Magento extension to charge import duty & taxes and offer a DDP service
Magento extension to charge import duty & taxes – Installation guide
Date: 28 July 2012 Version 1.0
Download this manual as PDF here
The DutyCalculator extension "Charge import duty & taxes" enables you to charge accurate import duty & taxes at moment of purchase and offer your products at a total landed cost to your international customers. With the extension, you can classify products, calculate and charge accurate import duty & taxes at checkout and generate commercial invoices and packing lists with all required information.
Now your international customers can make informed purchase decisions, with the confidence that they will not face any unexpected customs charges. Further advantages are a better customer experience and reduced return shipments and unpaid custom charges.
The DutyCalculator extension:
Covers over 380,000 products for 76 key import countries. We are adding products and countries on a daily basis. If you feel we do not cover your product, you can file a request and we will add it within 48 hrs.
Is fully customizable to match the style of your website. You can opt to show the import duty & tax charges in the shopping cart, on the checkout page or both.
Enables you to classify your product catalog yourself, or make use of DutyCalculator Managed Classification Services.
Calculates accurate import duty & taxes at moment of purchase to offer a landed cost price.
Generates commercial invoices and packing lists, with accurate, up-to-date 10-digit HS codes for country of destination.
Includes the refund of import duty & taxes when a customer returns a product.
Offers full reporting functionality of all your international transactions.
How it works
The DutyCalculator extension covers 3 key parts:
1) Classification of products: Import duty & tax rates depend on the country of destination, type and value of product. To determine the accurate rates, you need to classify your product catalog and select for each product the appropriate DutyCalculator category. You can do this product by product from the Magento Product Information section or you can make use of DutyCalculator Rapid Classification tool.
2) Calculation of import duty & taxes: Using the product classification, product values and shipping costs, DutyCalculator calculates accurate import duty & taxes and ads these to the charges in the checkout. All import duty & tax information is added to the order info, at product level.
3) Generation of documents: Once an order is confirmed, DutyCalculator generates the commercial invoice and packing lists, including 10-digit HS codes for country of destination. These documents are available for printing from the Magento order section.
The DutyCalculator extension requires a Dutycalculator account and API key. Prices for the API account start at $99/month which includes 5000 free calculations. You can get your account and API key here. The extension itself is free to download and install.
Guidance with installation and configuration
Magento Community version 1.5 and higher or Enterprise version 1.9.1 and higher
Follow this link and copy Magento connect 2.0 extension key.
Go to System > Magento Connect > Magento Connect Manager and "Paste extension key to install".
Go to System > Magento Connect > Magento Connect Manager and upload package file using "Direct package file upload".
Clear Magento cache under System > Cache Management menu.
Log out of the admin and log in back.
DutyCalculator configuration is located under System > Configuration > DutyCalculator Extensions > Charge Import Duty & Taxes.
First of all you will need to input your DutyCalculator API key.
Then you need to select the desired service delivery type: Duty Delivery Paid or Duty Delivery Unpaid. If you choose “Delivery Duty Paid” the extension will include import duty & taxes to the grand order total and will charge customer any import duty & taxes due. In case you select “Delivery Duty Unpaid”, the extension will only show any import duty & taxes due on shopping cart page and checkout page or inform the buyer but will not charge this.
To make sure that extension uses the correct product weight unit, you will need to set up weight unit in the configuration. By default the weight is measured in pounds.
If your products do not have their weight set, you can override the weight setting for all products in few minutes by selecting “Override products weight” and entering the weight that should be used for all products. Alternatively, you can set the weight for each product individually.
Then you need to select for which destination countries you would like to use the extension for. For a list of all destination countries covered by the extension go here. Also you can set the shipping methods for which you would like to use the extension. If multiple options are selected – extension will be used for all of them.
If you use the Rapid Classification Tool, here you can specify which attributes will be included in the product catalog download file from Magento. By default the product description is included. If you have fields that include make and type of material, it is recommended to include these as well.
If you use the extension to generate Commercial Invoice and Packing List you can activate this here and provide the required details for these documents. By default the product name is included. If you have fields that include make and type of material, it is recommended to include these as well.
Guidance with operations
Classification of goods
To be able to have accurate import duty and taxes, each configurable product needs to be classified and mapped to a DutyCalculator category. This can be done product by product within Magento, or you can do it for the entire product catalog using DutyCalculator rapid classification tool.
Classification of goods – from within Magento
In Magento admin panel Go to Catalog > Manage Products. Then select Add new product or edit existing product. Under "Prices" tab you can select a DutyCalculator category for each product. The extension will suggest most relevant DutyCalculator categories based on the product name. If the product has been created as configurable product – it will also set a category for all sub-products.
Classification of goods – Using Rapid Classification Tool
In Magento admin panel go to Catalog > DutyCalculator Rapid Classification Tool. You have options to include only enabled products, exclude not visible individually sub products (if the product is a configurable product and its sub products are not visible individually in search or catalog – it will exclude such products and save time during classification). Also, there is an option to include all products or only products that haven’t been classified previously (include only products that have no DutyCalculator ID option). Click on "Export File" button and download the CSV file.
Go to www.dutycalculator.com. Log in under your account. Under "Classify products" menu choose "Rapid classification tool". Click on "Upload New File" and upload CSV file you have from Magento, enter all data, as "Data delimiter" - select Comma (,).
The tool will auto-suggest classifications based on keyword matching. You can review and adapt these classifications and, when ready, click on "Download DutyCalculator category IDs" button. Also, DutyCalculator team can classify the file for you, just select “Let experts classify the file for you” and your catalog will be classified within 2-4 business days for catalogs under 1000 unique line items. Larger catalogs may take longer.
Once you are done with classification of items on DutyCalculator side - you'll need to go back to Magento admin panel Catalog > DutyCalculator Rapid Classification Tool section and upload the file which you've just generated on the DutyCalculator website.
Orders & fulfillment – User experience
During order checkout Charge Import Duty & Taxes extension pings DutyCalculator to get import duty & taxes based on shipping address, shipping cost and products in the shopping cart. If the extension is configured as Delivery Duty Paid - import duty and taxes will be included in the grand total and added to the final charges. This is also reflected in the email confirmation that the buyer receives.
If the extension is configured as Delivery Duty Unpaid – import duty and taxes will not be included into the customers invoice. Import duty and taxes will be displayed on Shopping cart and Checkout pages to inform the buyer of any import duty & taxes.
Orders & fulfillment – Backend experience
If the extension is configured as Delivery Duty Paid, after order has been placed Charge Import Duty & Taxes extension will include import duty & taxes in admin panel for selected order.
After you "Ship" the order in Sales section of Magento admin - DutyCalculator generates Commercial Invoice and Packing List which are necessary for customs if it turned on in the configuration.
Commercial Invoice and Packing List can be downloaded when you are viewing information about shipments and click on button "Print". Also when viewing the table with all the orders, you can mark with a checkbox few orders and select "Print commercial invoices & packing lists" from "actions" dropdown on top right of the orders table.
Here is an example of the Commercial invoice.
Here is an example of the Packing list.
If you need to create credit memo for the order Charge Import Duty & Taxes will add amount of charged import duty & taxes to refund amount.
All orders, including import duty & tax calculation results, commercial invoice and packing list are stored on DutyCalculator.com for your reporting purposes. The reporting section is available in the dropdown menu which becomes active when you hover over your email on the top right of the screen. The section is called "Transactions". You can extract reports as well.