Compensatory Interest determination in Customs document

[Former Member]

Hi Experts,

I have some questions in Customs Management-> Compensatory interest

1) I have defined a Duty type for compensatory interest in the Customs duty framework. Not assigned any cost components for this Duty type.

Control settings for this new duty type is as follows

Value type : Value not Shown Separately

Amount rule: Full Amount in customs currency.

What is the significance of the field Value type in the Duty structure. What will the system do if it is setup as "Value not shown separately".

2) How is this Compensatory interest calculated.

I have setup the Compensatory interest rates in "Maintain compensatory Int.".

When i released the IPR Components to free circulation via Domestic issue. I don't see, Compensatory interest determined in the document. But, in some cases it works.

I would like to know, what would be the basis for calculation of compensatory interest.

Is the value of goods considered for compensatory interest? or something else.

3) I got to know that compensatory interest is calculated only if the value of customs dec. is more than 20 EUR. How do we identfy the value of customs dec. Is it the Value of goods or Value of goods+Duty values etc..

And please help me if i have missed something in the setup for compensatory interest.

Thanks in advance

Dhilipan

[former_member215181 · Accepted solution]

Hi Dhilipan,

1. You don't need to set up anything for the calculation of compensatory interest.  The additional duty type 'I001' is added automatically by the standard program.

2. Compensatory Interest is calculated when the Processing Period has expired.  The amount depends on the time between the expiry and the diversion to free-circulation.

3. The interest is calculated on the Customs Duties payable on the Import to free-circulation.

Regards,
Dave

[Former Member · Accepted solution]

Hi Dave,

Thank you so much for your response....

This gave me a very good idea. Few more queries..

1) In general duty type structure, what does the "Value type"  signify. What will the system do if it is setup as "Value not shown separately". Does this mean the duty amount is not displayed in the declaration?

2) Compensatory interest is calculated in the declaration only when the Processing period is expired.

In my case, by mistake i was trying to push the goods to free circulation before the processing period could expire.

But, i can still find a Compensatory interest of 0.01 calculated. So, this confuses me a bit.

Can you pleasee throw some light on this.

Thanks you so much in advance.

Regards

Dhilipan

[Former Member · Accepted solution]

Hi Dave,

Just checked Function module /SAPSLL/LEG_TLC_CALC_INTEREST where compensatory  interest is calculated.

I can get the flow now. Thanks for your help.

I would just like to know, what is the significance of Value type when duty types are defined.

Regards

Dhilipan

[former_member215181 · Accepted solution]

Hi Dhilipan,

The Value Type affects which entries get copied into the outbound iDoc.

Regards,

Dave

[Former Member · Accepted solution]

Hi Dave,

Thanks a lot

Regards

Dhilipan

[Former Member · Accepted solution]

Hi Dave,

Just an update. I was able to check the flow and determination of compensatory interest.. All goes well.

But one issue which contradicts my understanding. I believed I001 will be automatically added to Duty structure in Declaration and so i removed the definition i made for Duty type I001 in the below mentioned path.

SAP Customs management->Customs processing-> Calulation of Customs duty-> Define Customs duty framework.

But seems, if there are no entries in the above path. System doesn't add I001 to the Imp, declaration. Though i can see a value "0,00" for I001 on debugging, calculated and passed ahead.

I expected I001 showing up in Imp. declaration with value 0,00. But i don't find a value at all.

So, though system automatically determines I001. we need this to be added in the duty framework? But if thats the case, i can see 2 I001 in my Imp. declaration(One frm Duty framewrk and other one from standard)

Am i missing something here.. Please advice.

Thanks

Dhilipan

[former_member215181 · Accepted solution]

Hi Dhilipan,

That's strange.  From the code, I can't see why it should behave like that.  The only requirement is that Duty Type I001 must exist in the Duty Types (definition) table.

If you want to debug for more investigation, set a break-point in Function Module /SAPSLL/LEG_TLC_CALC_INTEREST, and see what happens there, with and without the entry in your calculation schema.

And of course, let us know if you discover anything interesting!

Regards,

Dave