Setting up for customs duty

Use these steps to set up the tariff rates for goods that are imported. The customs charges are part of the inventory costs of the item.

Configure customs charges in the add on charge facility:
1. Sign in as Application Administrator and select Supply Management > Supply Management Setup > Purchasing > Add On Charges.
2. Click Create.
3. Specify the Add On Charge short name and Description.
4. Specify this information:
  Type
  Select cost or allowance.
  
  Select Cost to add cost to a PO line.
  
  Select Allowance to deduct cost from a PO line.
  Track Type
  
  Select the track type. Valid values are Other AOC, Freight, Insurance, Customs Charges.
  
  Spread Method
  Select the spread method that is applicable to the required computation.
  
  Rate: Percentage of the line’s extended cost. This option is for Ad Valorem computation.
  
  Quantity: Used for quantity-based method of computation of customs duty using a per unit computation.
  
  Amount: Used to add a fixed amount to the unit cost of the item.
  Print On PO
  
  Select this check box.
  
  Landed
  
  Select this check box.
Configure customs charge in the tax code facility:
1. Select Financials > Payables > Tax Setup > Tax Codes.
2. Specify the Tax Code name and Description.
3. Specify this information:
  
  Tax Type
  
  Select Stand-alone.
4. On the Rates pane, specify the Effective Date and Rate of the tax code.