What is customs tariff preference in SAP SD - Sales and Distribution?

SAP Term: customs tariff preference

• Component: SD

• Component Name: Sales and Distribution

• Description: Customs benefit made possible by unilateral, bilateral, or multilateral agreements. An importer can import his goods on the basis of such an agreement either customs-free or at a reduced rate.

Smart SAP Assistant

• Key Concepts: 
  Customs Tariff Preference is a feature of SAP Sales and Distribution (SD) that allows companies to take advantage of preferential customs tariffs when importing goods from certain countries. This feature helps companies save money on import duties and taxes, as well as reduce the time it takes to process customs paperwork. 
  
  How to Use It: 
  In order to use the Customs Tariff Preference feature, companies must first configure the system to recognize the preferential tariffs for the countries they are importing from. This can be done by setting up a “preferential tariff” in the system. Once this is done, the system will automatically apply the preferential tariff when processing orders from those countries. 
  
  Tips & Tricks: 
  It is important to keep in mind that preferential tariffs are only applicable for certain countries and goods. Therefore, it is important to check with local customs authorities to ensure that the goods being imported are eligible for preferential tariffs. Additionally, it is important to keep up-to-date with any changes in preferential tariffs as they can change over time. 
  
  Related Information: 
  For more information on Customs Tariff Preference, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide detailed information on how to configure and use this feature in SAP SD.