Duty Free Import Process

[Former Member]

Hi experts,

I would like to know the process of duty free import. Customs department will not charge any duty against the DFIA license.

At the time of PO creation we have to enter all conditions related to customs, because duty free is depends upon the credit utilization of license.

If we post GR without reference to Bill of Entry document system will consider the duty from PO and add to material stock account.

Please advise.

Regards,

Krishna Kumar

[Former Member]

Hi Krishna,

I am trying to implement the same scenario in my project. Can you please help me how did you achieve this requirement. Also, I would like to know what all license related information are you entering at the time of GR.

Are you also tracking amount of import or custom duty that you have debited against a particular license. I mean, if my license allow me to take exemption of Rs. 100 and I have already used Rs. 60 by using that license, are you tracking this feature also.

[binoy_vargis1]

Hi,

There is no alternative in standard other than removing these condition types from PO.

You can now consider putting a mandatory custom field in GR where you can mention the "DFIA license" applicable or not. If DFIA License is applicable then you have to ignore these conditions by making use of Routines(Requirement) in pricing schema. Check with your ABAP team for this feasibility.

Regards

Binoy

[former_member192897]

Create Import PO with only Inventorized conditions say JCDB, JEDB, JSDB and peform GRN & MIRO (for Goods + Planned delivery costs) as usual. If you donot want to Insert the Inventorized conditions also then its fine.

If you want to take the Cenvat credit then you can use J1IEX with EWPO transaction type and get the credit & proceed with FB60 for Vendor payment if required else ignore this step (FB60).

[Former Member]

Hi Ashok,

ya ur rite.

If they receive zero custom duties and need only base value to update and if they have conditions value in PO JCDB,JEDB,JSDB % maintained in PO, how to skip this conditions other than changing in po by making it zero any alternative.

Regards

Shiva

[former_member192897]

Just donot maintain any conditions in PO if there are no duties to be paid to customs. Have ticked the GR based IV in PO and proceed.

[former_member182489]

Import Procurement process

• Create import PO with Material, Customs duty, Freight duties, landing charges, CVD etc as agreed with the Vendor
• Now CVD, Customs values will change and will get the final value when stock is received at our Port
• We then manually change PO and  give correct Customs duties
• We do BOE
• GR
• Final settlement to Vendor (considering advance payment if any - hence mentioned like final settlement)

Now in your case, If the Stock/Material comes with duty free , change the PO before GR and change the customs /CVD conditions to ZERO.

regards

manu

[Former Member]

Hi,

I have same requirement can any one tell how to map this issue.

Regards

shiva

[Former Member]

Hi,

The process we are following is as below :-

1) Create Import PO w/o duties in all cases ( with zero tax code ).

2) If you receive the material with Duty Free then no need to amend the PO

3) Note : If duty is applicable then after receipt of Bill Of Lading from Custom Department we have to do change in PO accordingly and then proceed with IR. GR & IR-vendor.

[Former Member]

Dear Yasmeen,

Thanks for suggestion.

Your suggestion is not possible in our case because 80 % of import is customs duty applicable.

Thanks & Regards,

Krishna Kumar

[Prasoon]

Hi,

   As of my knowledge, you have to amend the PO to remove all the duty values in PO, before doing GR.

Hope its helpful.

Regards,

AKPT

[Former Member]

Hi AKPT,

Please suggest any other solution without amending PO, because sometimes we have to use the same excise condition in next GR.

Thanks & Regards,

Krishna Kumar