Support for First Filing Rule for Duty Drawback

This feature provides support for the first filing rule for duty drawback. In certain scenarios, you may want to use the first filing rule to ensure continuity in the rules you are using for exports. For example, you import 1000 pieces of a certain part and they have been entered into inventory. When you export the first 100 pieces, you decide if you are going to use a Direct ID Match or Substitution when creating the declaration line from the inventory. As you continue to export from those 1000 pieces that you imported, the first file rule says you need to continue to follow the same methodology for your exports. If the first time you filed, you used Direct ID Match, you need to continue to use Direct ID Match for all exports related to the 1000 pieces that you imported. 

Trade Incentive Program

Navigate to Trade Incentive Program > Programs. On the Trade Incentive Program, a new Apply First Filing Rule flag is available. Select the checkbox to indicate that you want to use the first filing rule. 

Trade Incentive Program - Apply First Filing Rule

Trade Incentive Program - Apply First Filing Rule

Trade Incentive Program Rules

Navigate to Master Data > Power Data > Trade Incentive Program > Trade Incentive Program Rules. Create trade incentive program rules for each methodology and enter the priority. In this example, create 2 rules: one for Direct ID matching, and one for Substitution. Include the priority for each of these rules. 

Trade Incentive Program Rule including Priority

Trade Incentive Program Rule including Priority

When exporting these goods later, GTM reconciles your imports to exports and ensures that the first filing rule is honored. 

Business Benefit: This feature introduces support for the "first filing" rule for duty drawback processing in global trade operations. The first filing rule is critical for maintaining consistency in the methodology used for processing exports against imported inventory. By supporting the first filing rule, this feature streamlines duty drawback processes, enhances compliance with export/import regulations, and minimizes operational risks associated with inconsistent filing practices.

Steps to Enable and Configure

You don't need to do anything to enable this feature.

Key Resources

For more information on trade incentive programs, refer to the GTM How To/Configuration Topic called "Trade Incentive Programs".