What is customs territory in SAP SD-FT - Foreign Trade?

SAP Term: customs territory

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A territory, region, or country that is governed by the same customs regulations.

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• Key Concepts: 
  Customs territory is a term used in SAP Foreign Trade (SD-FT) to refer to a geographic area in which goods are subject to the same customs regulations. This area is usually defined by a country or group of countries, and goods entering or leaving the area must be declared to customs authorities. 
  
  How to use it: 
  In SAP Foreign Trade, the customs territory is used to determine the applicable customs regulations for goods entering or leaving the area. The customs regulations can include duties, taxes, and other restrictions on the movement of goods. The customs territory also determines which documents are required for the shipment of goods. 
  
  Tips & Tricks: 
  When setting up a shipment in SAP Foreign Trade, it is important to ensure that the correct customs territory is selected. This will ensure that the correct documents are generated and that all applicable duties and taxes are paid. 
  
  Related Information: 
  The World Customs Organization (WCO) provides information on customs territories around the world. This information can be used to ensure that shipments are correctly declared and that all applicable duties and taxes are paid.