| # To calculate Assessable Value and Estimated Landed Cost This functionality is specific for India. Custom duty must be calculated on Assessable Value or MRP (Maximum retail price). Before calculating assessable value you must calculate the Cost, Insurance and Freight. Cost, Insurance and Freight = (Purchase order line amount + Insurance per order line + Freight per order line). All the amounts must be in home currency. Assessable value The Assessable value is calculated in the following ways: If the MRP Applicable check box is selected in the Item Data for Indian Localization (tcibd9137m00l) session, the basic custom duty is calculated on MRP (Maximum retail price). The value of MRP is maintained in the MRP of Item (tcibd9139m00l) session. All the other custom duties are calculated, based on Assessable value. Assessable value = Cost, Insurance and Freight+ Handling charges. Infor ERP LN defaults the percentage of Handling Charges from the India Localization Parameters (tccom9136m00l) session. According to Customs law, the value of Handling charges is 1 per cent of the CIF value of the goods. If the transport of goods is by air, then you must check the percentage of freight value against the Purchase order amount. Freight value must be less than or equal to 20 per cent of the purchase order line amount. The same freight value must be used to calculate the assessable value. Estimated Landed cost (ELC) The Estimated landed cost must be calculated as follows: Estimated Landed Cost = Purchase order line amount ( calculated using Purchase Exchange Rate) + Insurance per order line + Freight per order line + Other Charges per order line + Non claimable duties. |