Managing Additional US HTS Codes and IEEPA Tariffs in SAP GTS

US ADDITIONAL HTS CODES

The US Harmonized Tariff Schedule (HTS) includes additional codes in the 98/99 chapter, which are used for specific trade programs, additional tariffs, and special duties. These codes are applied on top of the main HTS classification to determine the final and additional duty rates for specific imports.

Example Additional HTS Codes:
• HTS 99038803: Section 301 additional duty for certain Chinese imports (25% additional duty).
• HTS 99030120: IEEPA (International Emergency Economic Powers Act) additional duty (10% additional duty).

These additional tariffs have become a critical factor in managing US imports, particularly for products from China, and businesses must ensure that their systems are configured to handle them correctly. Currently, the SAP GTS system can handle only one 98/99-series additional HTS code in the import declaration using B105 (Additional Customs Duty) to capture the additional tariff. However, in scenarios where a customer needs to apply multiple 98/99-series HTS codes for the same line item (for example, both 99038803 for Section 301 and 99030120 for IEEPA) for instance Steel, Aluminum products with Country of Origin China/Hoing Kong, the current configuration will not suffice. In such cases, the system needs to be adjusted to accommodate multiple additional duty calculations for a single item.

HANDLING ADDITIONAL DUTIES IN SAP GTS

This document outlines the process of managing additional HTS codes and duties in US import declarations within SAP GTS.

Step 1: Configure External Duty Type Mapping

Define External Customs Duty Rate Types for Data Upload. In this Customizing activity, you define the external customs duty types for data upload and assign them to the customs duty types of SAP GTS.
Path: SAP Global Trade Services à Customs Management à Calculation of Customs Dutyà Define External Customs Duty Rate Types for Data Upload

Step 2: Define Calculation Procedure for Customs Duties

In this Customizing activity, you define the structure the system uses to calculate customs duties.
Path: SAP Global Trade Services à Customs Management à Calculation of Customs Dutyà Define Calculation Procedure for Customs Duties

Step 3: Upload 98/99 US Additional HTS Code from Data Provider

Ensure that additional HS codes (98/99 Chapter) and their duties provided by the data provider are uploaded into the system for accurate duty calculation.

Step 4: Create a New Duty Type for IEEPA Duties

Create a New Duty Type for IEEPA Duties to handle IEEPA Tariffs in custom declarations, create a new duty type: Z105, specific to IEEPA.
Path: SAP Global Trade Services à Customs Management à Calculation of Customs Dutyà Define Type of Customs Duty
In this Customizing activity, you define the Z105 duty for calculating customs duties. Path: SAP Global Trade Services à Customs Management à Calculation of Customs Dutyà Define Calculation Procedure for Customs Duties

Step 5: Define Calculation Procedure for Customs Duties:

In this Customizing activity, you define the Z105 duty for calculating customs duties.
Path: SAP Global Trade Services à Customs Management à Calculation of Customs Dutyà Define Calculation Procedure for Customs Duties

Step 6: Define an additional tariff rate for Z105 under IEEPA regulations.

Goto T-code /SAPSLL/TLC_CUSB and maintain the duty rates.

Step 7: US Additional HTS Duty Calculation within the Customs Declaration

Example: Importing a Spiral Casing from China
• Main HTS Code: 8707100040 Normal Trade Relations (NTR) Duty Rate: 2.5%
• Section 301 Additional Duty: HS Code: 99038803, Duty Rate: 25% and Captured in Duty Type: B105
• IEEPA Additional Duty: second HS Code: 99030120 Duty Rate: 10% and Captured in Duty Type: Z105

Value of goods = $25,000
Normal Trade Relations (NTR) Duty Rate = 2.5% NTR Duty = $625
Section 301 Additional Duty (25%) (B105 - Additional Code 99038001) Duty = $6,250
IEEPA Additional Duty (10%) (Z105 - Additional Code 99030120) IEEPA Duty = $2,500

Step 8: IDOC Communication and Duty Amount Population

Once the import declaration is validated, the Entry Summary ACE (AE) is submitted to the customs. This submission triggers the creation of an IDOC for communication with CBP.

In the standard SAP GTS system, the newly created duty type Z105 (for IEEPA duties) will not automatically capture the duty amount from the customs declaration and pass it to the IDOC. To ensure the accurate transfer of duty data, we need to implement the BADI /SAPSLL/CUS_ECC.

The BADI /SAPSLL/CUS_ECC allows communication with customs authorities via EDI. Specifically, within the method MODIFY_IDOC_DATA, the duty amount for Z105 should be populated in segment 50 of the IDOC. After the implementation, test the process by submitting an Entry Summary ACE (AE) and ensure the correct duty values appear in the IDOC. This ensures that the duty amounts for IEEPA additional duties are correctly captured and transmitted to CBP.