Hi

[Former Member]

Hi,

What is customs duty? How it is calculated?

Here My project requirement is I need to calculate customs duty which is in percantage type determined from the material group. Here my question is what is customs duty? how it is calculated?

[Former Member]

hi

SAP Customs Management

Purpose

SAP Customs Management supports cooperation with the customs authorities in the following primary areas:

· Transit/Presentation

· Customs Processing for Import/ Export

· Classification

· Trade Document Service

· Since its main focus is the implementation of electronic transit and customs procedures, SAP Customs Management provides functions for processing imports and exports as well as communication and printing features.

SAP Customs Management supports the following country-specific, computerized customs procedures:

· The European Union transit procedure “New Computerized Transit System” (NCTS)

· The “Automated Tariff and Local Customs Processing System of the German Customs Authorities“ (ATLAS)

· The American IT procedure “Automated Export System” (AES)

· The Australian IT procedure “Integrated Cargo System” (ICS)

The Trade Document service enables you to print the import and export documents that you need. In Product Classification, you can assign the appropriate classification numbers to imported and exported materials.

Prerequisites

You have configured SAP Customs Management according to the information given in the Business Scenario Configuration Guide: SAP Customs Management in the SAP Service Marketplace at service.sap.com/instguides.

Process Flow

Transit/Presentation

In international trade, goods do not necessarily have to be processed at the border customs office, but instead can be processed later on when they reach their destination within a country. A transit procedure enables the customs authorities to identify and monitor the transit of the goods. SAP Customs Management allows you to participate in the EU’s new computerized transit system (NCTS) for handling your international trade activities. In this case, your transit must be based on the common transit procedures T1, T2, and T2F and carried out using the EU’s single administrative document. SAP GTS complies with the legal requirements for communicating via the NCTS, thus connecting your enterprise to the customs authorities of the 15 EU member states, the EFTA countries (Norway, Switzerland, and Iceland) and the Visegrad countries (Poland, Hungary, Czech Republic, and Slovakia).

As an authorized consignee, you can open the transit procedure by sending your transit declaration via SAP Global Trade Services to the relevant customs authorities. The transit documents are sent back to you in the same way, and you can then pass them on to the transport company. At the same time, the customs office of departure informs the customs office of destination about the expected arrival of goods.

As an authorized consignee, you can receive goods in the transit procedure. You can close the transit procedure with SAP Customs Management. You notify the destination customs office that the goods have arrived by entering the relevant MRN number (Movement Reference Number) in the Arrivals display screen. The customs office then grants you permission to unload the goods. You can now unload the goods. When you do this, you check the goods and their seals, and enter the results of this check in an unloading comment, which you send to the customs authorities. In response, the customs authority sends you a safekeeping notification. Your goods have now been presented.

During the safekeeping (holding) period, details of which are contained in the safekeeping notification, you can opt to submit a summarized declaration via SAP Customs Management. In this case also, you can establish direct electronic communications with the customs authorities. When you open a customs procedure, you send a summarized notification of completion to the customs authorities, which they then also send back to you. This closes the summarized declaration.

Customs Processing

SAP GTS enables you to handle customs processing for imports and exports electronically and in accordance with the relevant legislation. The standardized means of communication provided by SAP GTS make customs processing faster and simpler when computerized customs procedures are used. SAP Customs Management allows you to process your paper-based customs declaration electronically.

When you process exports, you can submit your customs declaration to the customs authorities, and use SAP Customs Management to print out the necessary customs documents. When you process imports, you can submit a summarized declaration, and initiate putting the goods into free circulation. When this is completed, you can trade the imported goods. You can choose between the following standard procedures and simplified procedures:

· Single Customs Declaration

· Notification Procedure

· Advance Notification Procedure

· Simplified Customs Declaration

· Advance Simplified Customs Declaration

· Supplementary Customs Declaration

· AWB (Single Customs Declaration, Air Cargo)

As well as working through the various customs procedures, you can also use the Duty Calculation service to calculate customs duties at the item level.

Classification

Customs authorities require an official material number for the export of goods from a country or the import of goods into a country. This number may be the commodity code, the import code number, the import list number, or, in the United States, the export control classification number (ECCN).

Many number systems in foreign trade refer to customs nomenclatures. As a rule, every number system has a fixed structure that can be stored as a schema in the system, and in this way, you can manage your ECCNs, export list numbers, cross-country number systems, commodity codes, import code numbers, harmonized tariff system numbers, and CAP product numbers.

For classification purposes, the numbers have to be assigned to imported and exported materials.To streamline this process and provide the user with decision-making support, product classification in SAP Customs Management provides a keyword search and a phonetic search for appropriate classification.

You can use SAP Customs Management to upload the European Customs Tariff and the Integrated Tariff of the Community (TARIC).

Trade Document Service

You can use the trade document service feature of SAP GTS to print, in accordance with legal requirements, documents from the EU shipping legal area and the USA export/goods origin legal area. The system automatically generates the following documents:

· Export Declarations (EX, EU; COM)

· Transit Documents (T1, T2)

· Shipper’s Export Declaration (SED, AES4).

· Certificates of Origin (US, NAFTA)

· Letter of Instructions (US)

· Inward Cargo Manifest (US)

· Entry/Immediate Summary (US)

· Entry Summary (US)

· Export Packing List

SAP GTS can retrieve the relevant foreign trade documents for each business transaction. Using central print data procurement with a standardized interface, the information required for a document is determined automatically. In addition, you can group together several deliveries into one foreign trade document. This reduces the time required for the communication process with the customs authorities and improves data quality.

[sailaja_vadlamudi]

Hi

Go through this link

http://help.sap.com/search/highlightContent.jsp

Thanks

Sail