Adobe Captivate - Oracle
Slide 2 - Oracle Global Trade Management 6.4 and 6.4.1 Transfer of Information Landed Cost Simulator Functional Overview
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Welcome to the Oracle Global Trade Management Transfer of Information session explaining the new Landed Cost functionality introduced in 6.4 and enhanced in the 6.4.1 release. This functional overview provides a high-level description of the key features added to Landed Cost Simulator in the GTM 6.4 and 6.4.1 releases.
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Slide 3 - Use of the information, documents and online training courses (collectively, “Materials”) found on this area of the Site constitutes agreement with the following terms and conditions (as well as those set forth in the Purpose and Disclaimer sections below): 1. Oracle is pleased to allow its business partner (“Partner”) to download and copy the Materials found on this area of the Site. The Materials are proprietary information of Oracle. Partner or other third party at no time has any right to resell, redistribute or create derivative works from the Materials. The use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only. The Materials may not be used for training, promotion, or sales to customers or other partners or third parties. 2. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. 3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any Materials. Materials are provided "as is" without warranty of any kind, either express, implied or statutory, including without limitation the implied warranties of merchantability, satisfactory quality, fitness for a particular purpose, accuracy, timeliness and non-infringement of third-party rights. The information contained herein is subject to change without notice. 4. Under no circumstances shall Oracle be liable for any loss, damage, liability or expense incurred or suffered which is claimed to have resulted from use of these Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Partner’s use of the Materials.
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Slide 4 - Purpose This document provides an overview of features and enhancements included in Oracle Global Trade Management Release 6.4 and 6.4.1 and applicable updates. It is intended solely to help you assess the business benefits of upgrading your existing Oracle Products to this release, or implementing completely new Oracle developed products, and planning your I.T. Projects. Disclaimer This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement or other applicable contract with Oracle, with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without Oracle’s prior written consent. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is intended to outline our general product direction. It is intended for informational purposes only and solely to assist you in planning for the implementation and upgrade of the product features described. Release information contained in this document is not a firm development plan. Release information published here should not be used as the basis for customer delivery commitments, as part of marketing efforts, or during contract negotiations. This is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality, and inclusion or not thereof in the commercially available version of the Software, if any, is subject to change at any time and is always at Oracle’s sole discretion. This document is not considered part of the applicable program documentation. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.
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Slide 5 - Objectives
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This session will prepare you to:
• Identify the new functionality in this release
• Learn how the new features address business needs
• Determine how to configure the new functionality
• Understand any dependencies or interactions
• Find additional release information and resources
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Slide 6 - Program Agenda
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This presentation will cover the following main topics:
• Market Drivers/Business Needs
• Landed Cost Simulator Overview
• Using Landed Cost Simulator
• Landed Cost Simulator Setup
• Customs Duty and Tax Estimation on Trade Transactions
• Additional Resources
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Slide 7 - Market Drivers/Business Needs
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First, let’s review the market drivers and business needs for Landed Cost Simulator.
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Slide 8 - Market Drivers/Business Needs
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In a global supply chain, it is easy to incur unexpected costs at any step in the procurement or fulfillment processes. With visibility of anticipated charges prior to generating a purchase or sales order, companies can make more informed decisions that will enable them to reduce costs, protect profit margins, and stay competitive.
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Slide 9 - Market Drivers/Business Needs
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With the new Landed Cost Simulator you can now provide your procurement and sourcing counterparts complete visibility of extended supply chain costs and potential savings opportunities related to the customs and clearance processes. This supports more strategic sourcing initiatives and gives the customs team value added collaboration throughout the process.
This functionality will help to:
• Display Free Trade Agreement eligibility and financial benefits during the sourcing process
• Enrich the contract/Incoterm negotiation process during sourcing or procurement between buyer and seller
• Enable "smart" sourcing through comparison of multiple shipment scenarios
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Slide 10 - Landed Cost Simulator Overview
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This section provides an overview of the Landed Cost Simulator.
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Slide 11 - Landed Cost Simulator Overview
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Landed Cost Simulator helps sourcing users to estimate and compare the landed cost for different vendors’ offers, based on variables such as:
• Ship-from country
• Mode of transport
• Inco term
This tool can be accessed via Landed Cost > Landed Cost Simulator.
