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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.

Are you not using ATA Carnet...? If not, here is an article about their alternatives, including Temporary Admission customs declarations: https://www.businesswest.co.uk/carnet-alternatives You could potentially use authorisation by declaration  .

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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.

Hi S Newbold, Is your customer's UK office a branch or a subsidiary...? In my humble opinion - if you are invoicing your customer's UK subsidiary, then this is likely to be treated as a local sale, with VAT charged. Depending on when the ownership rights to the goods were transferred onto the UK subsidiary, the export could not have been yours - but the subsidiary's. It could potentially be that their invoice raised onto the EU office should have been VAT 0%-rated. This invoice would have been the basis of import valuation in the EU. However, if the UK office is a branch (not a separate legal entity from its parent), then, I think, you would be invoicing the EU office directly with 0% VAT for goods. Under VAT Notice 741A services may also be accepted for 0% treatment (work on goods for export).