This article explains how Duty costs incurred by the vendor can be declared in an Enterprise Cost Submission
Duty Rates
Duty will be allocated automatically to your Cost Submission. The Duty % is entirely in the control of your Enterprise retailer in so far as they can save their own duty rates and codes in their Atelier Duty grid, and this will automatically be applied to their vendors' Cost Submission for qualifying finished jewels or components.
💡How to Find your Customer's Duty Grid
You can view this grid by navigating to Sourcing > Duty > then filter by your Enterprise Customer
Import Method
When you are building your Cost Submission, you have various options open to you in terms of how this duty % can be directed to be applied to your Bill of Materials:
- Direct Import
- Delivered Duty Paid
Direct Import
Use this when you do not need to declare and recover a duty fee - for example:- Exporting products to a retailer that will pay for the duty fees themselves
- Shipping products domestically to a retailer (or inside a duty-free zone such as the EU)
If you choose Direct Import your Cost Submission will not seek to identify a match on the customer's duty table for your Bill of Materials, as the customer has controls to apply their own duty elsewhere in Atelier, and the vendor is not including duty as a cost in the Cost Submission.
Delivered Duty paid
Use this when you do need to declare and recover a duty fee - for example:- Exporting products to a retailer that will not pay for the duty fees themselves
- Shipping imported products to a retailer within the same country
If you choose Delivered Duty Paid your Cost Submission will seek to identify a match on the customer's duty table for your Bill of Materials. If it can index you will see the relevant duty % applied. If it cannot index you will see a red error icon (see example image further down this page)
How Duty Indexes to Your Customer's Duty Grid
⚠️ Warnings
Duty will only index against grid if specific criteria are met:
- Shipped From and Shipped To are distinct countries
- Your Enterprise retailer's Duty grid contains a row that matches your Shipped From > Shipped To axis, relevant to the Duty Allocation you have selected in your Cost Submission
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If you select Duty Allocation = Component, this will enable duty percent at a component level and allow you to change the imported from at a component level.
If you select Duty Allocation = Finished Piece, this will apply the duty rate to the entire product and not enable you to choose a different imported from and duty rate at a component level.
Packaging Duty rate is separate from the entire piece and will always be present in the packaging modal.
In the image below, we can see the vendor has selected to include duty in the Cost Submission (Delivered Duty Paid) and is allocating at a Component level:
With this configuration of the Duty section, when the vendor opens any component level modal - we have used Stone in our example below - then the Duty rate will be automatically allocated upon population of the Imported From field, and will not be editable:
However, by changing the Imported From country, you can modify your duty rate - as long as your new Imported From country is also available on your customer's duty grid for the same component.
If your Enterprise retailer's grid does not contain a row that matches your Shipped From > Shipped To axis, relevant to the Duty Allocation you have selected you will see red error icons, however with your mouse for more detail as shown below:
💡 What to do if your Duty will not index?
You can easily request a missing duty rate from your Enterprise retailer's Duty grid. Read how here.
💡 How is Duty Applied in the Calculation?
The duty % value is applied to the cost you are declaring, either at total piece or component level, depending on your choice of Duty Allocation.
In the case of component allocation, you can have different duty rates for different components, and then these are multiplied by the component cost and summated.
Relevant Documentation Links:
How to zero rate a centre stone