You can find the following sub-menus under Landed Cost:
• Landed Cost Simulator
• Process Management
• Power Data
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Slide 12 - Using Landed Cost Simulator
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Next we will review the steps involved in using the Landed Cost Simulator.
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Slide 13 - Using Landed Cost Simulator
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Landed Cost Simulator functionality requires user interaction. We will go through each of these steps using a business use case.
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Slide 14 - Using Landed Cost Simulator
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On this screen, you have to select the logic configuration that contains the group of rules that will:
• Assign charges and other values required to calculate customs value (for example BASE VALUE SET - RULE SET GROUP)
• Assign the formulas to these charges/values (for example BASE FORMULA - RULE SET GROUP)
• Assign charges/values not assigned yet that are required to estimate landed cost (for example ESTIMATED LANDED COST VALUE SET - RULE SET GROUP)
• Assign the formulas to these charges/values (for example ESTIMATED LANDED COST FORMULA - RULE SET GROUP)
For this use case, we will use the LOGIC CONFIGURATION = SS-CHN-IND-TO-GBR-NEEDLE-BEARING 8482400000.
Refer to the Setup section to understand how to create a logic configuration.
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Slide 15 - Using Landed Cost Simulator
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Next you have to enter the basic information related to the simulation scenario, including:
• Country of Import - the ISO code of the destination country
• Result Currency - the currency in which the estimated landed cost will be shown
• Exchange Rate Date - the date that will be used to get the exchange rate. Default will be the system date.
• Classification Type - the classification type that identifies the Harmonized Tariff of the imported product
• Product Information. You have two options:
o Classification Code - the tariff code that will drive the duty and tax calculation
o Item - the item, from where GTM will look for the classification code corresponding to the Product Classification Type indicated
Once you enter the classification code, GTM will look at the attributes of the classification code in order to find the Units of Measure (UOMs) associated and will request the quantity on these UOMs. If there is no attribute related to the UOM, then GTM will not request this quantity. The following is the data for the use case: Country of Import = GBR; Result Currency = GBP; Exchange Rate Date = 12/8/2015; Classification Type = HTS GB
Item = Needle Roller Bearing
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Slide 16 - Using Landed Cost Simulator
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You will be able to enter information for one or more sourcing options. By default, you can see three sourcing options on the screen; but you may change this number by modifying the property gtm.lcs.sourcingOptions.numberOfOptions. At least one sourcing option is mandatory. The following is the information (i.e. attributes) requested for each sourcing option:
• Country of Export or Ship-From Country - the ISO code for the country
• State/Province
• Postal Code
• Country of Origin - the country from where the goods are sourced and is used to determine the customs duty rate
• Transport Mode
• INCO Term
• Invoice Value and currency (all are madatory except State/Province and Postal Code)
For our example, you want to consider the following two options:
• Option 1: Country of Export and Country of Origin is China. Transport Mode is AIR; INCO Term is CIF and the Invoice Value is 50,000 yen
• Option 2: Country of Export and Country of Origin is India. The Transport Mode is AIR; INCO Term is FOB; and the Invoice Value is 400,000 rupees.
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Slide 17 - Using Landed Cost Simulator
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After entering the attributes for each of the sourcing options, you want GTM to assign the right set of charges to each of the sourcing options. For that, click Assign Costs. GTM will execute compliance rule screening which will:
• Assign a group of charges. These charges may vary depending on the transport mode, Incoterm, ship-from country, etc. The screening will use the BASE VALUE SET RULE SET GROUP defined in the logic configuration associated with the simulation.
• Apply the formulas and do the corresponding calculations of the assigned charges. The screening will use the BASE FORMULA RULE SET GROUP defined in the logic configuration associated with the simulation.
Charges (i.e. value qualifiers) can be set up as ENTERED MANUALLY or FORMULA DRIVEN (i.e.: calculated by the system). For detailed information on how to set up charges (i.e. value qualifiers) and assignment of rules, refer to the Setup section.
Following the example, we have setup the following charges to be ENTERED MANUALLY:
• Domestic Inland Freight
• Bank Fee
• Brokerage Fee
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Slide 18 - Using Landed Cost Simulator
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For those charges calculated by the system, you have the option to override the calculated values, lock them, and then request GTM to recalculate the remaining charges. The lock icon for these attributes will be open by default. To lock the value, click on the lock icon once you have entered the value. The lock icon will then show as closed.
