About Tax Free Imported Materials

Some countries require manufacturers to track the inventory movement of tax-free imported materials that are used to build products that, when completed, are shipped back to the country of origin.

The system allows you to track inventory as tax-free imported materials. You enable this functionality by selecting the Track Tax Free Imported Materials check box on the Inventory Parameters form.

You can set up tax systems within the system to allow for the exchange of materials without import tax, duties, or VAT on materials that are tracked as tax-free imported materials.

Note: Selecting Track Tax Free Imported Materials does not change how the system calculates taxes on these items. You must set up your tax systems appropriately.

Utilities for Tax-Free Materials

You can use these system utilities with tax-free imported materials:

Delete Tax Free Imports: This utility deletes tax-free imports and associated records.
Delete Tax Free Exports: This utility deletes tax-free exports and associated records.
Tax Free Imported Materials Process Utility: Use this utility to search current BOMs and enable lot tracking for parent items that contain tax-free imported materials.

Note: Data collection does not support the tracking of tax-free imported materials.