| # Import and Exports (Customs) Introduction Custom duty is levied on goods that are imported at the rate, specified in the Customs Tariff Act. The Customs functionality supports the standard import procedure. Following are the Import duties: Basic customs Duty (BCD) Education Cess on Basic customs Duty Secondary and Higher Education Cess on Basic customs Duty Countervailing Duty (CVD) Education Cess on Countervailing Duty Secondary and Higher Education Cess on Countervailing Duty Additional Duty of Customs (ADC) The Master data setup required for the duties listed above, is as follows: Registration Number own for VAT Registration Number own for ECC Registration Number Business Partner Maintenance of above specified taxes, their rates, effective dates and their nature as Claimable or Expensed. The functionality supported: Imports with duties Exempted Imports Deemed Imports Exempted Exports under different categories Deemed Exports Maintenance of Bonds Maintenance of Certificates Maintenance of Advanced Licenses Maintenance of Certificate of Procurement Generation and Maintenance of Bill of Entry Maintenance of ARE Generation of Exports Invoice. Maintenance of Exempted duties. INCO terms The INCO (International Commercial) terms also known as the terms of delivery, are defined by the ICC (International Chamber of Commerce), to make international trade easier for the buyer and the seller. In Infor10 ERP Enterprise (LN), the Terms of Delivery defines the contract responsibilities of the buyer and the seller, for an import transaction. Exports Exports are classified into following two types: Actual exports Deemed exports Actual Exports Actual Exports are customs' procedures that are executed when the goods are sent to a different country. These transactions are carried out in foreign currency. Actual exports are classified into following categories: Exports without payment of duty: Infor10 ERP Enterprise (LN) executes the Exports process without the payment of duty and along with the linked ARE1 and CT1 forms. The normal excise procedure must be followed until point of generation of the excise invoice. Exports under claim of rebate: You must pay the excise duty for the value of goods, if the goods are used for domestic purpose and not for export. The duty amount can be claimed for the goods that are exported at a later date. You must also link the CT1 and the ARE 1 forms. This functionality allows you to dispatch goods for export against an entry made in the RG 23 A/C register without affecting the bonds. A serial number is generated against such export, under rebate transaction in Part II of RG 23 A/C register. The generated serial number is printed on ARE. You can pay the duties for export, under rebate transactions using the following functionality: Entry in RG 23 A/C register: You can claim the amount of duty paid through RG 23 A/C, back from the government. In case the duty is paid through RG 23 A/C transaction, an entry of the serial number of the transaction must be made in the part II of the RG 23 A/C register. This entry is made with the amount of non-exempt taxes. Entry in PLA: You can claim the amount of duty paid through PLA, from the government. Entry in Bond Export - Advance Licenses This functionality allows export sales using the Advanced License route, with the payment of duty. This type of transaction is processed as per the normal ARE1 procedure. Deemed Exports The goods that are transferred from DTA (Domestic Tariff Area) to a SEZ (special economic zone) are considered as exports and are referred to as Deemed Exports. The transactions are executed, either in Indian or foreign currency. You must execute the normal Export procedure along with some additional steps. Export Warehousing is also considered as Deemed Exports. Imports The following features are provided as part of the Imports functionality: Bill of entry The Bill of entry is a shipping bill submitted to the Customs authorities. The bill contains details of the goods cleared from Customs. Advance License The manufacturer sometimes imports goods, processes them and later exports the goods. The goods can be imported without payment of duty, if they are covered under the special license called the Advance License. The details of goods imported using the advance license must be maintained in the Advance License Lines in the System. The details of the exported goods are to be maintained in the Advance License Header. Certificate of Procurement Goods can be imported without payment of duty by an export oriented unit (EOU), if goods are covered under the statutory document called Certificate of Procurement (PC/ POC). You must maintain the procurement certificate in the system. This functionality allows you to meet the requirement of maintaining the Certificate of Procurement (COP) independently, without a purchase order or a bill of entry. The government provides prior approval to import items in the form of certificate of procurement. This certificate contains details of items and the specified quantity that can be imported. You can raise import orders after the certificate of procurement is obtained. The COP is issued for a specific period. You can use the same COP against multiple import orders with a single receipt, if the following conditions are not violated: The quantity limit specified in the COP is not exceeded. The period for which the COP is issued, has not expired. RG23 D for Imports This functionality allows you to do the following: Import goods into an RG23D warehouse. Pass the CENVAT credit for the duties paid on the goods to the customer in dealer sales transaction. You can import the goods with the purpose of re-selling. Therefore, CENVAT credit for the import duties must be passed on to the customer who purchases the goods. These goods must be imported by the dealer against the RG 23 D warehouse to enable the dealer to pass the credits to the buyer of the goods. The imported goods can be re-sold from the dealer’s warehouse, taking into account the applicable duty credits from purchase transactions and transferring the credits to the buyer in the dealer sales transactions. Purchase Order Invalidation Letter The functionality of Advance License is extended to include domestic exempted purchase orders. The functionality of Advance License for domestic exempted orders is the same as the functionality of the imports exempted orders that use advance license. The process flow is the same for both the order types. Multiple Import Purchase Order with Single Receipt / Bill Of Entry This functionality allows you to use a single receipt or bill of entry to receive the material imported by means of multiple import orders placed to a single supplier. In the normal Import business, many purchase orders can be placed to the same vendor for different items. You can receive these items, against different Purchase Orders, against a single bill of entry. |