For those charges that the system has calculated, there is also a calculator icon associated with them. When you roll the mouse over this icon, you will see the applied formula. You can see that the formula for the BROKERAGE FEE charge is 0.01 * INVOICE VALUE.
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Slide 19 - Using Landed Cost Simulator
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After entering/changing the charge values, you want GTM to recalculate the charges that have been set up as calculated by the system and remain unlocked. For that, click the Recalculate button. GTM will execute the following process in the background:
• Execute compliance rule screening with BASE FORMULA-RULE SET GROUP as a rule set group defined in logic configuration. This process will do the recalculation.
You can execute the recalculate process as many times as you want.
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Slide 20 - Using Landed Cost Simulator
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Once you feel comfortable with the charge values, you want GTM to calculate the landed cost for all of the sourcing options. For that, click Show Landed Cost. GTM will execute the following sub-processes in the background:
• Call out to an external tax engine to get estimated duty and taxes
• Assign and calculate charges and other values required to calculate landed cost
• Show the results for the different sourcing options
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Slide 21 - Using Landed Cost Simulator
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In the results page you see that for each of the sourcing options, the following information is displayed:
• Country of Origin
• INCO Term
• Transport Mode
• Invoice Value
• All the landed cost results (depending on how many duty rates are available)
You can select from two options: Total which displays the total estimated landed cost or Per Unit which displays the per unit estimated landed cost.
This screen shows the results for the option ”Show Cost = Total”.
GTM uses three colors to highlight results:
• Red – indicates the highest landed cost across sourcing options
• Green – indicates the lowest landed cost across sourcing options
• Orange – indicates any other result in the middle
Following the example, there are multiple tariff rates for tariff code HTS-GB 8482400000.
For Country of Origin CHN (China) there are two duty rates:
• The general or default rate
• The ERGA OMNES special rate
For Country of Origin IND (India) there are three duty rates:
• The general or default rate
• The SPGL special rate
• The ERGA OMNES special rate
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Slide 22 - Using Landed Cost Simulator
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This screen shows the results for the option ”Show Cost = Per Unit”.
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Slide 23 - Using Landed Cost Simulator
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You can see the detailed information for each of the sourcing options. For this, click the Show Details link provided for each option.
Here you can see the details for sourcing option #1.
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Slide 24 - Using Landed Cost Simulator
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The Detail View compares numerically the different options, grouping the information by value categories. Here you can see the comparison between options #1 and #2.
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Slide 25 - Using Landed Cost Simulator
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You can change to a graph view where you can see the comparison between the charges, duty, and tax values at the value category level across the ‘sourcing option-duty rate’ combinations on a bar chart.
Here you see the comparison of the charges, duty, and taxes summarized by value categories for each one of the available duty rates:
• Option 1: Default Rate
• Option 1: ERGA OMNES
• Option 2: Default
• Option 2: SPGL
• Option 2: ERGA OMNES
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Slide 26 - Using Landed Cost Simulator
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You can save the input data of the simulation. The information that will be saved includes:
• The shipment information (country of import, classification type and code, etc.)
• The sourcing information (ship-from, country of origin, invoice value, etc.)
GTM won’t save the landed cost results.
To save the simulation data, click Save at the top of the page. Enter the name of the simulation in the pop-up window. Click the OK button to save the query.
Next time you want to rerun this simulation you can select it from the Saved Simulations drop-down list.
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Slide 27 - Landed Cost Simulator Setup
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Next, we will review the set up required for the Landed Cost Simulator functionality.
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Slide 28 - Landed Cost Simulator Setup
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You need to do some configuration in order to be able to use the Landed Cost Simulator functionality. There are two major setup areas:
• The setup required to calculate customs value and duty/taxes
• The setup required to calculate landed cost
We will go through both of these in this section.
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Slide 29 - Setup to Calculate Customs Value, Duty and Taxes
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GTM uses value qualifiers to model any charge (freight, insurance, etc.) or other value (such as FOB value) required to calculate Customs Value (that is the base amount to calculate customs duty).
You will need to set up the following:
• Value Qualifier: any charge, duty or tax as well as any other value required to calculate the landed cost
• Value Type: sub-categorization of the value qualifier from the business perspective
• Value Category: categorization of the value type from the business perspective
To do this setup go to Landed Cost > Power Data > Value Set.
