Setting Up the Customs Duties Foundation

To set up the customs duties foundation, use these components: Organization Details (ORG_RGSTN_DTL),Harmonized Tariff Code (HRMN_TARIFF_CD), Item Definition (ITEM_DEFIN), Automatic Numbering (AUTO_NUM_PNL), Customs Benefit Scheme (CSD_BENEFIT_SCHEME), Customs Item SION (CSD_ITEM_SION) and Accounting Entry Template (ACCOUNTINGENTRY).

Use the HRMN_TARIFF_CD_CI component interface to load data into the tables for the Harmonized Tariff Code component.

This section provides an overview of customs duties foundation .

Note: Customs duty foundation setup is applicable to customs duty only.

Page Name

Definition Name

Usage

Organization Details Page

ORG_RGSTN_DTL

Define registration data at the organization level, including import export code and BIN, for customs duty.

Harmonized Tariff Code Page

HRMN_TARIFF_CD

Harmonized tariff codes are required on various documents that accompany shipments across international borders. Customs officials use these codes to determine duty on the commodities being shipped. The codes are preestablished for all commodities.

Setting Up the Customs Duties Foundation

Defining Additional Common Information

Define Item - Inventory: Shipping/Handling Page

INV_ITEMS_DEFIN5

Select a tariff code to identify the harmonized tariff code for the item.

Auto Numbering Page

AUTO_NUM_PNL

If you use automatic numbering, the system automatically assigns a number based on criteria that you define on the Automatic Numbering page. It then increases the number by one whenever you add a new transaction.

To automatically number the bill of entry worksheets, define a numbering sequence by using the number type of bill of entry number.

Benefit Scheme Page

CSD_BENEFIT_SCHEME

Define the benefit schemes for customs duties that can be used for imported and exported items. All items that are on an import purchase order and an export sales order need to be identified with a benefit scheme. This information appears by default on the Bill of Entry worksheet and other reports.

Standard Input Output Norm Page

CSD_ITEM_SION

Use to collect information to create reports for claiming customs duty exemptions and customs duty drawback benefits. For an export item, define the quantity of input items, including wastage, that are needed to produce this export item.

Tax Location - Chartfields Page

ORG_EXD_CF_DET

Define the accounting entries to record the customs duty recoverable and nonrecoverable amounts.

The following customs duties information must be defined in PeopleSoft software to be used in correspondence with customs authorities and other reporting requirements.

To define the customs duty structure:

  1. Enter an import export code and the BIN (business identification number) on the Organization Details page.

    For identification purposes, the Director General of Foreign Trade (DGFT) assigns the import export code and the BIN to the organization. The import export code is used for all correspondence with customs authorities for import purchases. For example, this code is required on the Bill of Entry worksheet. The BIN is used for all correspondence with the customs authorities for export purposes. For example, the BIN is required on the shipping documents that are sent to customs clearance.

  2. Identify the harmonized tariff code for each item to be imported or exported.

    The tariff codes are used on all documentation that is submitted to the customs authorities for import. Define the harmonized tariff codes that are to be used by the organization by using the Harmonized Tariff Code page. The Customs Tariff Act specifies the customs duty rates based on the tariff code classifications. Then for each item that is imported or exported, attach the identifying harmonized tariff code to the item by using the Item Definition - Inventory: Shipping/Handling page. Each item must be associated with a harmonized tariff code.

  3. Define the identification number for the Bill of Entry worksheets.

    To automatically number the Bill of Entry worksheets, define a numbering sequence by using the Auto Numbering page. For the Number Type field, use the Bill of Entry Number option and then enter a numbering sequence.

  4. Define the benefit schemes for customs duties by using the Benefit Scheme page.

    All items on an import purchase order and an export sales order need to be identified with a benefit scheme. This information appears by default in the Bill of Entry worksheet and other reports.

  5. For export items that you produce by using imported items, use the Standard Input Output Norm page to identify the quantity of input items that are used.

