Business Process: Duty and Tax Calculation on Trade Transaction/Declaration

The Estimate Duty and Taxes action on trade transaction and/or declaration is designed for companies that are interested in getting an estimate of the customs duty, taxes, and other contributions for a specific trade transaction/declaration.  

The basic processes that you must follow to get this estimation are:

• Define value qualifiers and formula expressions required to calculate the taxable base amount for customs duty. Values such as extended price, freight, and insurance are commonly required to calculate the taxable base amount for customs duty. You need to specify them as well as their corresponding formulas if necessary.
• Define compliance rules to assign value qualifiers required to calculate the taxable base amount for customs duty. These business rules will assign value qualifiers for that specific trade transaction line/declaration line.
• Define compliance rules to assign formulas to value qualifiers required to calculate the taxable base amount for customs duty. These business rules will assign formulas and calculate the corresponding values for that specific trade transaction line/declaration line.
• Classify the items on trade transaction lines/declaration Lines. Customs duty depends on the customs classification of the item. Classifying the item on the trade transaction line/declaration line is required for that purpose.
• Execute compliance rules to assign value qualifiers required to calculate the taxable base amount for customs duty. Use your business rules to assign value sets, containing values such as charges to trade transaction/declaration header or lines.
• Execute compliance rules to assign formulas to value qualifiers required to calculate the taxable base amount for customs duty. Use your business rules to assign and calculate formulas to value qualifiers.
• Perform Convert UOMs action. Product classification codes require specific units of measure (UOM) for the calculation of duty and other taxes. These UOM details are downloaded as part of product classification data download. You also need to define the conversion factor from the UOM on the application and the UOM required by the duty and tax calculation service.
  The process takes the UOM of the quantity in the trade transaction line or declaration line and makes the corresponding conversion. For example, a quantity of 100 LB on the trade transaction line/declaration line for a product under Harmonized Tariff Code (HTS) 01059400 will be converted to 45.3592 KG since kilograms is the UOM associated to this specific HTS code.
• Estimate Duty and Taxes. Make the customs duty and tax calculation call out to an external tax engine to obtain the applicable duty and taxes.