Accounting and Revenue Management
Our accounting and payment solution includes a calculation module that provides the flexibility for calculating duties, taxes, and other fees owed based on the variables set by Customs. The calculation module comes pre-configured but can quickly be optimized to work in your border environment based on the calculation rules desired by Customs or the Ministry of Finance. Different combinations of duties, taxes, and other fees are provided in the calculation module. Each specific type of tax, duty rate, and other fees (e.g. excise tax) can be calculated and accounted for individually in the system.
The HS Code will also specify a specific duty rate pre-determined by the Customs Tariff, and calculate the overall duty and taxes (e.g. excise tax and or Value Added Tax) using the ad valorem rate (value for duty) declared on the import or export declaration, as well as tax per unit, tax per weight, tax per volume, and or a fixed fee per transaction. Our solution is nimble and flexible enough to easily configure the approach on which a particular duty, tax, or other fee is calculated.
In many countries, the VAT or Goods and Services Tax (GST) is calculated and collected on top of the duty paid value. Our application can apply additional logic to collect excise tax or other fees on luxury goods, alcohol, tobacco, and jewelry. Many countries will calculate the duties based on CIF (Cost, Insurance, Freight) or FOB (Free on Board). Our solution can accommodate either approach. following calculation, a summary of commodity classification, origin, and valuation is provided for the importer to make payment. Rule logic can be set in the system if duties/taxes or other fees are to be exempted or deferred.
Payment can be facilitated through a payment gateway, and can also accommodate Electronic Funds Transfer (EFT) through common service providers like “Plug and Pay”. Our payments module is currently configured to integrate with this service and able to:
• Send payment notifications to financial institutions.
• Update declaration records with payment confirmation.
• Notify client of payment decline, with decline reason.
• Notify client of payment success.
Our system will provide for collection and payment using credit card, debit card, bank transfer, cash, and cheque. Once payment has been received, the system can be linked to declaration processing and configured to generate an electronic delivery authority to the port community system or terminal operator notifying that the goods have been released. A paper copy can also be provided to the importer to present to the terminal operator to confirm release of their goods or commercial shipment. At this point the importation can enter the economy and released from Customs control.
Want to learn more? Contact us.