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Slide 30 - Setup to Calculate Customs Value, Duty and Taxes
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Here you can see additional value qualifiers. GTM ships with some of these value qualifiers.
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Slide 31 - Setup to Calculate Customs Value, Duty and Taxes
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You can group charges and other values that are usually applied together for a specific sourcing scenario and that are required to calculate customs value. Relevant information stored on a value set is:
• Description
• Value Qualifiers
• Method of Calculation (Formula or Manual)
o Formula: when the value qualifier is calculated by GTM
o Manual: when the value qualifier is entered by the user
The value set shown here - BASE VALUE SET - includes the following value qualifiers: Invoice Value, FOB Value, Domestic Inland Freight, Bank Fee, Insurance, Brokerage Fee, International Freight
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Slide 32 - Setup to Calculate Customs Value, Duty and Taxes
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GTM has introduced a new type of compliance rule - “VALUE SET” rule. This rule allows you to assign a value set. Following are the characteristics of this type of rule:
• Control Category - The control category for this type of formula is VALUE_SET.
• Parameters - Additional parameters have been added to the already existing parameters: Incoterm, Incoterm Profile, Transport Mode, and Transport Mode Profile.
• Controls - The following information should be provided on the Controls tab:
o Value Set - It is the value set (i.e. charges and any other required value) that will be assigned to a trade transaction.
During the Landed Cost Simulator setup, you may need to define two sets of charges/values:
• A set that has all the charges/values required to be entered manually or calculated by GTM to arrive at the components of the customs value (e.g. item price, dutiable freight, insurance, other charges). GTM passes this information to the external tax engine for duty/tax estimation. For example, FOB PRICE, DUTIABLE FREIGHT, INSURANCE.
• A set with additional charges/values required to be entered manually or calculated by GTM to arrive at the final estimated landed cost. For example, BROKERAGE FEE, STORAGE, ESTIMATED LANDED COST. (We will look at this later in this section).
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Slide 33 - Setup to Calculate Customs Value, Duty and Taxes
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Continuing with the example, the rule shown here assigns the Value Set 'ELC-VALUE SET FOR ELC-1' to those transactions with a ship-from of China, ship-to of Great Britain, and INCO term of CIF and FOB.
Compliance rule is accessed via Landed Cost > Power Data > Compliance Rule > Compliance Rule.
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Slide 34 - Setup to Calculate Customs Value, Duty and Taxes
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Here you see the rule set group and rule set containing this compliance rule.
Compliance rule set group is accessed via Landed Cost > Power Data > Compliance Rule > Compliance Rule Set Group.
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Slide 35 - Setup to Calculate Customs Value, Duty and Taxes
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In the process to calculate customs value, you will need to calculate charges and other related values. For example:
• FOB VALUE: INVOICE VALUE – INTERNATIONAL FREIGHT – INSURANCE
• TAXABLE FREIGHT: 70% OF INTERNATIONAL FREIGHT
To set formula expressions go to Landed Cost > Power Data > Formula > Formula Expression.
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Slide 36 - Setup to Calculate Customs Value, Duty and Taxes
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Here you can see two formulas that will be used to calculate the components of the customs value:
• International Freight
• FOB Value
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Slide 37 - Setup to Calculate Customs Value, Duty and Taxes
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A compliance rule allows you to assign dynamically the formulas to be applied to each one of the values from the value set, in case they have been setup as calculated by the system.
GTM has introduced a new type of compliance rule - “VALUE QUALIFIER FORMULA RULE”. This rule allows you to apply formula expressions to one or more value qualifiers. Following are the characteristics of this type of rule:
• Control Category - The control category for this type of rule is VALUE_QUALIFIER_FORMULA.
• Parameters - Two additional parameters have been added: Incoterm or Incoterm Profile and Transport Mode or Transport Mode Profile.
• Controls - The following information should be provided on the Controls tab:
• Value Qualifier - This is the value qualifier that will inherit the formula.
o Formula Expression - The expression to be applied to the value qualifier.
o Formula Rank - There are some cases where more than one rule may apply or match the conditions on the trade transaction. If you foresee this possibility, you should provide ranking to the rules. The rule with the lowest rank is retained and applied.
