The customs duty is a percentage of the customs duty assessable value of the item. Customs duty assessable value is the total of: CIF value of item in local currency. This is the sum of total FOB item value, freight, insurance, and other charges. In Purchase receipt, Users need to enter the rate for the selected freight type and Enter freight amount payable and Enter the code of the currency in which the freight is payable. Enter the exchange rate applicable for the specified currency. If it is the same as the home / base currency, then enter 1.
Daily exchange rate must be available. Enter the exchange rate in case the PO is raised in a currency other than the base currency. By default, the rates are retrieved from the exchange rate master. It is mandatory for calculating the tax.