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8/18/2019 Sapnote 0000910681 Additional Custom Duty http://slidepdf.com/reader/full/sapnote-0000910681-additional-custom-duty 1/4 25.02.2011 Page 1 of 4  SAP Note 910681 - Legal changes on Additional Duty of Custom  Note Language: English Version: 7 Validity: Valid Since 14.03.2007 Summary Symptom This is a legal change. Additional duty of Customs(ADC) levied under section 3(5) of customs tariff Act.The Government has imposed a countervailing duty of 4% to compensate for sales taxes/VAT that would be applicable if such goods were manufactured and sold in India. A CVD of 4% is levied on all imports. credit for the CVD to be available for payment of excise duty on finished products alone . Other terms Additional duty of Customs, ADC, Custom duty,Budget 2005-06, Budget 2006-07, CVD Reason and Prerequisites Legal changes. Budget 2005-06,Budget 2006-07, Indian Government has imposed a new duty of 4% levied on all imports . Prerequisites 1 user should have CIN installed. 2 Close all open purchase orders before applying this note. Solution Kindly go through this note for the solution being provided. DDIC Changes Please refer to the attachment 'DDIC_ADC.zip' and make the DDIC changes accordingly. This document provides the details to create a new field in the table J_1IEXCDEF. Procedure for regenerating the views After this, run transaction SE11, select database table and input the table name as J_1IEXCDEF. In the change mode, select Utilities -> Table maintenance generator from the menu bar. Click on the change icon. In reason for change, select 'New field/sec.table in structure'. Click on 'Expert mode' in the pop-up that appears. Select the entire list of entries and press enter. The view is regenerated with the new field. Configurations Please refer to the attachment 'Configurations_ADC.zip'and make the Configurations accordingly. Overview - Logic o This Additional duty of Customs will be captured against the field specified for AED. o The Additional Duty of Customs value will flow into a new G/L Account. o This G/L account is the account maintained against AED for a new sub-transaction type (predefined and delivered, which can be

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Page 1: Sapnote 0000910681 Additional Custom Duty

8/18/2019 Sapnote 0000910681 Additional Custom Duty

http://slidepdf.com/reader/full/sapnote-0000910681-additional-custom-duty 1/4

25.02.2011 Page 1 of 4

  SAP Note 910681 - Legal changes on Additional Duty ofCustom 

 Note Language: English Version: 7 Validity: Valid Since 14.03.2007

Summary

Symptom This is a legal change. Additional duty of Customs(ADC) levied under

section 3(5) of customs tariff Act.The Government has imposed a

countervailing duty of 4% to compensate for sales taxes/VAT that would be

applicable if such goods were manufactured and sold in India.

A CVD of 4% is levied on all imports. credit for the CVD to be available

for payment of excise duty on finished products alone .

Other termsAdditional duty of Customs, ADC, Custom duty,Budget 2005-06, Budget

2006-07, CVD

Reason and Prerequisites

Legal changes.Budget 2005-06,Budget 2006-07, Indian Government has imposed a new duty of

4% levied on all imports .

Prerequisites

1 user should have CIN installed.

2 Close all open purchase orders before applying this note.

SolutionKindly go through this note for the solution being provided.

DDIC ChangesPlease refer to the attachment 'DDIC_ADC.zip' and make the DDIC changes

accordingly.This document provides the details to create a new field in the table

J_1IEXCDEF.

Procedure for regenerating the viewsAfter this, run transaction SE11, select database table and input the

table name as J_1IEXCDEF. In the change mode, select Utilities -> Table

maintenance

generator from the menu bar. Click on the change icon. In reason for

change, select 'New field/sec.table in structure'. Click on 'Expert

mode' in the pop-up that appears. Select the entire list of entries and

press enter. The view is regenerated with the new field.

ConfigurationsPlease refer to the attachment 'Configurations_ADC.zip'and make the

Configurations accordingly.

Overview - Logic

o This Additional duty of Customs will be captured against the field

specified for AED.

o The Additional Duty of Customs value will flow into a new G/L

Account.

o This G/L account is the account maintained against AED for a new

sub-transaction type (predefined and delivered, which can be

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  SAP Note 910681 - Legal changes on Additional Duty ofCustom 

overwritten with the help of a user exit that has been provided).

This will ensure that AED credit and Additional Duty of Customs

credit are separated.

o Account determination logic triggers determining this new account

if the excise invoice is flagged as CVD relevant and has a non-zero

AED value (which means it is Additional Duty of Customs).