In the example you can see the compliance rule 'ELC-CHARGES FORMULA ASSIGNMENT RULE-1' that assigns formulas to different charges and values for those transactions with a ship-from of India, ship-to of Great Britain, and INCOTERM of FOB required to calculate the customs value that will be used as a base to calculate customs duty and taxes.
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Slide 38 - Setup to Calculate Customs Value, Duty and Taxes
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Here you can see another compliance rule 'ELC-CHARGES FORMULA ASSIGNMENT RULE-2', that assigns formulas to a charge for those transactions with a ship-from=China, ship-to=Great Britain, and INCOTERM=CIF.
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Slide 39 - Setup to Calculate Customs Value, Duty and Taxes
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Here you see the rule set group and rule set containing the previous two compliance rules.
You may need to define two rule set groups:
• A rule set group that has the rules that assign formulas and calculates the charges/values required to arrive at the components of the customs value (i.e. item price, dutiable freight, insurance, and other charges). GTM passes the information to the external tax engine for duty/tax estimation. E.g.: Formulas for FOB PRICE, DUTIABLE FREIGHT, INSURANCE.
• A rule set group that assigns additional formulas and calculates the charges/values required to arrive at the final estimated landed cost. E.g.: BROKERAGE FEE, STORAGE, ESTIMATED LANDED COST.
Here you can see the rule set group that assigns the formulas to the charges/values required to calculate customs value’s components (i.e. item price, dutiable freight, insurance, and other charges).
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Slide 40 - Setup to Calculate Customs Value, Duty and Taxes
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GTM integrates with the external tax engine DESCARTES for the purpose of customs value, customs duty, and taxes estimation.
The data mapping between GTM and Descartes is done via the properties shown here.
A company with simple tax requirements could do their own duty and tax calculation using the new enhanced formulas feature.
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Slide 41 - Setup to Calculate Customs Value, Duty and Taxes
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The calculation of customs duty and taxes feature is supported for the Landed Cost Simulator as well as for trade transactions. Behind the scene, Landed Cost Simulator models the use case as a trade transaction with a single trade transaction line.
Trade transaction header is built with the Ship-To, Ship-From, Incoterm, and Transport Mode.
Trade transaction line is built with item information including tariff classification code, country of origin, quantities, and values.
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Slide 42 - Setup to Calculate Customs Value, Duty and Taxes
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Data needed by the service request includes:
• The Ship-To and Ship-From Country
• The transport mode (e.g.: AIR, VESSEL, etc.)
• Tariff Code and Country of Origin for the item
• Customs value components:
o Cost of Goods (excluding any freight or insurance charge)
o Dutiable Freight
o International Freight
o Insurance
o Other
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Slide 43 - Setup to Calculate Customs Value, Duty and Taxes
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GTM will pass to the external tax engine the quantities in the required UOMs, specified by the classification code of the item on the transaction line.
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Slide 44 - Setup to Calculate Customs Value, Duty and Taxes
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Results from the external tax engine include:
• Customs Duty and Taxes at the header level
• Customs Duty and Taxes at the line level
• Formulas used to calculate duty and taxes
• Relevant notes related to the calculation
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Slide 45 - Setup to Calculate Customs Value, Duty and Taxes
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As explained earlier, in the background there is a trade transaction for each sourcing option. Duty and taxes are modeled as value qualifiers with specific value qualifier categories.
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Slide 46 - Setup to Estimate Landed Cost
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GTM uses value qualifiers to model any component of the landed cost such as charges (such as freight, insurance, brokerage fee, storage, etc.), duty and taxes, and any other value required to be calculated in the process. If you have defined these qualifiers for customs value calculation process, you won’t need to create them again. As indicated earlier, you need to define the following objects for that purpose:
• Value Qualifier - any charge, duty or tax as well as any other value required to calculate the landed cost
• Value Type - categorization of the value qualifier from the business perspective
• Value Category - categorization of the value type from the business perspective
To set up Value Qualifiers go to Landed Cost > Power Data > Value Qualifier > Value Qualifier.
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Slide 47 - Setup to Estimate Landed Cost
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You can group charges and other values that are usually applied together for a specific sourcing scenario and that are required to calculate landed cost. Relevant information stored on a value set includes:
• Description
• Value Qualifiers
• Method of Calculation (Formula or Manual)
o Formula: when the value qualifier is calculated by GTM
o Manual: when the value qualifier is entered by the user
Following the use case, the value set shown here includes only one value qualifier – ELC, that will serve to hold the Estimated Landed Cost Value since all other charges required to calculate landed cost have already been assigned to the trade transaction.
