WALLDORF, Germany, April 21, 2014 /PRNewswire/ -- With almost half of all imports coming into China attributed to processing trade,* the customs procedure under which certain goods can be brought into China for export, duty and value-added tax free, it is more important than ever for businesses to be able to efficiently and transparently work with China. SAP AG (NYSE: SAP) today announced the availability of a new application to help centralize processing trade activities, SAP® Global Trade Services, processing trade in China.
In the last 20 years, processing trade in China has increased dramatically. In 2010, 47 percent of exports and 30 percent of imports were attributed toward processing trade.* Companies face multiple challenges to comply with processing trade regulations, including performing reconciliation, managing customs bills of materials, tracking inventory and managing customs declarations with matching business transactions. SAP Global Trade Services, processing trade in China, helps companies minimize risk and reduce duties by centralizing processing trade activities. At the same time, it helps improve efficiency by automating imports, exports and e-manual management.
"Processing trade is a typical production model for manufactures in China. Besides the manpower, process and time consumed to deal with certain goods, companies today are seeing compliance risk when they define with customs if the goods are bonded or not," said Cao Yu Jie, research director, CCW Research. "SAP's first localized processing trade solution for China will help companies to obtain work orders and goods information directly by processing different codes and processes in the ERP system. Trading companies in China therefore are able to save time, lower cost and improve efficiency, which lies at the center of bonded processing. The China processing trade solution by SAP is a best practice on how IT can help with process optimization for Chinese enterprises. The market is confident and expects more localized solutions from SAP to solve business challenges in China."
In 2013, the first localization of SAP Global Trade Services in China was released to help companies to comply with general trade regulations. Companies are already using the solution to manage classifications including supervision codes, declaration elements, letter of credit management; legal control, generating export declaration forms and claiming VAT Refunds. With the new solution, SAP Global Trade Services is completely ready with both General Trade and Processing Trade.
"China has become the largest goods trading country in the world," said Mark Gibbs, president of SAP Greater China. "Processing trade is important for companies importing into China as well as companies based in China. SAP Global Trade Services, processing in China, helps companies to better manage customs e-manual and handbook, electronic customs clearance and bonded warehouse management; significantly improve the efficiency of customs clearance; and reduce trading compliance risks."
* "China's practice in statistics in goods for processing" [PDF], United Nations statistical commission, October 2011
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SOURCE SAP AG