You specify the possible status, status sequence and time zone for the authorizations.

22 22 Verify the Function Module for Incompletion Checks The incompletion schema should be configured to use the function module /SAPSLL/CHECK_US_CUS_AES2. This can be checked with the menu path: SPRO SAP Global Trade Services SAP Customs Management General Settings Document Structure Control Incompleteness Checks in Customs Shipments and Customs Declarations 5.7 Customs Management Service Control You specify the possible status, status sequence and time zone for the authorizations. You also assign process template to a legal regulation. SPRO SAP Global Trade Services SAP Customs Management Customs Processing Service Control Settings for Customs Processing Service

23 5.8 Set Up the Process Flow for Customs Processing with AES In order to declare export goods with the US government electronic customs system, Automated Export System (AES), you must define a

The process template is where electronic messages are attached for entering and sending a Customs Export Declarations.

23 Set Up the Process Flow for Customs Processing with AES In order to declare export goods with the US government electronic customs system, Automated Export System (AES), you must define a process flow that allows you to electronically communicate with the US customs authorities. The process template is where electronic messages are attached for entering and sending a Customs Export Declarations. If your export declaration is accepted, the customs authorities send you a confirmation with a registration number (confirmation number). Define Process Template You assign the message schema CUS_US for electronic messages to this process template. SPRO SAP Global Trade Services SAP Customs Management General Settings Communication Processes Define Control Settings for Communication Processes

In the example below, one activity (CUSEX) is set up for electronic messages and another one (CUSE2) for printed messages. Assign Messages to Activities You assign messages to activities.

24 24 Define Processes Define communication process with customs authorities, for example CUSEX for US export. Define Activities You can logically group messages into activities for the chosen process. In the example below, one activity (CUSEX) is set up for electronic messages and another one (CUSE2) for printed messages. Assign Messages to Activities You assign messages to activities. The screenshot below shows that messages for electronic communication with AES are assigned to the activity CUSEX. If you chose to have a single activity for the US export process, add the printed messages into this activity as well. If you prefer having another activity for all the printed messages, assign those printed messages to that separate activity.

In another words, the printed messages will not be executed until the process of electronic messages is completed.

25 25 Define Activity Sequences You define the activity execution order in the Subsequent Activities level. The example below shows that the process of electronic messages (CUSEX) is followed by the printed messages (CUSE2). In another words, the printed messages will not be executed until the process of electronic messages is completed. The drawback of this kind of customizing is that you will not be able to process the printed messages until the first activity is finished. If you do not like it, you have the option to configure a single activity with both electronic and printed messages.

26 Define Fall-back Activities Sequence Here, you define the default activity sequence in case the AES system is down, or the communication between GTS and AES is broken.

9 Define Rules for Message Output Once the PPF is properly configured, it is necessary to tell GTS which messages are expected to appear under the Communication tab of the export declaration.

26 26 Define Fall-back Activities Sequence Here, you define the default activity sequence in case the AES system is down, or the communication between GTS and AES is broken. The example shown here indicates that printed messages are the fall-back process. 5.9 Define Rules for Message Output Once the PPF is properly configured, it is necessary to tell GTS which messages are expected to appear under the Communication tab of the export declaration. This is specified in default rules of output determination: SAP GTS Area Menu SAP Customs Management Master Data Default Data Define Rules for Output Determination Select the procedure COEUS Messages Export U.S. and your legal regulation for US customs exports. At a very minimum level, you should select the outbound AES message (M0410); plus all the printed messages you expect to be processed:

27 5.10 Customs Code Lists Define Customs Code List Procedure The customs code lists are issued by customs offices.

The customs codes are officially valid values which enable customs authorities to precisely identify goods, means of transport and other general attributes for

27 Customs Code Lists Define Customs Code List Procedure The customs code lists are issued by customs offices. You need the customs codes for communications with customs authorities, and in particular for the exchange of electronic messages. The customs codes are officially valid values which enable customs authorities to precisely identify goods, means of transport and other general attributes for import and export processes. As a first step, a customs code list procedure is created so that custom codes can be assigned to it. SPRO SAP Global Trade Services Customs Management General Settings Customs Code Lists Define Procedures for Customs Code List

28 28 Assign Customs Code List In this step, you select which customs code lists are valid for your legal regulation. SPRO SAP Global Trade Services SAP Customs Management Customs Code List Assign Customs Code Lists Procedure to Legal Regulations Maintain Customs Code Lists Maintain values of customs code lists for legal regulations with the following menu path: SPRO SAP Global Trade Services SAP Customs Management Customs Code List Maintain Customs Code Lists for Legal Regulation Below are the values of the customs code lists Range of Goods. Maintain all other lists as needed.

29 For the customs code list Customs Status, you also need to assign the status to a process and a legal regulation with the menu path: SPRO SAP Global Trade Services SAP Customs Management

The partner function group controls which types of functions are displayed in the customs declaration.

29 29 For the customs code list Customs Status, you also need to assign the status to a process and a legal regulation with the menu path: SPRO SAP Global Trade Services SAP Customs Management Customs Code List Assign Customs Status to a Process and Legal Regulation 5.11 Partner Group Partner functions are combined in a group for US Exports. The partner function group controls which types of functions are displayed in the customs declaration. SPRO SAP Global Trade Services General Settings Partner Structure Define Groups of Partner Functions Select partner group PGCEUS - Partner Group for Export "Customs Processing" - U.S. and then double click on the folder Assign Partner Functions. Make sure you have all the partner functions included as per the screenshot below:

30 Please note that the latest mapping update from Seeburger supports the AES self-filer with employed forwarding agent scenario in SAP GTS 7.2.

