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Posted Mon, 08 Aug 2022 11:00:53 GMT by newtocustoms
Hello, I am having a hard time figuring out the correct way to declare Value build-up, when it comes down to transport charges. For example : 1. A shipment coming from Italy with Incoterm FCA (or EXW) has total freight cost of 1000 EUR. 600 eur of these are the cost from Italy to UK border, 400 eur are for the delivery from border to the final address of the consignee. Is it correct to assume that I should declare 600 EUR as AP (freight costs) and 400 EUR as AV (adjustment for VAT value)? 2. The same example, but terms of delivery are DAP and the freight cost is included in the invoice value. Is correct just to declare 400 EUR BA (Costs of transport and insurance after arrival at the place of introduction, which have been included in the declared value.) or I`m missing something? Thanks in advance!
Posted Tue, 16 Aug 2022 10:30:30 GMT by Customs oldtimer
You would be best to look at notice 252 that deals with the valuation of imported goods so you get an understanding of how the values are built up. https://www.gov.uk/government/publications/notice-252-valuation-of-imported-goods-for-customs-purposes-vat-and-trade-statistics. In the simplest terms Customs duty is based on the cost of the goods plus freight & insurance (CIF) Import VAT is based on the CIF plus inland freight plus the import duty. The details of how to enter this to the declaration depending on the Incoterm Rules used is in volume 3 of the tariff https://www.gov.uk/government/publications/cds-uk-trade-tariff-volume-3-import-declaration-completion-guide/group-4-valuation-information-and-taxes. You will need to look at the relevant parts for CHIEF or CDS depending on which system is being used.
Posted Tue, 30 Aug 2022 09:32:59 GMT by HMRC Admin 2
Hi,

You can find information on what action is required in section 15 of the following guidance.

Notice 252: valuation of imported goods for customs purposes, VAT and trade statistics

Thank you.

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