As discussed in the Part-1 of this blog, each member nation of the European community – EU28 is required to report the actual movement of goods to the customs authorities. The system that collects information and generates statistics on the dispatches and receipts constitutes INTRASTAT, the Intra-Community Trade Statistics – abbreviated ICTS or INTRASTAT records the actual intra-community goods movement for EU28 countries. The and statistics collected are used by the government departments to help in setting the overall trade policy create initiatives in new trade areas. For example, in the UK an exemption threshold is set at € 1,740,000 for receipts and € 290,000 for dispatches. The exemption threshold varies from country to country.
The penalty regime is strict. Any company that is persistently late, presenting inaccurate & incomplete data in the reports is liable to penalties and criminal offense. A single incidence penalty can be to the tune of € 2,500 or more.
Krypt can help companies in the EU28 of any size, with existing legacy systems or new ones to implement SAP GTS to facilitate & accelerate reporting of INTRASTAT transactions, be compliant and beat the strict penalty regime.
SAP GTS for simplified & quick Intrastat reporting
The Electronic Compliance reporting module within GTS is designed to help companies automate & submit statistical reports to the customs authorities. It provides standard functionality to file Intrastat declarations with the respective EU28 authority.
Companies that have already implemented ECC can leverage on seamless integration between ECC & GTS for quick & easy filing of Intrastat Reporting.
A user can enter relevant details for the dispatches and receipts in Intrastat declarations, along with the other necessary details. ECR is used to create an Intrastat declaration file in the country-specific required format, which is then uploaded to the national statistics authorities portal. The Intrastat data file format can differ across EU28.
The data in the Intrastat file is based on the logistics processes. The intra EU28 transactions are transferred via a work-list/batch job from ECC or legacy systems to GTS and are placed in the Intrastat bucket. The reports consist of details about each customer, vendor, 3rd party, and inter-transactions. It is also scalable to include intra-company transactions within the member nations.
In GTS, work-lists are generated every month for Dispatches (i.e. exports within EU member nations) & Receipts (i.e. imports within EU member nations). Customs management functionality in GTS can be integrated with ECR to declare products for Intrastat filing based on the commodity code. Using GTS we can aggregate goods movements for any reporting direction and declaration period or can choose to enter the items for each transaction.
These reports can be easily downloaded, thereafter sent to finance authorities within the organizations for reconciliation. The Finance team then shares the reconciliation summary with the GTS team.
GTS provides a dynamic & a scalable solution that allows for changes in the Intrastat declaration based on the reconciliation summary. It ensures filing of accurate & complete data with the authorities. It also helps EU28 based companies to submit Intrastat reports within the stipulated time & eliminates the need for using broker service and associated brokerage fees.
SAP GTS implementation advantages
Implementation of SAP GTS provides EU28 based companies with multiple advantages that can be briefly summarized as below:
- Standard reports (country-specific format) available for filing Intrastat
- Provision for reconciliation of transactions
- Ensures efficient use of resources
- Dynamic & scalable solution
- Localization of the solution (Example for CZ, IT)
- Provision to accommodate reporting for the special-administered territory of France, Spain, UK, Italy
- ECR ensures accurate & complete data is filed with the authorities
- It helps in speedy & timely filing
- ECR can be easily managed in-house by the company & ensures no broker service cutting on brokerage fee
- ECR in GTS ensures that a company is always compliant and thereby eliminate penalties while conducting smooth business operations within the EU.
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