Set Up Preference Processing in SAP ECC and SAP Global Trade Services

  • by Rajen Iyer, Cofounder and CTO, Krypt, Inc.
  • December 15, 2009
See how to set up and perform preference processing within your global customs practices through your supply chain in both SAP ERP Central Component and SAP GRC Global Trade Services. Preference processing allows you to capture and determine the duty preference, drawback, and allowance based on the country of origin and tariff for the product.
Key Concept

Vendor declaration provides you with the documentation required when you want to declare to the customs authorities the country of origin for the product imported into a country. Similarly, when you export out, your customer might need that information to import into their country, so you provide them with the customer declaration.

SAP GRC Global Trade Services includes functionality called Preference Processing, which helps you maintain customs priorities within your system and eases your exporting operations. It allows you to separate countries with which you have trade agreements from banned countries, as well as preferred countries based on importing and exporting tax rates.

In a previous article, I walked you through configuration steps to set up communication between your SAP ERP Central Component (SAP ECC) and SAP GRC Global Trade Services systems, as well as some Risk Management settings within SAP GRC Global Trade Services.

Rajen Iyer

Rajen Iyer is the cofounder and CTO at Krypt, Inc. Rajen has written several in-depth, best practice articles, white papers, patents, and best-selling books on SAP Logistics and SAP Global Trade Services, including Effective SAP SD and Implementing SAP BusinessObjects Global Trade Services. He is also an invited speaker at industry conferences.

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