safeguard duty levied

[Former Member]

Dear all,

Recently the Indian customs has levied the safeguard duty of 20% on certain commodities. This needs to be accomodated in SAP. Where in imports process can this amount be levied. How to configure this amount in SAP. This cost is levied on gross price of the material/landed cost?. What will be the effects on this cost and where would it be reflected in the invoice? Can this amount be clubbed with the basic customs. If so then what will be its effects.

This is to be accomodated in SAP ECC 6.0 system.

Regards

[former_member190537 · Accepted solution]

HI,

Safeguard Provisions under the Customs Tariff Act, 1975 (Section 8B)

Section 8B of the Customs Tariff Act, 1975 empowers the Central Government to impose Safeguard Duly on goods which enter in increased quantities and cause or threaten to cause serious injury to domestic industry producing like or directly competitive goods.

Check with Client:

1) How it calculate is it Gross Price or Total Excise value

2) Is it Delivery cost? etc

With help of Z condition type ,and Maintain of condition record we can achieve this

Thanks

Mahesh

[Former Member]

Hello,

We have similar issue.

I am looking for SAP Note but didn't get any thing.

My client requirement is that they do not want to pass safeguard duty to customer. Therefore they will inventorise. However they are interested to see safeguard duty in seperate GL account. Hence they want it is to be posted in seperate GL account at the time of MIRO entry.

Kindly help.

Thanks and Regards,

[Former Member]

Hello Dharmendra/Ambesh,

As rightly said by the Mahesh that You need to play with some condition techniques in pricing procedure, treat as delivery cost. Hope you will achieve your result

Regards,

Mihir Patel

[raviraj_sharma]

Normally SAP  releases an OSS note whenever such  LEGAL  duties are levied by the Government.

Please check the SAP Marketplace to check if they  such a note exists  or else raise a SAP message, coz I assume this conditions will also need to be mapped in CIN to some register or the other.

[Lakshmipathi]

You need to ask all these queries to your client.   Of course, this duty can very well be accommodated in SAP based on business requirement.  Explain what is the expectation of your client from SAP point of view?

G. Lakshmipathi