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Sales to SEZ - Export Documentation

Former Member
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Hi

Can you please clarify on the following points.

a. In J1iin, system is picking only Deemed Exports in Invoice type. Is this correct?

b. Since the SEZ customer, is not to be charged any duties or levies, no excise conditions are calculated. Therefore, no excise entries will flow in excise document and as well as ARE1 document.

I am new to this process. Any information that you provide will be very helpful.

Regards

R.Srinivas

Accepted Solutions (0)

Answers (4)

Answers (4)

krishna_mohan34
Participant
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This message was moderated.

Former Member
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The following is the procedure:

a. Set up a new sales area

b. Create a new pricing procedure marking BED, ECESS and HECESS as all statistical. This is required for information to flow into the ARE1 document.

c. In J1iin processing, click the calculator button to set appropriately.

d. Generate the ARE1 document normal way.

Regards

R.Srinivas

Former Member
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Dear srinivas,

SEZ supply is as good as Physical export , only difference is customer is within india.

1. Customer has to provide 'Bill of Export' .

2. You need to define one form in below node

SPRO -- Logistics - General - Tax on Goods Movements -- India -- Master Data - Define Form Types , here the right most TaxCl4Cust will be maintained with one single charector ( any thing you want ).

3. You maintain all duty component aginst form type as '0' % through VK11 .

4. While making sales order - header -billing - Alt tax cl - 4 will be set with this single charector flag.

By doing this your duty will not be calculated as you are communicating to the system that this is 'Duty forgone ' scenerio.

Then normal delivery - billing - J1IIN .

During ARE , you need to debit the bond as this is a duty forgone case.

Just try and post your quries as and when u get the problem .

If it is useful information, please rate.

saravanan

Former Member
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Dear Saravanan

Thanks for your input.

We need to execute the shipment under Letter of Undertaking. The amount therefore need not be adjusted against a bond value.

If no values for excise will flow into the billing document, as suggested by you, how will the excise values flow into the excise invoice and ARE?

Regards

R.Srinivas

Former Member
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OK. If it is through Letter of Undertaning , you do not need to debit bond, but still you can define the form as LOT as i said earlier .

Your question :how will the excise values flow into the excise invoice and ARE?

As this is duty forgone case , your excise invoice will not reflect with any duties , only in ARE , Your dutforgone amount should automatically flow , if not please find out user exit and do coding with the help of ABAP er . ( Sorry , presently i do not know the user exit , please check with ABAP er )

In the same way , since you are not going to debit bond , mask the bond input field conditionally in case of SEZ ( check customer land from KNA1, if it is IN ,then SEZ case and VBRK-TAXK4 where u have maintained the form indicator , u have to go for hardcoding in the prog ) .

Hope , this gives an idea of SEZ config flow .

saravanan

Lakshmipathi
Active Contributor
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Dear Srinivas

a) Its all based on the settings you maintained in IMG Path -- Logistics-General --> Tax on Goods Movements --> India --> Business Transactions --> Outgoing Excise Invoice --> Maintain Default Excise Group and Series Group. There for the combination of your sales area, shipping point, plant, whatever you maintain under the tab "Export", that will be defaulted as your Excise Transaction Type.

b) Though I have not dealt with SEZ process, what I can say is that instead of excise duty, customs duty you have to pay in case you made domestic sales and no customs duty in case of exports. Also the excise document is ARE-3 I believe and not ARE-1 as mentioned.

thanks

G. Lakshmipathi

Former Member
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Dear Lakshimipathi,

The following are information provided by the customer, who is in a SEZ.

a. No excise duties are to be levied

b. No CST to be levied

c. No Service tax to be levied

d. Party will not issue CT3

e. Shipment to be against ARE1

This would mean that

1. The condition types needs to be set to statistical, as BED, ECS and SECESS needs to flow into j1iin, as no excise values should be posted.

Presently, it is noted that:

1. In J1iiN, when invoice type is selected, system gives the alternate as DEEMED EXPORT. It is not allowing to select BOND, NO BOND or LUT.

2. If the customer is however not in India, system allows options for the others.

3. However, we are able to create, ARE1 with reference to the above excise invoice raised.

Reading other posts, it is asked to make the condition type statistical.

I hope I am reasonable in my assumptions. It will be of help if you can advice more details.

Regards

R.Srinivas

Lakshmipathi
Active Contributor
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Dear Srinivas

Thanks for the inputs.

1) Since the customer dont want duties, taxes to be levied, maintain as satistical in V/08 for those condition types. Also you need to maintain the respective material code and customer code in j1id then only, the respective values will flow into ARE3 form.

2) With regard to selection of Excice type (Bond, No Bond etc), go to IMG -- Logistics-General --> Tax on Goods Movements --> India --> Business Transactions --> Outgoing Excise Invoice --> Maintain Default Excise Group and Series Group. There under the tab "Export", maintain "U" for the combination of sales area, shipping point and plant. While doing j1iin, once you click on "Utilization" button, you have the option to choose the Excise Invoice Type.

thanks

G. Lakshmipathi