| # Export Incentives Export incentives are the benefits offered by the government, to enterprises to increase the exports from a country. The incentives are claimed by the company (exporting enterprise) after the goods are shipped. The government periodically declares the applicable incentive percentage for a combination of items and countries. The companies can claim the export incentive benefits for the specified combinations. The incentives are in the form of cash or scrips. The incentive percentage is defined in the Incentives (tcgtc0146m000) session, and must be specified for the export of a particular item to a particular country or HSN code and group of countries combination. HSN code, Item, Country Set or Country can be left blank. Export Incentive Process The export incentive process involves: Defining Export Incentives Defining an Export Incentive Scheme Creating a shipment line Creating an Export Incentive Line Creating an Export Incentive Claim Export Incentives Scheme An export incentives scheme is linked to an incentive percentage and a customs regulation code. For an exporting country, there can be multiple regulations for export incentives. The export incentive scheme is valid for a specific duration, which can be of several years. Therefore, an effective and expiry date must be specified. For a country, the effective period of the export incentive schemes must not overlap. Note Small changes made in the scheme in this duration can result in a new versions of export incentive schemes. The effective periods of these versions must not overlap. The export incentive schemes are identified by the export incentive scheme code and the effective date. Therefore, when a new version of an export incentive scheme is created, the codes are the same, but the effective dates for the schemes are different. When generating the incentive line, ERP LN follows this priority sequence for the combination specified in the Export Incentive Scheme (tcgtc0645m000) session: Item / Country Item/ Country Set Item HSN Code / Country HSN Code / Country Set HSN Code Country Country Set All blank record Export Incentive Lines When a shipment line is created, ERP LN checks if Export Incentives functionality is implemented and applicable for this shipment. If applicable, ERP LN creates an export incentive line in the Export Incentive Lines (tcgtc2135m000) session. This line is created only if: The shipment line is confirmed. The export incentive parameter is checked for the financial company of the shipping warehouse. For this shipment line, an export incentive line is not yet created. There are one or more export incentive schemes: Are valid for the country of the shipping warehouse Are valid on the shipment date Have an incentive line for the item and ship-to country on the shipment line. Note For each customs regulation only one export incentive line can be generated. The export incentive line can also be created through a batch process or manually. An export incentive line includes the export incentive information for a specific shipment line. Based on these lines, an export incentive claim can be created. The claimable amount is defaulted based on the shipment amount and incentive percentage, when the status of the export incentive line is Open, to deal with exception such as repairs. You can only modify the claimable amount in the export line. Export Incentive Claim You can claim the export incentives from the government. The export incentive claim is a specific type of a Customs claim. For a claim, lines can only be added if they have the following similar attributes: Export Incentive Scheme - Export Incentive lines from the same scheme can be linked to the same claim. However, lines from other schemes cannot be added. Ship-from country - This is the country of the ship-from warehouse. The scheme published by the government of a particular country is only valid for specific exports out of that country. The claim is also provided by that government. Therefore one claim refers to shipments from that country only. Financial company - A claim is limited to one financial company (of the warehouse). When claimed through a (manual sales) invoice, the invoice is generated in this financial company, because an invoice is always limited to one financial company. An export incentive claim can be created using a: Batch session - You can run a batch session, to assign the export incentive lines to a claim. Open lines are assigned to the same claim when the financial company, ship-from country and export incentive scheme are the same. Manual from an Export Incentive Claim - You can open an existing claim or create a new one and select the lines to be added to this claim. Manual from an Export Incentive Line - You can select one or more export incentive lines and create a new claim using the Generate Incentive Claims option from the Export Incentive Lines (tcgtc2135m000) session. |