© 2016 SAP SE or an SAP affiliate company. All rights reserved. 1Public

Hong Kong AEO

AEO is a concept under the World Customs Organization

(WCO) SAFE Framework of Standards to Secure and

Facilitate Global Trade (SAFE Framework). It represents a

Customs-to-Business partnership to enhance international

supply chain security and facilitate movement of legitimate

goods.

Hong Kong AEO Programme

The Hong Kong AEO Programme, with its successful pilot

run since 2010, is administered by the Customs and

Excise Department under an open and voluntary

certification regime.

With a fully fledged AEO programme in place, the

Department will explore opportunities for developing

mutual recognition arrangements (MRAs) with other

Customs administrations.

OBOR Powered by SAP Global Trade ServicesDavid Liu, GC GRC COE

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public

Global Trade Violation is Expensive

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Customer

SAP Global Trade ServicesRun global trade

Ensure proper screening of restricted or

denied parties with in-line process

blocking and release

Leverage Foreign Trade Zones, Processing

Trade in China, Bonded Warehousing,

IPR/OPR, Intrastat, EMCS, and others

Leverage any free trade agreement with

preference determination and vendor /

customer declaration handling

Effectively manage import compliance,

classification, inbound trade finance and

customs services with direct filing

Manage export compliance, classification,

outbound trade finance and customs

services with direct filing

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Customer

SAP GTS – Customs InterfacesUnmatched model to support your global footprint with a single application

(*) Paper based filing / declaration management

Standard, Certified Customs Interfaces

Australia

Belgium

China1

Denmark

France

Germany

Netherlands

New Zealand

Spain

Sweden

Switzerland

United Kingdom

United States

Electronic Customs Reporting (ECR) or Intrastat

Austria

Belgium

Bulgaria

Croatia

Czech Republic

Denmark

Netherlands

France

Finland

Germany

Hungary

Luxemburg

Ireland

Italy

Poland

Portugal

Sweden

Spain

Slovakia

Slovenia

Romania

United Kingdom

1 Paper-based filing or declaration management

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer

SAP Global Trade ServicesStreamlined: More than 25 integration points with SAP ERP

Integration with SAP Global Trade Services is a key differentiator.

Product and businessmaster data(customer)

Sales order Delivery (Pro forma)

invoice

Product classification(HTS1, ECCN2,

Schedule B, and so on)

Export/import compliance check,

Letter of credit (L/C) check

Export/import compliance check,Bonded warehouse

Duty calculation

Customs communication,Document printing,

L/C-compliant printing

Distribution

process

SAP Global Trade

Services

Product and businessmaster data(customer)

Purchase order Shipping notification Goods receiptProcurement

Process

Export process

Import process

1 Harmonized Tariff Schedule 2 Export Control Classification Number

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer

Cost of integrating third-party solutions

Analysis of the most basic interfaces between global trade services

and enterprise resource planning to support processes such as

classification, export compliance, and import compliance identified the following:

Average cost to build each custom interface

10 at $64,000 each $640,000

19 at $16,000 each $304,000

Cost to build $944,000

29 interfaces

Does not include ongoing maintenance of the interfaces

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Customer

Automate trade compliance

SAP Global Trade Services Supports Your Vision for Global Trade

6,000–8,000United States export self-filings to AES managed by half of a full-time resource

>2,500SKUs reviewed for NAFTA eligibility, covering over 20,000 transactions annually

7Regional free-trade agreements managed by SAP GTS

190,000Bills of materials analyzed both annually and on demand for the North American Free Trade Agreement (NAFTA)

300%Increase in vendor response with automated dunning of long-term vendor declarations

>7,000Transactions screened daily against restricted-party lists

2–3 millionParties screened with greater uniformity by using a common approach

From current customer deployments using the

SAP Global Trade Services (SAP GTS) application1

AutomatedForms (Adobe) from SAP GTS and the SAP ERP application, including United States Department of Agriculture (USDA) certificates and shipper’s letter of instruction

1 Interviews conducted in 2015

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Customer

SAP Global Trade Services Supports Your Vision for Global Trade

Drive consistency across global operations

IncreasedVisibility and uniformity for screening and classification activities globally

UtilizedGlobal Trade Services capabilities across 15 countries and more than 150 plants and warehouses around the world

