Regarding Invoice of Custom Duty, Import Duty & Other Charges

My Company have imported 6 pkgs of Parts for Heavy Machinery by Sea LCL. Two invoices has been submitted by Licensed Customs Broker. We have got this kind of invoice for the first time so no idea which ledger/group will be assigned for this kind of expenses. Please suggest us. Details of expenses has been enclosed herewith.1st Invoice.[Duty(Sea Imp), Freight(Sea Imp), Stamp Duty Sea Imp & Registration Fee- Reimbusable]

2nd Invoice with common SAC Code: 996712 [Agency Charges, Documentation Charges, E Sanchit Filing Charges, Forklift Charges, Customs Examination Charges, CMC Charges, Crane Charges, Scanning NOC charges, Dock charges, No Objection Charges, Loading Charges,& transportation Charges]

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Hi Sandip,

For accounting the customs and import-related expenses, here’s a suggested way to classify and record the entries in your books:

1st Invoice: (Custom Duty, Freight, Stamp Duty, Registration Fee)

Ledger/Group Suggestions:

Expense Type	Suggested Ledger Name	Ledger Group
Customs Duty (Sea Import)	Customs Duty / Import Duty	Direct Expenses / Indirect Expenses (depending on costing method)
Freight (Sea Import)	Freight Inward / Freight Charges	Direct Expenses / Indirect Expenses
Stamp Duty Sea Import	Stamp Duty / Government Charges	Indirect Expenses
Registration Fee	Registration Fees / Govt Fees	Indirect Expenses

Note:

Customs duty and freight are part of the landed cost of imported goods, so these are usually added to the value of the inventory for cost calculation.
If you follow absorption costing or IFRS/AS per your accounting policy, you may capitalize these costs as part of the inventory cost rather than expense immediately.

2nd Invoice: (Agency Charges, Documentation, Scanning, Dock, Loading, Transportation, etc.)

Common SAC Code: 996712 (Support services)

Expense Type	Suggested Ledger Name	Ledger Group
Agency Charges	Agency Charges / Service Charges	Indirect Expenses
Documentation Charges	Documentation Charges	Indirect Expenses
E-Sanchit Filing Charges	Filing Charges / Customs Filing Fees	Indirect Expenses
Forklift Charges	Handling Charges / Material Handling	Indirect Expenses
Customs Examination Charges	Customs Inspection Charges	Indirect Expenses
CMC Charges	Contract Management Charges	Indirect Expenses
Crane Charges	Crane Charges	Indirect Expenses
Scanning Charges	Scanning Charges	Indirect Expenses
No Objection Charges	NOC Charges	Indirect Expenses
Dock Charges	Dock Charges	Indirect Expenses
Loading Charges	Loading Charges	Indirect Expenses
Transportation Charges	Transportation Charges	Indirect Expenses

Important points:

Most of these second-invoice charges are service expenses related to import handling and clearance; typically, they are expensed or included in the inventory cost based on your accounting policy.
If you capitalize the total import cost, include both invoices' amounts into the value of the imported inventory.
If expensed, record these under indirect expenses or admin expenses as per your chart of accounts.