 Note : To differentiate the G/L account of Additional duty ofCustoms a new subtransaction type ('IP') is introduced .This has to be maintained as mentioned in the above ZIPfile.An user exit 'J_1I7_USEREXIT_UPDATE_STYPE' is provided tooverwrite the subtransaction type from 'IP' to customerspecific requirement.

Create the user exit J_1I7_USEREXIT_UPDATE_STYPE

o Execute the transaction SE37

o Enter the Function module name as 'J_1I7_USEREXIT_UPDATE_STYPE'

o Function group = 'J1I7'

o Short text = Update subtransaction type

o Maintain the following in the IMPORT tab

Parameter name Type Associated type OptionalIS_EXHEAD LIKE J_1IEXHEAD Checked

o Maintain the following in the Changing tab

Parameter name Type Associated type OptionalL_STRTYP LIKE J_1IEXHEAD-STRTYP Checked

Credit Rules

o A manufacturer can take credit of ADC

o A service provider can not take credit of ADC

o 100% credit can be taken for capital goods in first year itself.

Utilization Rules

o ADC can be utilized against any excise duties except Service tax

and ECS on service tax.

Changes in Monthly Utilization(J2IUN)A new field 'ADC Subtransaction Type' is added in the selection screen.This

field is required to get the ADC credit in utilization screen.

o Sub transaction type has to be entered manually

o Since the ADC credit flows into a new G/L account, it makes it

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  SAP Note 910681 - Legal changes on Additional Duty ofCustom 

possible to separately display the ADC credits and its subsequent

utilization. As per the legal requirement, ADC credit cannot be

utilized to pay Service tax or the Education Cess on Service tax.

Code CorrectionsKindly apply the following code corrections.

Header Data

Release Status: Released for Customer

Released on: 07.07.2006 10:54:32

Master Language: English

Priority: Correction with high priority

Category: Legal change

Primary Component: XX-CSC-IN-MM Materials Management

Secondary Components:

MM-PUR Purchasing

 Valid Releases

Software Component Release From  

Release

To

Release

and 

Subsequent

SAP_APPL 470 470 470

SAP_APPL 500 500 500

SAP_APPL 600 600 600

CIN 2.2 22B 22B

CIN 3.0 30A 30A

CIN 4.0 40A 40A

Support Packages

Support Packages Release Package Name

CIN 22B SAPKIPNBD3

CIN 30A SAPKIPNE19

CIN 40A SAPKIPNG10

SAP_APPL 470 SAPKH47026

SAP_APPL 500 SAPKH50012

SAP_APPL 600 SAPKH60004

Related Notes

 Number Short Text

1014870 Incorrect Excise Base defaulted in J1IEX for ADC process

1002766 Addition of excise duties, ECS and ADC, in Report J2I9

989708 Corrections to note 964190 - Additional duty of customs

964190 ADC on domestic purchase of imported goods

960566 Incorrect excise base in capture EI for imports having ADC

945692 CVD indicator not selectable in J1IG for stock tranfer.

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  SAP Note 910681 - Legal changes on Additional Duty ofCustom 

 Number Short Text

943767 ADC changes for purchase of imported goods from traders

941387 Available credit amount incorrect in J2I8 for Release 46B

934265 J2IUN modifications for ADC

930947 Corrections of ADC in CIN 3.0A and 4.0A

930939 In J1IX,incorrect Part2 entries for capital goods having AD

930756 In MIGO,incorrect Part2 entries for capital goods having ADC

930735 Incorrect updation of ADC in part1 and grxref tables

929681 Subtransaction type not picked up for ADC in MIGO C&P EI

929440 Additional Duty of Customs changes for sales processes

928789 Incorrect GL a/c picked for imported capital goods in J1IX

927558 Budget 2006 - Legal implications

914034 ADC code corrections for ERP 2004 and 2005 customers

 Attachments

File

Type

File Name Language Size

ZIP Configurations_ADC.zip E 73 KB

ZIP DDIC_ADC.zip E 3 KB

Correction Instructions

Correcti

on

Instruct

ions

 Valid 

from 

 Valid 

to

Software

Component

Typ

e

*)

Reference

Correction

Last

Changed 

761634 470 470 SAP_APPL C P6BK210861 28.12.2005

13:45:23

761670 500 500 SAP_APPL C P6DK067482 18.04.2006

09:13:53

761672 600 600 SAP_APPL C P7DK018691 28.12.2005

14:01:57

761632 30A 30A CIN C WSDK006848 28.12.2005

13:39:12

761633 40A 40A CIN C CVDK002796 28.12.2005

13:42:31

805025 22B 22B CIN C PJ4K018107 07.07.2006

15:26:38

*) C Correction, B Preprocessing, A Postprocessing, M Undefined Work