IncreasedAccuracy, productivity, and efficiency across trade processes

ImprovedConsistency of standard trade processes worldwide

>18Countries supported for classification within SAP GTS, including the Association of Southeast Asian Nations (ASEAN) region

Standardized Import, export, and license determination management, including classification processes for more than 32 countries

ReplacedInefficient, manual export and import processes

IntegratedWith freight forwarders and customs-certified systems

MaximizedReconciliation and data-validation activities with trusted data and automated information flows

DeployedAn automated global trade platform for centralized sanctioned-party screening, embargo checks, classification, licensing, and preference

From current customer deployments using SAP Global Trade Services1

1 Interviews conducted in 2015

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Customer

SAP Global Trade Services Supports Your Vision for Global Trade

LowersTotal cost of ownership using existing SAP resources to support SAP GTSImproves

Consistency and lower costs by centralizing the management of classification and screening processes through a shared-services team

AutomatesSelf-filing for exports in the United States, the Netherlands, Singapore, and Germany

Reduces Duties by leveraging the North American Free Trade Agreement (NAFTA) and European Union trade agreements

US$1.4 millionIncremental annual savings by processing NAFTA through SAP GTS (~8 million overall)

$240,000Reduction in annual costs with certified customs interfaces for self-filing in the United States (Automated Export System: AES) and Germany (Automatic Rate and Local Customs Clearance System: ATLAS)

DrivesAdditional savings through duty avoidance by using bonded warehouse functionality in Germany

1 Interviews conducted in 2015

Drive bottom-line savings From current customer deployments using SAP Global Trade Services1

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Customer

SAP Global Trade Services Supports Your Vision for Global Trade

FewerSupply chain disruptions due to automation of trade activities

ReducedTactical, daily work for trade compliance professionals

LeveragedStrong IT and business partnership to produce one of the most successful SAP software implementations at this organization

ZeroIncrease in headcount to support new processes with SAP GTS

ImprovedGlobal trade-compliance team productivity thanks to management-by-exception approach

CreatedA proactive environment across the organization,

building trade compliance into product-planning

and release strategies

Elevate global trade in the organizationFrom current customer deployments using SAP Global Trade Services1

1 Interviews conducted in 2015

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Customer

Johnsonville Sausage: Bringing Big Taste to Cooking

Enthusiasts Worldwide with SAP® Global Trade Services

CompanyJohnsonville Sausage, LLC

HeadquartersSheboygan Falls, Wisconsin

IndustryConsumer products

Products and ServicesFresh and smoked-cooked sausage products

Members1,600

Web Sitewww.johnsonville.com

Objectives• Support international business growth without increasing full-time staff• Replace inefficient, manual export processes• Integrate with freight forwarders and customs-certified systems

Why SAPSelected the SAP® Global Trade Services (SAP GTS®) application for functionality and reduced longer-term total cost of ownership after blueprinting with a competitive cloud-based provider

Resolution• Simplified landscape with the integration of SAP GTS to the SAP ERP application• Utilized existing reporting tools from SAP• Automated forms coming from SAP GTS and SAP ERP including USDA certificates and

Shipper’s Letter of Instruction• Used flexible and easy-to-maintain Adobe forms available with SAP GTS• Minimized reconciliation and data validation activities with trusted data and automated

information flows

Future plans• Expand solution usage to include import functionality, sanctioned-party screening, and

export self-filing with U.S. Customs• Deploy SAP GTS with the SAP S/4HANA suite

ReducedTactical, daily work for

trade compliance

professionals

LowerTotal cost of

ownership,

utilizing internal

resources

supporting SAP GTS

FewerSupply chain

disruptions

due to automation of

trade activities

“When evaluating global trade solutions, consider all costs, as some costs are buried in

integration requirements and are affected greatly with an increase in volume and document

counts, as well as change fees. With SAP GTS, we did not have these additional costs.”

Jason Beyersdorf, IT Business Partner, Johnsonville Sausage LLC

40740 (16/01) This content is approved by the customer and may not be altered under any circumstances.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Customer

Lenovo Manages Cross-Border Trade

with SAP Global Trade Services

Company or OrganizationLenovo Group Limited

IndustryHigh Tech

Products and ServicesPersonal computers and mobile internet devices

Employees

27,039

Revenue US$21 billion

Web Site

www.lenovo.com

The company’s top objectives

Manage global trade business following international business expansion

Reduce risk by meeting regulatory requirements

Replace costly legacy systems

The resolution

Implemented the SAP Global Trade Services application integrated with the SAP ERP application and replaced an expensive legacy system

Streamlined import and export processes by integrating with brokerage services

Completed initial implementation in 12 months and subsequent rollouts in 6 to 8 months

The key benefits

Improvement of trade management business process efficiency with standardized procedures in over 40 countries and 26 distribution centers

Streamlined management of rapid increase in business volume

Reduced leasing costs of legacy systems

“Following our global expansion, SAP Global Trade Services has helped Lenovo

to manage our cross-border trade effectively, mitigate compliance risks, and

reduce operational costs.”

