How duty type will be determined in Declaration based on the Tariff Numbers

[Former Member]

Hello All,

Issue is : for the Tariff Number, we have two valid duty records B100(Third country duty ) & B400 (Suspension of duty).

Instead of B100 , system is picking B400 and failed to send to customs, Since we don’t use B400 .

I am not able to get the root cause why B100 is not picked by the system. Kindly give some inputs.

As a workaround we are deleting the B400 records and trying to fix with B100.

Thanks In advance.

Thanks

Diwakar Reddy

[former_member215181]

Hi Diwakar,

Which country are we talking about here?

Generally speaking, the system is set up first to check B400, in case duty suspension is available - then there is no need to look further.

After that, B200 is generally checked, in case Preferential duty rates may be used.

If not, then B100 is evaluated for standard duty.

Hope that helps.

Regards,

Dave

[Former Member]

Diwakar,

Just to add more information to the above.

Besting in your case would be the following options:

Check the configuration you have in place for Duty Structure for Imports -

SPRO - Global Trade Services - Customs Management - Calculation of Customs Duty - Define Customs Duty Framework - Duty Structure for Imports

Whatever the order you define here will be followed while levying the duty on your declaration.

If you can not replicate the situation on your import declaration for any reason, you can replicate it via duty simulation functionality.

Please do let me know if you have any further questions.

[Former Member]

Thanks Dave and Rajesh for the reply.

@ Dave - This is for Sweden.

Will check the above and update you all.

Thanks

Diwakar Reddy

[Former Member]

Hi Dave and Rajesh,

I have verified in my system and it was maintained same as you explained.

50 B400 Suspension of Duty

70 B200 Preferential Customs Duty

80 B100 Third-Country Duty

How to restrict the B400 ,  since we dont use at all for our legal regulation.

What are all the steps involved to restrict from Exclusion requirements or any other way is available?

KIndly suggest.

Thanks in Advance.

[former_member215181]

Hi Diwakar,

You can create your own Requirement using BAdI /SAPSLL/CUTY_CALC, Method REQUIREMENT_CHECK, and configure it in the IMG "Configure Control Settings for Customs Duty Calculation" activity.  You assign your new Requirement to the 'B400' Duty Type in your Calculation Profile (create your own, rather than disturb the standard one), so that B400 duty rates are then ignored unless the requirement is met.

At first sight it seems complicated, but it is actually quite simple and works very well.

Good luck.

Regards,

Dave

[Former Member]

Diwakar,

The order seems correct from the normal functionality.

Duty Suspension takes precedence -  given the nature of the transaction ( i.e. Country of Departure and Country of Destination. and Tariff Number  ) certain Tariff numbers might be under temporary or permanent Duty suspension. In that scenario, system ends the duty calculation at that level itself.

If the above mentioned combination does not have any duty suspension then it will move to next i.e. Preferential Duty- if it finds any preference information in the system it will apply that.

Lets say you don't have the preference also then it will apply the third country duty and so on.

In your scenario, if system is applying duty suspension and you think that is not correct then you have to check the Tariff General published by Sweden customs(Hoping that is common across the Union).

Also, if possible provide me the first 6 digits of the Tariff you are using and the data provider.

I can give a try and see how the duty rates are published for that Tariff number. Thanks.

Regards

Rajesh

[Former Member]

Thanks Dave and Rajesh for your reply again.

@ Rajesh : Here is the 10 digits code for your reference (6307909899).

Thanks in advance.

Thanks

Diwakar Reddy

[Former Member]

Hey,

I don't see this Tariff under duty suspension list, so there shouldn't be any duty loaded against it in GTS.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:354:0201:0318:EN:PDF

You might want to check the how the duty rates are uploaded and if you have any duty loaded against this tariff under duty suspension then you should ask the content provider.

If there is no duty supplied, check external duty type mapping in the system.

Regards

Rajesh

[Former Member]

Thanks Rajesh for the updates.

Recently we uploaded the latest version of files and that might causing this issue.Will check with the Data Providers and update you all in case if i found some thing from them.

Thanks you both for your valuable suggestions.

Thanks

Diwakar Reddy