The value set - BASE VALUE SET - includes the following value qualifiers:
• Invoice Value
• FOB Value
• Domestic Inland Freight
• Bank Fee
• Insurance
• Brokerage Fee
• International Freight
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Slide 48 - Setup to Estimate Landed Cost
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GTM has introduced a new type of compliance rule – the “VALUE SET” rule. This compliance rule allows you to assign a value set. The following are the characteristics of this type of rule:
• Control Category - The control category for this type of formula is VALUE_SET.
• Parameters - Additional parameters have been added to the existing parameters: Incoterm, Incoterm Profile, Transport Mode, and Transport Mode Profile.
• Controls - The following information should be provided on the Controls tab:
o Value Set - It is the value set (i.e. charges and other required values) that will be assigned to a trade transaction.
During the Landed Cost Simulator setup, you may need to define two sets of charges/values:
• A set that has all the charges/values required to be entered manually or calculated by GTM to arrive at the components of the customs value (i.e. item price, dutiable freight, insurance, other charges). GTM passes this information to the external tax engine for duty/tax estimation. E.g.: FOB PRICE, DUTIABLE FREIGHT, and INSURANCE.
• A set with additional charges/values required to be entered manually or calculated by GTM to arrive at the final estimated landed cost. E.g.: BROKERAGE FEE, STORAGE, ESTIMATED LANDED COST.
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Slide 49 - Setup to Estimate Landed Cost
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Slide notes
Here you can see the VALUE SET ASSIGNMENT rule that assigns the ELC VALUE SET to the trade transaction.
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Slide 50 - Setup to Estimate Landed Cost
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Here you can see the compliance rule set and rule set group that includes this compliance rule.
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Slide 51 - Setup to Estimate Landed Cost
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Continuing with the example, you see the definition of the formula to calculate the final estimated landed cost.
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Slide 52 - Setup to Estimate Landed Cost
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Slide notes
GTM has introduced a new type of compliance rule - “VALUE QUALIFIER FORMULA RULE”. This rule allows you to apply formula expressions to one or more value qualifiers. Following are the characteristics of this type of rule:
• Control Category - The control category for this type of rule is VALUE_QUALIFIER_FORMULA.
• Parameters - Two additional parameters have been added: Incoterm or Incoterm Profile and Transport Mode or Transport Mode Profile.
• Controls - The following information should be provided on the Controls tab:
o Value Qualifier - This is the value qualifier that will inherit the formula.
o Formula Expression - The expression to be applied to the value qualifier.
o Formula Rank - There are some cases, where more than one rule may apply or match the conditions on the trade transaction. If you foresee this possibility, you should provide ranking to the rules. The rule with the lowest rank is retained and applied.
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Slide 53 - Setup to Estimate Landed Cost
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Slide notes
Continuing with the use case, this rule assigns the Formula Expression 'ELC-VALUE FORMULA-1' to the ELC value qualifier (i.e. ESTIMATED LANDED COST) for those transactions with a ship-from of China, ship-to of EU, and INCOTERM of CIF and FOB.
This formula, as shown in a previous slide, will have the following expression:
• ELC = FOB VALUE + INTL FREIGHT + INSURANCE + EXCISE TAX + DUTY + STORAGE FEE + BANK FEE + BROKERAGE FEE + TAX+OTHER TAX + DMSTC INLAND FREIGHT + VAT
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Slide 54 - Setup to Estimate Landed Cost
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Slide notes
Here you see the rule set group that assigns the formulas to the charges/values required to arrive at the final estimated landed cost.
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Slide 55 - Setup to Estimate Landed Cost
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Slide notes
You will use logic configurations to group rule set groups. The logic configuration will contain all the rules to be evaluated in order to assign value sets and their corresponding formulas.
To set up logic configuration for GTM Landed Cost Simulator go to Shipment Management > Power Data > General > Logic Configuration.
