E-Globalization Simplification for Belgium Customs Using SAP GTS

INTRODUCTION

E-Globalization has replaced the file-based approach, which enabled declarants to submit periodic returns for all imports under Entry in Declarants Records. For Importers that bring product into bonded warehouses, the release to free circulation from bonded I.e. procedure code 4071 declarations are required to use E-globalization. Beginning February 1, 2022, E-Globalization declarations have required electronic submission to Belgian Customs. One significant contrast between the two methods is the level of information included in the submissions. E-globalization declarations are more comprehensive than the past reduced content in the file format.

WHAT IS E-GLOBALIZATION?

E-Globalization is the process of consolidating customs declarations of a company on a periodic basis rather than sending individual declarations. Usually, the period covers a maximum of one month (1st to last calendar day of the month) and can have a maximum of 999 items or articles. E-Globalization declaration provides a detailed information of the goods which are imported into the EU at a specific point in time for a specific shipment/transport. To ease the import procedure, some large declarants are allowed to submit one “globalized” declaration for all the goods they imported during a certain period. This implies that the goods have already been imported/entered the EU at the time the declaration is received by Customs. Declarants must however keep a ‘log’ in which they record all transactions related to the globalized declarations. These declarations are also known as “Periodic” declarations. Only AEO (Authorised Economic Operator) compliant companies are allowed to enter E-Globalization declarations.

E-GLOBALIZATION USING SAP GTS

Belgium Customs allows AEO-certified companies to use electronic supplementary declarations to process their Entry in Declarants Records. SAP GTS provides features and functionalities to manage this E-Globalization declaration. GTS offers a standard solution to extract the required data and submit it in the format required by Belgium Customs. It helps to manage these declarations more efficiently and effectively, ensuring compliance with customs regulations and reducing the risk of penalties or fines for non-compliance.

ADVANTAGES OF E-GLOBALIZATION:

Allows companies

Allows companies to receive or remove goods without the need to file a declaration in real time

Allows goods

Allows goods movement without waiting for release message from Customs

Immediate validation by Customs

Immediate validation
by Customs

Saves time in the e-filing process

Saves time in the
e-filing process

FLOWCHART OF E-GLOBALIZATION DECLARATION

The process to send E-Globalization messages will be executed in three steps in SAP GTS:
1
Initial Message (SADGlobImportInit-message)

The initial message triggers the process of globalization for a given period. This has the header information which is valid for all items which will be processed in the subsequent messages.

2
Subsequent-declaration messages (SADGlobImportSubSequent-message)

This allows the submission of item master data as sub-declarations. Belgium Customs prefer sending this per shipment due to customs risk analysis and to avoid performance issues. This message can be sent multiple times without waiting for the end of the period. PLDA will calculate the debts and will send you a response message (with statement of calculation of payables based on the dates of the relevant message)

3
Final message (SADGlobImportFinal-message)

This is the final message sent to customs at the end of the globalization period to end the globalization period.

All these messages are processed in XML format. To link all the above-mentioned messages, a Local Reference Number (LRN) is used. Subsequent declarations can have a maximum of 999 items, and it will have a sequence number in addition to LRN. PLDA will compile the globalization declaration, it will pay the debts books, deliver the statistics etc.

In addition to the above-mentioned messages, SADGlobCorrection message can be sent to correct an already sent subsequent message. It will have reference to the LRN and the sequence number of the subsequent declaration to be corrected. Only update or removal of items are shared with Belgium Customs system PLDA (Paperless Customs and Excise) in this correction message. Any new item should be processed with a new subsequent-declaration message and not using a correction message. To distinguish correction or new subsequent declaration, a modification indicator is used.

CONCLUSION

In conclusion, the implementation of E-Globalization for Belgium Customs using SAP GTS is a significant step towards simplifying the customs declaration process for AEO-certified companies. This process enables consolidated customs declarations to be submitted digitally on a periodic basis, resulting in reduced filing time and increased efficiency. Using SAP GTS, the e-globalization declaration process can be managed more effectively, ensuring compliance with customs regulations, and reducing the risk of penalties or fines for non-compliance. The three-step process of sending E-Globalization messages, namely the initial message, subsequent-declaration messages, and final message, is processed in XML format, and the PLzDA calculates the debts and sends a response message. Overall, the adoption of E-Globalization simplifies the customs declaration process, saves time, and improves compliance with customs regulations.

AUTHOR
Divya Nair

SAP GTS Consultant

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