    The standard input output norms (SION) are used in reports and documents that are submitted to the customs authorities to justify the imported items that are consumed in the manufacture of exported items.

Use the Benefit Scheme page (CSD_BENEFIT_SCHEME) to define the benefit schemes for customs duties that can be used for imported and exported items.

All items that are on an import purchase order and an export sales order need to be identified with a benefit scheme. This information appears by default on the Bill of Entry worksheet and other reports.

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Set Up Financials/Supply Chain > Common Definitions > India GST > Customs Benefit Scheme > Benefit Scheme

Define the benefit schemes for customs duties that can be used for imported and exported items. Enter a benefit ID for all items on an import purchase order and on an export sales order. This information appears by default from the purchase order into the Bill of Entry worksheet and other reports.

Field or Control

Description

Benefit ID

Unique identification number for this benefit scheme.

Benefit Type

Identifies the type of duty benefit that is eligible for special treatment, such as:

Concession: Imports are eligible for concessional rate of customs duty.

Drawback: Imports are eligible for duty drawbacks in the form of refunds or credits from the government.

Free: Imports are duty free.

Begin Date

Enter the date when this benefit scheme is available to be used against import purchase orders.

End Date

Enter the date when this benefit scheme is no longer available.

Status

The status of the benefit scheme. Select Active or Inactive. When the end date is in the past, the system automatically sets the status to Inactive.

Use the Standard Input Output Norm page (CSD_ITEM_SION) to use to collect information to create reports for claiming customs duty exemptions and customs duty drawback benefits.

For an export item, define the quantity of input items, including wastage, that are needed to produce this export item.

Navigation:

Set Up Financials/Supply Chain > Common Definitions > India GST > Custom Item SION

This example illustrates the fields and controls on the Standard Input Output Norm page. You can find definitions for the fields and controls later on this page.

 Standard Input Output Norm page

This page collects information to create reports claiming customs duty exemptions and customs duty drawback benefits. Benefit schemes that specify an export obligation require validation of the imported items that are used in the manufacture of the export items. This applies to items that are imported by means of the benefit type of Drawback or Free on the Benefit Scheme page. To claim the benefits, the importer has to submit the proof of consumption of the imported inputs that are used to manufacture the exported output items. The customs authorities use the SION as the basis for determining the inputs that are considered for the benefit. SIONs are available from the customs authorities for the majority of export items. Each SION is identified with a unique SION number and SION date.

Field or Control

Description

SION Number

Enter the SION identification number that is given to you by customs authorities.

SION Date

Enter the SION date that is given to you by customs authorities. The current date is used as the default.

Benefit ID

Enter the benefit scheme that is associated with this item's SION.

Quantity (quantity)

Enter the quantity of the export item that is produced in the manufacture process.

Import Items

Field or Control

Description

Item ID

Enter the item ID of the imported item that is used in the manufacture of this export item.

Quantity

Enter the quantity for this import item that is consumed in the manufacturing process.

UOM (unit of measure)

Define the unit of measure for this input item's Quantity field.

Wastage % (wastage percentage)

Enter the percentage of the input quantity that is lost during the manufacturing process.

Ratio to Product

The system calculates the percentage of the input item quantity that is part of the output product quantity. The system sets the input and output quantities to the same unit of measure by converting either the input or output quantities. Then, the system divides the input quantity by the output quantity and multiples the result by 100 to compute the percentage.

Use the Tax Location - Chartfields page (ORG_EXD_CF_DET) to define the accounting entries to record the customs duty recoverable and nonrecoverable amounts.

Navigation:

Set Up Financials/Supply Chain > Common Definitions > India GST > Tax Location > Chartfields

Before you can create vouchers, you must ensure that all accounts are populated with valid values, including the customs duty recoverable and the customs duty nonrecoverable accounts.

Enter the ChartField values to record the CNCI and nonrecoverable CSDN accounting entries.