Import Purchasing through goods handling at Port

[Former Member]

Hi,

We have a scenario of Import Purchasing through goods handling at Port.

We receive the goods at Port after paying the duty (Custom/CVD) against the Bill of Entry. We then transfer the goods from Port to our plant and want to add the freight cost to material valuation at the receiving plant.

In order to map the scenario, we have created Port as a separate plant and after doing the goods receipt against the PO (where plant is port) we will transfer the goods against STO by putting freight condition in STO. But the main problem is we have to pay the duties (according to Bill of Entry) at the port itself but can’t update Excise Register (neither Part 1 nor Part 2) at the Port. Excise credit should happen only when material arrives at our plant (which is Excise Registered). We have just one Bill of Entry for all the goods received at the Port.

Can anyone help us in mapping the scenario?

Thanks in advance

[former_member192897]

While procuring the goods at port (Plant) you can make use of Import pricing procedure and procure the goods same as for normal import purchase. Ensure depot is not maintained in the CIN configuration except in Plant settings. Here CIN will not be there so all the custom duties will be added to the Material cost.

While transferring the goods from Port, you can create a STO in receiving Plant / Depot and in STO insert all the Custom conditions (Delivery costs) and perform PGI and Receive the same in the Receiving Depot or Plant.Since you have already paid the custom duties while procuring at Depot, here you can insert negative condition types (for Delivery costs) so that the cost gets reduced from the Inventory during the PGI.

[Former Member]

Hi Ashok,

First concern is valuation will be unnecessarily high (inventorization of cenvatabale duties) at the port which should not be.

Second concern is how we can update Excise Register when goods enter at the excisable plant and with which reference as we have only one bill of entry for all items and goods can be partially dispatched from the port.

Please throw some light over this.

Many thanks in advance.

[former_member192897]

Regarding your First query, If you do not want to pay the Custom duties while procurement at Port, you do not need to mention the Planned Delivery cost condition types in PO. While moving the goods, you can pay the custom duties.

Alternately, you can add negative Planned delivery cost condition types and insert in Import PO so that the cost of Condition types reduced from the inventory during GRN.

Regarding your Second query, You have to create One Excise invoice for the whole quantity and refer the same every time you transfer the Material from Port to Plant.

The best option would be creating a Excise JV J1IH every time or Once in a Day / Week / Fortnight / Month as per your requirement. There is no harm if you create Excise invoice in Receiving Plant through J1IH. This is the best Possible way.

In general, You can pay the duties at Procurement at Port. And when you transfer the goods from Port to Depot / Plant, you can insert Negative Planned Delivery cost condition types in STO so that you can reduce the cost loading into Inventory while doing PGI (Since these are already loaded during GRN)

[binoy_vargis1]

This can be handled without creating port as a plant. Normal import PO is made which has the custom duties as well as Freight condition type. You do customs MIRO to create liability to Customs. Make sure that the Freight condition is an inventorising condition type. Once GR happens at plant the freight cost will be automatically added to cost.

Regards

Binoy