What is duty drawback system in SAP SD-FT - Foreign Trade?

SAP Term: duty drawback system

• Component: SD-FT

• Component Name: Foreign Trade

• Description: The refund of all or part of customs duties, or domestic tax paid on imported merchandise that was subsequently manufactured into a different article or re-exported. The purpose of the drawback is to enable a domestic manufacturer to compete in foreign markets without having to include in the cost and sales price the duty paid on imported raw materials or merchandise used in the manufacture of the exported goods.

Smart SAP Assistant

• Key Concepts: 
  The duty drawback system in SAP is a Foreign Trade (SD-FT) component that allows companies to reclaim duties, taxes, and fees paid on imported goods. It is a process of refunding duties, taxes, and fees paid on imported goods that are then exported or used in the production of exported goods. This system helps companies reduce their costs associated with importing and exporting goods. 
  
  How to use it: 
  The duty drawback system in SAP is used to manage the process of reclaiming duties, taxes, and fees paid on imported goods. Companies can use this system to track the status of their claims, view the details of their claims, and generate reports for their records. The system also allows companies to set up automated processes for submitting claims and receiving refunds. 
  
  Tips & Tricks: 
  When using the duty drawback system in SAP, it is important to ensure that all relevant information is accurately entered into the system. This includes the details of the imported goods, the amount of duties, taxes, and fees paid, and any other relevant information. Additionally, companies should ensure that they are familiar with the regulations and requirements for claiming a duty drawback in their country or region. 
  
  Related Information: 
  The duty drawback system in SAP is part of the Foreign Trade (SD-FT) component. Companies can also use other components within SD-FT such as export control management and customs management to manage their international trade activities. Additionally, companies should be aware of any applicable laws or regulations related to international trade in their country or region.