Customs Declaration

Customs Declaration (CD) is a document that is issued when goods cross the customs border. It declares the application of a specific customs regime (export, import, re-export, temporary importation, etc.) to the goods and the calculation of corresponding customs duties, which is a necessary condition for such a procedure.
A customs declaration contains information about the quantity and types of goods crossing the customs border, their value, and other indicators that serve as the basis for calculating customs payments.

Setup

Before working with a CD document, you need to perform or verify the presence of certain configurations.

1. On the Customs Categories page, you need to create Customs Categories codes and Classification Service Codes for goods and services, as well as create and configure customs categories for customs payments. For more information on creating such codes in the system, refer to the Customs Categories article.
2. On the Customs Category Setup page, you need to configure the corresponding customs payments for each combination of Customs Categories code and country of origin of the goods. For example, the payment type and the percentage or amount of the fee.
3. On the Purchases & Payables Setup page, on the Number Series tab, you need to specify the number series in the CD Document Nos. field. You also need to configure the Customs Declaration tab:

Field	Description
In-line Item Tracking	Specifies whether item tracking is required in the CD line. By activating this configuration, you determine whether to track.
VAT in One Line	Specifies whether the amount of VAT paid at customs will be recorded in one line. Disable the option if the VAT amount should be broken down by items line by line.
FA Charges In One Line	Specifies whether the amount of fixed asset charges will be recorded in one line. Disable the option if the charges amount should be broken down by items line by line.
Application of Preferences	Specifies if preference codes will be loaded when importing an imfx-file. The duty rate will depend on the preference code.
CD VAT Business Post. Group	Specifies the VAT Business Group for the CD, which will be transferred to the created VAT invoice from a CD.
CD Unit (Gross Weight)	Specifies the unit gross weight for the customs declaration document.
СD VAT G/L Account	Specifies the general ledger account for posting the VAT tax credit for the customs declaration document.

Creating a CD Document

To create a CD document, follow these steps:

1. Click the button to open the Search function and enter Customs Declarations, then click the corresponding link.
2. On the CD document list page, click the New button to create a new document.
3. On the General tab, specify the Vendor No., Currency Code, Agreement No., Document Date, Pay-to Customs Charge No., and Location Code.

Note
When making a purchase with payment to another Vendor, specify it in the Pay-to Vendor No. field and Agreement No. for the appropriate filtering of Posted Purchase Receipts when filling in the lines.

4. You can manually add document lines or import them. There are two import options:
   • Import lines from an inbound delivery note: to do this, click Functions > Import Transfer Shipment Lines. In the window that opens, all posted inbound delivery notes will be displayed, filtered according to the data entered on the General tab.
   • Import lines from a purchase invoice: click Functions > Import Lines into CD. A window will open with options to select parameters for the selection of posted purchase invoices (initial parameter values are set based on the data entered on the General tab).

Note
The values of the Total Gross Weight, Total Net Weight fields in the generated lines of the CD are automatically filled in based on the Unit Gross Weight, Unit Net Weight fields entered in the Purchase Receipts. If necessary, these values can be manually edited in the CD lines.

Adding and Distributing Customs Payments

In addition to pre-configured customs payments, there may be a need to add other expenses incurred during customs clearance when creating a CD document.
To do this, there is functionality that allows adding additional costs directly in the CD document.

1. If there are additional expenses, such as transportation costs, you can add them to the CD document by clicking Customs Declarations > Delivery. In the opened window, select the Vendor No., Vendor Agreement No. (if applicable), Customs Fees / Item Charge, Distribution Type, Currency Code, specify the expense amount, indicate whether it is subject to VAT, and whether it should be included in the customs value. You can add as many similar expenses as needed.
2. You can also add customs payments. To do this, click Customs Declarations > CD Customs Duties. Select the code of the relevant customs payment, specify the currency code, amount, distribution type, indicate whether the customs payment is subject to VAT, and whether it is included in the customs value.
3. After entering all the necessary expenses and additional payments, they need to be allocated to CD lines. To do this, click Functions > Distribute Item Customs Charges. All expenses configured on the Customs Category Setup page or entered directly in the CD document will be calculated and distributed to the document lines.
4. The Amounts tab displays key amounts for the document, such as the total customs value, calculated customs duty and excise tax, as well as the amount of other expenses incurred during customs clearance.
5. Expense distribution can be cancelled by clicking Functions > Cancel Item Customs Distribution.

Display of customs preferences

Preferences are special preferential rates that include exemption from duty and apply to items originating from countries that, along with Ukraine, are part of customs unions or create special customs zones with it, as well as in the case of establishing a special preferential arrangement according to international agreements involving Ukraine.

To use a preferential rate in the CD, follow these steps:

1. On the Preferences page, create Preferences codes.

Field	Description
Preference Type	Specifies the type of preference.
Preference Code	Specifies the code of preference.
Description	Specifies the description of preference.
Starting Date	Specifies the starting date of preference.
Expiry Date	Specifies the expiry date of preference.
Calculation Type	Specifies the method of calculating the amount of the customs payment.
Currency	Specifies the customs payment currency code.
Unit of Measure / Item Parameter	Specifies how each unit of the item or resource is measured, such as in pieces or hours. By default, the value in the Base Unit of measure field on the item or resource card is inserted.
Number Of Units	Specifies the number of units of the item specified in the line.
Amount/%	Specifies the value for calculating the customs payment according to the type of calculation.

Note When creating Preferences, the system checks for the uniqueness of the combination of the Preference Type and Preference Code fields and that Expiry Date and Starting Date fields of a new record > the Expiry Date field of other similar records.

2. Fill in the Preferences Codes in the CD lines:

• If the Application of preferences option is disabled on the Purchases & Payables Setup page, fill out the preferences in the CD lines manually.

• If the Application of preferences option is enabled on the Purchases & Payables Setup page, when importing an imfx file, the preferences will be fill out in the rows automatically.

Note
When Distributing Customs when running Functions > Distribute Item Customs Charges for the Customs Category code and the country (group), the settings of customs payments are taken from the Preferences directory.

Creating Expense and VAT Documents

After distributing all expenses to the CD document and before recording it, it is necessary to create expense documents and a VAT invoice.

To do this, click Functions > Create Charge and VAT Documents. Corresponding Purchase Invoices for the amounts of expenses and the VAT Invoice will be created, provided that the Do Not Create Invoice option is not set to the expense transaction, which determines whether a Purchase Invoice will be created for this additional expense or not.
More information about creating a VAT invoice from a specific document can be found in the Creating a VAT Invoice from Specific Documents article.

For expenses such as transportation, a purchase invoice will be created for the specified vendor indicated in the expense rows.

For customs duty, a purchase invoice will be created for the customs authority indicated in the CD document, with the corresponding expense type in the rows and the G/L account for VAT.

To view the created documents from the CD document, click Custom Declaration > Purchase Invoices. In similar way you can view posted documents by clicking Custom Declaration > Posted Purchase Invoices.

Once the CD document is ready, it can be released and posted.

Note
After changing document status to Released, the document cannot be edited. To make any changes, the document must be opened.

Сreated purchase documents and the VAT invoice can also be posted.
To post the CD document, click Home > Post, after which the document will be moved to the Posted Customs Declarations.

Helpful Links

Customs Categories
Creating a VAT Invoice from Specific Documents