Process Steps: Landed Cost Estimation on Trade Transaction/Declaration

Once you have completed the setup steps, you are ready to perform the landed cost calculation on a transaction/declaration. The following are the major steps:

Execute the process steps indicated in the Process Steps: Duty and Tax Calculation on Trade Transaction/Declaration topic.
Execute VALUE SET compliance rules in order to assign charges and other values to the transaction/declaration that haven’t been assigned previously and are required to calculate landed cost.
Enter values for ENTERED MANUALLY flagged value qualifiers.
Execute Allocate Charges by Value.
Execute VALUE QUALIFIER FORMULA compliance rules in order to assign and calculate formulas for those value qualifiers flagged as system calculated.

Executing the Process Indicated in the "Process Steps: Duty and Tax Calculation on Trade Transaction/Declaration" Topic

Execute the Process Steps: Duty and Tax Calculation on Trade Transaction/Declaration covered separately.

This process assigns charges and other values to the transaction/declaration required to calculate the landed cost. It also includes the callout to an external customs duty and tax calculation service.

This step can be considered as a pre-requisite to the process described below.

Executing VALUE_SET Assignment Compliance Rules

Execute Compliance Rules for a compliance rule set group with rule category = VALUE SET. This action will assign a set of values to the transaction lines. In this example execute compliance rules for the Transaction ID= ELC-GB-CHN TRANSACTION-1 with the compliance rule set group= ELC VALUES ASSIGNMENT RULE SET GROUP-1. As a result of the screening, the following value qualifiers will be assigned to the transaction line: BROKERAGE FEE and ESTIMATED LANDED COST. The method of calculation (e.g. SYSTEM CALCULATED or MANUALLY ENTERED) is also indicated for each one of the value qualifiers assigned to the transaction line.

Assigning Values for ENTERED MANUALLY Value Qualifiers

Enter the values for those value qualifiers that have been assigned to the trade transaction/declaration and the method of calculation is indicated as ENTERED MANUALLY.

Executing Allocate Charges by Value

There are charges, contributions and/or taxes at the trade transaction/declaration header. These values need to be prorated to the lines.

In our example, the MPF value qualifier, representing the Merchandise Processing Fee contribution, has been calculated at the header level. This value needs to be prorated to the lines. You can allocate it by value or by weight. To execute the Allocate Charges by Value action on the trade transaction/declaration, enter the following information when performing the action:

Allocate a charge with Value Qualifier ID = MPF. This is the value qualifier at the header level. This amount will be allocated to the lines.
This allocation is prorated based on Value Qualifier ID = INVOICE VALUE. This is the value qualifier at the line level that will be the base to do the allocation.

As a result, a Value Qualifier = MPF will be created automatically for all the lines with the corresponding prorated value.

You can also allocate charges by value or by weight, allocate weight by value, um quantity and value from the lines to header, or sum quantity and value on the header using the corresponding actions if necessary.

Executing VALUE_QUALIFIER_FORMULA Assignment Compliance Rules

Run the Execute Compliance Rules action for a compliance rule set group with rule category = VALUE_QUALIFIER_FORMULA. This action will calculate the formula or mathematical expression for those value qualifiers assigned to the transaction lines that are flagged as SYSTEM CALCULATED.

In this example, execute compliance rules for the Transaction ID = ELC-GB-CHN IMPORT TRANSACTION-1 with the compliance rule set group = ELC VALUES ASSIGNMENT RULE SET GROUP-1. As a result of the screening, the following value qualifiers are calculated:

BROKERAGE FEE. The formula that will be applied is corresponding to the Formula Expression = BROKERAGE_FEE. This formula expression is BROKERAGE_FEE = 0.01*INVOICE_VALUE.
ESTIMATED LANDED COST. The formula that will be applied is corresponding to the Formula Expression = ESTIMATED_LANDED_COST that is FOB_VALUE+INTL_FREIGHT+INSURANCE+BROKERAGE+CUSTOMS_DUTY+EXCISE_TAX+OTHER+HMF+MPF.