What is preferential customs duty rate in SAP SD-FT - Foreign Trade?

SAP Term: preferential customs duty rate

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A reduced customs tax rate on the importation or exportation of merchandise.

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• Key Concepts: 
  Preferential customs duty rate is a type of reduced rate of duty that is applied to goods imported from certain countries. This rate is usually lower than the standard rate of duty and is applied to goods that are imported from countries with which the importing country has a trade agreement. 
  
  How to use it: 
  In SAP, preferential customs duty rate is managed in the SD-FT Foreign Trade module. This module allows users to set up preferential customs duty rates for different countries and products. The preferential customs duty rate can then be applied when creating sales orders or invoices for goods imported from those countries. 
  
  Tips & Tricks: 
  It is important to ensure that the preferential customs duty rate is correctly set up in SAP before creating sales orders or invoices for goods imported from countries with which the importing country has a trade agreement. This will ensure that the correct rate of duty is applied and that any potential savings are realized. 
  
  Related Information: 
  For more information on preferential customs duty rates, please refer to the SAP Help documentation on SD-FT Foreign Trade. Additionally, you can find more information on trade agreements and preferential customs duty rates on the World Trade Organization website.