data/knowledge_docs/KDOC-0008_example_commodity_trading.md

Worked Example: Maltodextrin DE 25 Classification

Scenario

A new product "Maltodextrin DE25 Food Grade" needs classification. It appears in SAP_TC2 as "Maltodextrin DE25 Food Grade" and in SAP_CFIN as "MLTDX-DE25-FG".

Analysis

1. Product name contains "Maltodextrin" → starch derivative
2. DE value = 25 → exceeds 20 threshold
3. Therefore: CN 1702.90 (not CN 1702.30)
4. VAT rate: standard (19% DE, 21% NL)

Common Confusion

This product is often confused with "Maltodextrin DE20 Grade A" which has DE = 20 (at the boundary) and qualifies for reduced rate.

Decision: CN 1702.90, standard VAT rate

Rule: IF maltodextrin AND DE > 20 THEN CN 1702.90