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Posted Wed, 31 May 2023 13:27:39 GMT by Sunil Makim
can an import declaration have insurance costs mentioned as a charge within the invoice added as an 1. additional cost or 2.does it have to be mentioned specifically as an insurance additional cost ?>
Posted Thu, 01 Jun 2023 15:39:46 GMT by L M
In such cases I normally add the insurance cost in the declaration (value from the invoice line) but deduct it off the total value of the invoice in the header. Otherwise either the totals would not tally or the insurance value will be calculated twice by CDS for import valuation purposes. Same happens with transport cost mentioned as a separate line on DAP invoices.
Posted Thu, 01 Jun 2023 16:03:47 GMT by Sunil Makim
Thanks LM Transport costs are not accepted on DAP or DUP Incoterms . So if companies have this on the invoice , we add as additional cost. The question was Does the code for additions for Insurance have to be specifically mentioned , or can they be added as a additional cost without specifying it is for Insurance , to be compliant ???
Posted Thu, 01 Jun 2023 16:16:56 GMT by HMRC Admin 10
I would advise checking this guidance:
Which insurance costs must be included and can be excluded
or  contacting the Customs and International trade helpline on 0300 322 9434 with your query.
Posted Thu, 01 Jun 2023 19:36:49 GMT by Customs oldtimer
Under ICC DAP and DPU Incoterms there shouldn’t be any additional costs such as insurance and transport to add to the price as they should already be included in the invoice price which is why I suspect transport costs can’t be added separately. I assume that in the shipments you are seeing these costs are not already included in the invoice price as they should be with the chosen Incoterms.
Posted Tue, 06 Jun 2023 20:25:28 GMT by L M
Hi Sunil, The code for insurance costs in CDS is AK. However, as Customs oldtimer mentioned, insurance and transport costs should be invisible on customs invoices (included in product lines). If you do see an insurance (X) or transport (Y) cost line on a DAP invoice with a total value Z (it does happen :) ), it becomes tricky. It is probably the best to calculate them proportionally into the goods prices, then using value Z and Incoterms DAP in the header. Another option is to use pre-CIP(CIF) Incoterms (eg. FCA) for the goods values mentioned on the invoice, then adding the insurance X and /or transport Y values from the invoice as lines AK / AP-AQ; the invoice value in the header would then equal Z - X - Y (goods only). If you add insurance / transport as additional costs with Incoterms DAP in the declaration, I'd advise a manual calculation of expected duties and VAT, to compare with CDS results and ensure no costs have been counted twice into the imports value.

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