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Commodity Codes
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Commodity codes are the WTO code for a product and are used throughout the world for imports and exports.
We utilise a simplified approach for this within the system however you are able to use the full codes if you so wish. They are used for reporting only within Vision Commerce.
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To create a Commodity Code you will need to have set up your Product Type Codes |
Commodity Codes in Vision Commerce are used to classify Products; every Product should have the correct Commodity Code so that the Type of Product can be identified.
Products assigned the wrong Commodity Code will be assigned the wrong Taxes and Duty
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It is your responsibility to ensure your Commodity Codes are set up correctly and that Products are assigned the correct Code
Once you have saved the Commodity Code for the first time, you are unable to change the code.
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| title | Duty Elements |
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This screen enables you to maintain Excise Duty and Customs tables.
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Some of the fields in this section are used when setting a new rate but you can also change the Excise and Customs Calculation type.
Use Codes that are defined by HMRC when creating new Duty Rates
For example 451 for Spirits
Once this has been saved for the first time you are unable to change the Code and Description
The method of calculation will be used with both the Excise and Customs are
LOL - Litres of Liquid (In general used by Wines)
LOA - Litres of Alcohol (In general used by Spirits)
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If you change the method of calculation it applies to Previous, Current, and New Duty Rates. |
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Current and Previous effective dates and current Excise Duty and Customs Duty Rates respectively
The Effective Date is the date that these rates come into operation.
If you are creating a new Duty then the date will show the current date.
The Current Excise and Customs Duty Rates will be shown in fields against the LOL or LOA labels depending on which was chosen during setup.
If you are creating a new Duty then the values here will all show zero.
A number of pre-loaded commodity codes will exist on any new system and you can add to this yourself, just be careful as the code can not be altered afterwards.
Duty Elements (Excise and Customs)
This form enables you to maintain duties applicable to your products. This is a combination form which allows a single entry for both excise duty and customs duty for any product.
Goods being imported to the UK are subject to customs duty; goods being used for domestic use within the UK are subject to excise duty.
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For simplicity we provide a single Duty Rate calculation which contains both the customs duty and the excise duty amount on the same record. Where you are using the system for En Primeur (Advanced Purchase) and the goods you are clearing have a preference/quota for the customs duty making the duty 0.00 then you should setup an additional duty rate, otherwise the duty and vat invoice will calculate customs duty should you land the stock as customs duty NOT paid e.g. 333 → 333P - Set the customs duty rate to be 0.00 Any products fitting the category of “having a preference of 0.00” can then be added to this duty rate which will stop unnecessary calculations of customs duty. As of Jan 2024 all wine goods from the EU have a preference so they fit this category and could be setup using the 333P duty rate. |
Method of Calculation
We utilise specified routing and calculation methods some of which are specified by the government departments responsible for the collection of duties, it is not always a simple calculation when you have rounding and truncation to provide within the calculations.
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If you change the method of calculation it applies to Previous, Current, and New Duty Rates. |
Rate / LOL
Calculation Basis : Litres of Liquid (LOL) X rate per litre of liquid
The stock information held for LOL is per case also calculated by taking the singles per case (SPC) X single size (SS)
Rate / LOA
Calculation Basis : Litres of Alcohol (LOA) X rate per litre of alcohol
LOA per case is derived from LOA * (Stength ABV / 100)
e.g. 9litre case which is 12.5% would be 9 * (12.5/100) = 1.125 litres of alcohol per case and if this was a 12 bottle case this is 0.09375 per bottle
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Custom calculation use 5 decimals when calculating and then a formula of truncation when presenting the total once everything is summed together. |
Tax Type Code
This refers to the code field on the form, where we always specify that you should use the HMRC code in the system, until 1 August 2023 the UK HMRC codes were all 4xx and will change to 3xx on that date.
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Current and Previous Sections
This section simply shows the current and previous rates you charged for this specific tax code.
Add New
When you have a new rate to enter, ensure you specify the date, enter the values in both the excise and customs field, even if one has not changed you need to enter both and then apply this by pressing the save button.
Additional Notes
HMRC publish rates in LOA, LOL, HLOA, and HLOL
In general, the wine rate is published in HLOL so please remember, your calculation needs to change this to LOL.
You will have to enter a Customs Duty Rate in addition to an Excise Duty Rate, this cannot be left as zeros.
The use of this is then controlled by the Customs Duty Paid Flag on the Purchase Order entry as shown in more detail on the Purchase Order Tab page.
Excise Duty Rate in either LOL or LOA – this is the UK Duty
Customs Duty Rate in either LOL or LOA – this is the EU Duty
See the HMRC Website pages regarding Duty Rates:
https://www.gov.uk/government/publications/uk-trade-tariff-excise-duties-reliefs-drawbacks-and-allowances/uk-trade-tariff-excise-duties-reliefs-drawbacks-and-allowances