Export Scenario-SD-Plz Reply

[Former Member]

HI,

I have one scenario here for Exports.

Company Name is ABC

Customer NAme is 123

Company Is in Bangalore, Customer is in India but customer is not situated in SEZ or 100% EOU.So the scenario is not Demed Export & i am considering this scenario as Merchant Export ,correct me if i am not wrong.

Scenario;- ABC company sells Food Products to customer 123, but inturn Customer 123 exports what ever purchased from ABC company. So customer 123 gives CT1 bond(Bond B17-In sap term Fixed Bond) & ARE-1 also he sends to Company ABC. While selling stocks to thi scusomer, ABC company Fills & sends ARE-1 along with all necessary export formalities.Customer 123 declares to Govt, that he is exporting the products of ABC company. So he takes Fixed Bond Pertaining to the Transaction.

For EG:- Basic price id 10 lacs & Excise duty is 1.5 lacs. So customer takes Fixed Bond for 1.5 lacs & send to ABC company as i mentioned earlier along with ARE-1 Forms.

So, Am considering This as Merchant Exports not Deemed exports & in SAP am creating Sale Order to Excise Invoice, then Fixed bond Creation, then with reference to Excise invoice & Bond, Am creating ARE-1.

My excise duty components here are- BED, CESS, ECS,HECS... & all these values are flowing properly in J1IIN.

My Queries:--

1. While creating ARE-1, CESS is not flowing , i mean CESS field itself is not visible in my ARE-1's. We are Implementing ECC 6 here.

2. When i refer Fixed Bond & create, Post & Update ARE 1, Bond value is not decreasing , inspite Bond value is increasing & even in Bond summary Report. Bond Balance is not Coming Down.

3. Do we need to create ARE-1 in SAP, for ARE 1's sent by customers.

4. Am considering this scenario as merchant Export, is this Right,??. i.e, the procedure what ever am following.

5. Even if i take ARE-1 Standard SAP Out Put Print out , Excise Duties are not flowing at all & even Bond Balance are not flowing Properly.

But in Standard SAP- 1 is direct Exports where in we do ARE-1 & another one is Deemed Export where in we create ARE-3.

But i feel my scenario doesnt fit in to either of the 2 as per standard SAP.

SD Guru's Plz reply to My Queris pertaing to Export .

Thanx & Warm Regards,

Ramesh Reddy

[Former Member]

Customer will send his ARE1 number which has got nothing to do with your SAP system. This ARE1 has to be manually filled out and sent to the customer and there is no need to generate ARE1 from your SAP system. You still have to create ARE3 document in your SAP system.

Regards,

GSL.

[dnyandeoh_ainarkar]

Hi!

This is considered as Deemed Export and not Merchant Export.

Kindly take help of your Basis experts and apply the patch level to SAPKH60013.

This patch level contains all the necessory changes required to complete all the statutory requirement as mentioned by you below.

After so many modifications, ARE formats are in shape and all your queries will be resolved after updating the patch level.

Regards,

Dnyandeo H. Ainarkar

[Former Member]

1) The scenario explained by you looks like Deemed export. ABC is selling to a customer 123 in India who is going to export the goods. 123 provides CT form and ABC has to created ARE3 at the time of removal.

2) Normally only BED , ECS and SECess are applicable. Check whether CESS is really required. I havent worked on CESS so I dont have much idea.

3) CT form should not be created as a Bond. It should be created as a license using J1ILIC01.

Regards,

GSL.

[Former Member]

Hi,

I shld have considered that as Deemed Export but, here Customer 123 i ssend ARE-1 & ARE-3 , they are not filling at all.

Regards