30 30 Please note that the latest mapping update from Seeburger supports the AES self-filer with employed forwarding agent scenario in SAP GTS 7.2. To customize the scenario, you need to make sure: a) The Carrier has the partner function (SP by default) with the partner function type CUSFRW assigned, as the SCAC/IATA code in customs declaration is taken from the business partner master data of the Carrier. b) The Forwarding Agent has the partner function (CUSSTP by default) with the partner function type CUSSTP assigned. c) The partner function SP and CUSSTP are in the partner function group PGCEUS. Please refer to SAP Note on detailed explaination. As a summary, SAP GTS 7.2 supports the following AES filing scenarios: 1) AES self-filer without forwarding agent 2) AES self-filer with employed forwarding agent (new in GTS 7.2) However, SAP GTS 7.2 does not support the following AES filing scenario: 3) Forwarding Agent filing on behalf of USPPI (U.S. Principle Party in Interest) 5.12 Document Type Define Document Type Define the document type for Export Customs Processing services in SAP GTS Customs Management. SPRO SAP GTS SAP customs management General setting Document Structure Define Document Types

Processing services in SAP GTS Customs Management to document types from feeder system at Feeder System or Feeder System Group Level.

31 31 Activate the Document Type Activate the document type for Export Customs Processing services in SAP GTS Customs Management. SPRO SAP GTS SAP customs management General setting Document Structure Activate Document Types Assign the Document Type from Feeder Systems Assign the document type for Export Customs Processing services in SAP GTS Customs Management to document types from feeder system at Feeder System or Feeder System Group Level. SPRO SAP GTS SAP customs management General setting Document Structure Assignment of Document Types from Feeder Systems In the pop-up, select application level SD0C and enter the document type from the Feeder System or Feeder System Group that triggers the creation of the export customs declaration in GTS:

item category for Export Customs Processing services in SAP GTS Customs Management to an item category from a Feeder System or

32 32 Define Item Category Define the item category for Export Customs Processing services in SAP GTS Customs Management. SPRO SAP GTS SAP customs management General setting Document Structure Define Item Categories Assign Item Category Assign the item category for Export Customs Processing services in SAP GTS Customs Management to an item category from a Feeder System or Feeder System Group. SPRO SAP GTS SAP customs management General setting Document Structure Assignment of Item Categories from Feeder Systems

33 5.13 Setup Communication Process The following steps are used to customize how the outbound IDocs are sent

RFC Destination First, create a RFC destination of Connection Type TCP/IP with the transaction SM59.

33 Setup Communication Process The following steps are used to customize how the outbound IDocs are sent out of GTS to the EDI adapter and from there to the authorities, and vice versa for the inbound IDocs. RFC Destination First, create a RFC destination of Connection Type TCP/IP with the transaction SM59. Port In transaction WE21, create a port in the folder Transactional RFC with reference to the RFC destination defined above:

34 34 Partner Profile In transaction WE20, create a partner profile under the Partner Type GP for each customs office you plan to communicate with. The port for each customs office should have the outbound message type /SAPSLL/CUS_EXP assigned:

35 35 Also in transaction WE20, create a partner profile under the Partner Type GP for the IDoc adapter, such as Seeburger. Only one partner profile is needed for the IDoc adapter. The port for the adapter must have the inbound message type /SAPSLL/CUS_INBOUND assigned: 5.14 Print Control for Documents The following steps are used to customize the print control that enables you to create and print the Shippers Export Document. Other customs-relevant foreign trade documents can be customized in the same manner. SPRO SAP Global Trade Services SAP Customs Management General Settings Communication Processes Print Control for Foreign Trade Documents

36 5.15 Message and Printer Determinations The messages will be assigned to a legal regulation as

Without this definition, the message does not appear in the customs document.

36 Message and Printer Determinations The messages will be assigned to a legal regulation as well as a document type which is essential for the message determination in the customs document. Without this definition, the message does not appear in the customs document. Transaction code: /SAPSLL/PRNDT1 or the menu path: SAP GTS Area Menu SAP Customs Management Customs Processing - Import/Export

37 37 Message Parameters Message Determination

38 38 GTS uses the legal unit and user ID to determine which output device to use for printed messages. If you have specified this information, the printer name displays next to the printed message in the customs declaration under the Communication tab. Message Parameters Printer Determination

39 5.16 Defaulting Data Based on the business rules, GTS allows you to default data when generating

Defaulting data significantly speeds up the process of creating customs declaration documents.

39 Defaulting Data Based on the business rules, GTS allows you to default data when generating customs documents in customs management. Defaulting data significantly speeds up the process of creating customs declaration documents. SPRO SAP Global Trade Services SAP Customs Management General Settings Procedures for Defaulting Data Define Default Data for Document Fields, Messages, and Documents Default Rules

40 Once the rules are defined in the customizing, business user can set the declaration default values from the GTS Area Menu based on the procedure and legal regulation.

40 40 Once the rules are defined in the customizing, business user can set the declaration default values from the GTS Area Menu based on the procedure and legal regulation. Below is an example of how to default the office of departure based on the Foreign Trade Organization and the Legal Unit SAP GTS Area Menu SAP Customs Management Master Data Default Data Define Rules for Default Document Data

41 Sample IDoc of Customs Declaration Here is a sample outbound EDI message (X12 601) to the AES: Note: The transmitter ID (EIN) and password have been blacked out in the sample files for security reason.

42 42 Here is a sample inbound EDI (X12 824) message with acceptance status from AES. Here is a sample inbound EDI (X12 824) message with rejection status from AES.

43 43 6. Comments and Feedbacks Your feedback is very valuable and will enable us to improve our documents. Please take a few moments to complete our feedback form. Any information you submit will be kept confidential. You can access the feedback form at:

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