GTM ships with a default logic configuration GTM LANDED COST MODEL CONFIGURATION DEFAULT that will group the following rule set groups:
• BASE VALUE SET – RULE SET GROUP
• BASE FORMULA – RULE SET GROUP
• ESTIMATED LANDED COST VALUE SET - RULE SET GROUP
• ESTIMATED LANDED COST FORMULA - RULE SET GROUP
You can use the default logic configuration pre-seeded by GTM or create as many logic configurations as needed to support your business needs. You need to specify the following four mandatory parameters:
• BASE VALUE SET – RULE SET GROUP: the charge (and/or additional values) rule set group
• BASE FORMULA – RULE SET GROUP: the formula rule set group that will be used to calculate the charges (and/or additional values)
• ESTIMATED LANDED COST VALUE SET – RULE SET GROUP: the charge (and/or additional values) rule set group that will be required to estimate landed cost
• ESTIMATED LANDED FORMULA – RULE SET GROUP: the formula rule set group that will be required to estimate landed cost
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Slide 56 - Customs Duty and Tax Calculation on Trade Transactions
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Next, we will review how to use the new and enhanced features to calculate customs duty and taxes on trade transactions.
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Slide 57 - Customs Duty and Tax Calculation on Trade Transactions
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GTM has enhanced features to support the customs duty and tax calculation on trade transactions. The enhanced functionality includes the ability to:
• Assign value sets to a trade transaction via compliance rules
• Assign formulas to value qualifiers on trade transaction via compliance rules
• Call an external tax engine (i.e. Descartes) to calculate customs duty and taxes.
We will go through an example to show how to use these features.
Note: You can follow these process steps to perform duty and tax calculation on customs shipments, and use the data for customs filing with the government.
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Slide 58 - Customs Duty and Tax Calculation on Trade Transactions
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Let’s start with a business use case. Here we see the header of a trade transaction with Great Britain as the ship-to country and China as the ship-from country.
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Slide 59 - Customs Duty and Tax Calculation on Trade Transactions
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The item we are using in the example is the NEEDLE ROLLER.
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Slide 60 - Customs Duty and Tax Calculation on Trade Transactions
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We'll execute compliance rule screening to assign the set of value qualifiers. We're assigning the following value qualifiers:
• Bank Fee
• Brokerage Fee
• Domestic Inland Freight
• FOB Value
• Insurance
• International Freight
• Invoice Value
• Storage Fee
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Slide 61 - Customs Duty and Tax Calculation on Trade Transactions
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Slide notes
Here we see these value qualifiers. Each one is associated with a method of calculation: ENTERED MANUALLY or FORMULA DRIVEN.
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Slide 62 - Customs Duty and Tax Calculation on Trade Transactions
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For those value qualifiers flagged as ENTERED MANUALLY, you can enter the corresponding value or amount. In this case, the Invoice Value is 50000 CNY.
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Slide 63 - Customs Duty and Tax Calculation on Trade Transactions
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After entering the values, execute compliance rule screening to assign the formulas and calculate the values based on these formulas. You can see the formulas assigned to the different value qualifiers flagged as FORMULA DRIVEN.
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Slide 64 - Customs Duty and Tax Calculation on Trade Transactions
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Once you have the values required to calculate customs duty and taxes, run the action Estimate Duty & Taxes. This action makes a call to an external tax engine (in this case the Descartes tax engine). You will get a confirmation that the duty and taxes were successfully received.
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Slide 65 - Customs Duty and Tax Calculation on Trade Transactions
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You can see the DUTY and the VAT values. These two value qualifiers are flagged as CALCULATED EXTERNALLY.
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Slide 66 - Setup To Calculate Customs Value, Duty and Taxes
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If the trade transaction is transacted under a specific Free Trade Agreement (FTA), this FTA can be transferred using ‘TRADE_PROGRAM’ Trade Transaction Reference Number. If an FTA is specified, duties specific to this FTA are applied, otherwise general or default rates are applied.
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Slide 67 - Additional Resources
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And finally, let's review additional resources.
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Slide 68 - Additional Resources
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Here are some additional resources.
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Slide 69 - GTM Specific Resources
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This slide includes information about Transfer of Information Sessions available for GTM releases.
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Slide 70 - GTM Specific Resources
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Slide notes
This slide includes My Oracle Support information for GTM training and documentation.
This concludes this presentation, thank you for listening. You can easily pause and rewind any of these slides if you require additional time to take in the detail.
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