Import Duty Calculations

Overview

The Import Duty Calculations module enables organizations to configure import duty rules for purchased items based on the Country of Origin, destination (Ship To) location, and duty percentage. These rules help automate the estimation of import duties during the procurement process, ensuring more accurate landed cost calculations and reducing manual effort.

Once configured, the system applies the appropriate duty rule when processing Purchase Orders, Item Receipts, and Bills, provided the Enable Import Duty Calculations App Config is enabled. The estimated duty amount is displayed in the Estimated Duty Amount field located under the Other Info tab of the Purchase Order.

Prerequisites

Before using the Import Duty Calculations module, enable the feature by navigating to:

Menu → Configuration → App Config → Purchase

Enable the following App Config:

• Enable Import Duty Calculations

Once enabled, the system applies the configured duty rules to supported purchasing transactions, including:

• Purchase Orders

• Item Receipts

• Bills

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Fields

Field	Description
Category	Select the category to which the import duty rule applies. Categories allow duty calculations to be organized based on predefined classifications.
Item Number	Specifies the inventory item for which the import duty rule is being created. The selected item will use the configured duty percentage whenever the defined conditions are met.
Country of Origin	Specifies the country where the imported item was manufactured or originated. Import duty calculations are determined based on this country in combination with the shipping destination.
Ship To Country	Specifies the destination country where the purchased goods are being shipped. The system uses this value along with the Country of Origin to determine the applicable duty rule. This is a mandatory field.
Ship To State	Specifies the destination state or province within the Ship To Country. This allows duty rules to be configured for regions where import duties or taxes vary by state or province. This is a mandatory field.
Duty %	Defines the import duty percentage to be applied when the configured rule matches the purchase transaction. The system uses this percentage to calculate the estimated import duty amount.

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How It Works

1. Enable Import Duty Calculations in the Purchase App Config.

2. Create one or more import duty rules by defining the applicable item, country of origin, shipping destination, and duty percentage.

3. Create a Purchase Order for the configured item.

4. When the Purchase Order matches a configured duty rule, XoroERP automatically calculates the estimated import duty.

5. The calculated value is displayed in the Estimated Duty Amount field under the Other Info tab of the Purchase Order.

6. The configured duty rules are also applied during Item Receipt and Bill processing to maintain consistency throughout the purchasing lifecycle.

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Use Cases

Calculate Import Duty Automatically

Automatically estimate import duty for purchased items based on their country of origin and shipping destination, eliminating manual calculations.

Improve Landed Cost Estimation

Include estimated import duties during the purchasing process to obtain a more accurate view of the total acquisition cost before goods are received.

Support Country-Specific Duty Rules

Configure different duty percentages for the same item depending on where it originates and where it is being shipped, helping organizations comply with varying import regulations.

Reduce Manual Errors

Standardize import duty calculations using predefined rules, ensuring consistent duty estimates across Purchase Orders, Item Receipts, and Bills.

Streamline International Procurement

Organizations purchasing goods from multiple countries can maintain centralized import duty rules, allowing procurement teams to process international purchases more efficiently.

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Result

When a Purchase Order satisfies the configured import duty criteria, XoroERP automatically calculates the applicable duty amount and displays it in the Estimated Duty Amount field under the Other Info tab. This estimated duty is carried forward throughout the purchasing process, providing better visibility into import-related costs.