Xiaoyu Liu, GM of Global Application Development, CIO/BT Organization, VP Lenovo Group Limited

2,000%Increase in transaction volume

15Leased legacy systems replaced.

$12 millionLeasing costs saved annually

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Customer

Supported by A Worldwide Partner Ecosystem

Data Providers

System Integrators and Global Trade Experts

Technology Partners

Metinform

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Customer

Over 2,000 Customers

Experience in over 25 industries

In more than 130 countries

SAP is the leading provider of global trade management

software.1 SAP has decades in the global trade arena.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Customer

1ARC Advisory Group

Global Trade Management Global Market Research Study – Market Analysis and Forecast Through 2019

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Customer

SAP is the Leading Provider of Global Trade Management Software with decades in the Global Trade Arena

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Customer

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate

company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its

affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and

services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as

constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop

or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future

developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time

for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-

looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place

undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Customer

© 2016 SAP SE oder ein SAP-Konzernunternehmen.

Alle Rechte vorbehalten.

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche

Genehmigung durch SAP SE oder ein SAP-Konzernunternehmen nicht gestattet.

SAP und andere in diesem Dokument erwähnte Produkte und Dienstleistungen von SAP sowie die dazugehörigen Logos sind Marken oder eingetragene Marken der

SAP SE (oder von einem SAP-Konzernunternehmen) in Deutschland und verschiedenen anderen Ländern weltweit.

Weitere Hinweise und Informationen zum Markenrecht finden Sie unter http://global.sap.com/corporate-de/legal/copyright/index.epx.

Die von SAP SE oder deren Vertriebsfirmen angebotenen Softwareprodukte können Softwarekomponenten auch anderer Softwarehersteller enthalten.

Produkte können länderspezifische Unterschiede aufweisen.

Die vorliegenden Unterlagen werden von der SAP SE oder einem SAP-Konzernunternehmen bereitgestellt und dienen ausschließlich zu Informationszwecken.

Die SAP SE oder ihre Konzernunternehmen übernehmen keinerlei Haftung oder Gewährleistung für Fehler oder Unvollständigkeiten in dieser Publikation.

Die SAP SE oder ein SAP-Konzernunternehmen steht lediglich für Produkte und Dienstleistungen nach der Maßgabe ein, die in der Vereinbarung über die jeweiligen

Produkte und Dienstleistungen ausdrücklich geregelt ist. Keine der hierin enthaltenen Informationen ist als zusätzliche Garantie zu interpretieren.

Insbesondere sind die SAP SE oder ihre Konzernunternehmen in keiner Weise verpflichtet, in dieser Publikation oder einer zugehörigen Präsentation dargestellte

Geschäftsabläufe zu verfolgen oder hierin wiedergegebene Funktionen zu entwickeln oder zu veröffentlichen. Diese Publikation oder eine zugehörige Präsentation,

die Strategie und etwaige künftige Entwicklungen, Produkte und/oder Plattformen der SAP SE oder ihrer Konzernunternehmen können von der SAP SE oder ihren

Konzernunternehmen jederzeit und ohne Angabe von Gründen unangekündigt geändert werden.

Die in dieser Publikation enthaltenen Informationen stellen keine Zusage, kein Versprechen und keine rechtliche Verpflichtung zur Lieferung von Material, Code oder

Funktionen dar. Sämtliche vorausschauenden Aussagen unterliegen unterschiedlichen Risiken und Unsicherheiten, durch die die tatsächlichen Ergebnisse von den

Erwartungen abweichen können. Die vorausschauenden Aussagen geben die Sicht zu dem Zeitpunkt wieder, zu dem sie getätigt wurden. Dem Leser wird empfohlen,

diesen Aussagen kein übertriebenes Vertrauen zu schenken und sich bei Kaufentscheidungen nicht auf sie zu stützen.