Value of Goods Delivered to the UK
How do I calculate UK import duty and other taxes?
How do I know the ‘value of the goods delivered to the United Kingdom’?
Unfortunately, there is not a straightforward answer to this. There are around 200 pages in Notice 252 describing how to calculate the value of your goods. Let’s have a look into the expert knowledge from our ChamberCustoms Brokers.
In general, to calculate the value of your goods, you need to consider the following elements:
The value of the goods
+
Transport to the UK
+
Insurance to cover the goods
+
Anything else related to the movement of these goods from Origin→The UK.
=
the ‘value of the goods delivered to the United Kingdom’
Understanding the International Commercial Terms (Incoterms®) would help you ascertain what’s already included in your invoice value.
ChamberCustoms presents training on Incoterms®
Let’s use our example of fresh Avocados imported from Mexico. But let’s have a twist and imagine that the avocados were grown initially in China.
Let’s say you sold the avocados for £500 to start with.
On top of that, you may have to spend £300 to transport them to a UK port, plus £10 to insure the goods.
The total value of these goods would therefore be £810 - and you would pay import duty on the total £810 rather than just the £500 that you paid for the avocados, to begin with.
There are other costs which we will have to consider later:
£500 - Avocados
+
£300 – Transport to Felixstowe, UK
+
£10 - Insurance
= £810
The Import duty at 4% = £32.40.
Your Customs Broker can help you navigate the rules so that you can ensure that you only include what requires to be included in the valuation of your goods to avoid overpaying duty.
Notice 252, in fact, also defines what you can remove from your costs. There may be some things that you can exclude, such as the marketing committee that you pay in Mexico or the cost of delivery from the point of entry in the UK to the destination in the UK.
What are the risks of getting the ‘value delivered to the United Kingdom’ figure wrong?
Under-declaring
If you under-declare the value of your goods, or if you incorrectly claim a preferential rate, you are technically defrauding HMRC, which is a civil infringement. Although you may not be smuggling goods into the UK, you are failing to pay the money owed, and this can attract civil penalties from HMRC. As strange as it may sound, the worst offences can become criminal prosecutions.
Over-declaring
If you over-declare and pay too much tax, you are still non-compliant, adding injury to blame. If you have over-declared, you may be able to go through a process to claim your overpaid duties back.
ChamberCustoms can help you claim your money back. Our experience and expertise are at your service to assist you. However, bear in mind that you have a limited amount of time to claim your money back.
Why use a customs broker or customs clearance agent?
The rules and regulations around importing goods are pretty complex, and it can be quite daunting to find the correct information. Using expert advice from a customs broker can save you time and money and avoid the risk of a fine from HMRC.
BESPOKE CUSTOMS ADVICE
Our team of customs experts have decades of operational experience in all aspects of customs. As well as advising clients we are also called on by government departments for our expertise in helping develop policies that will work for business.
A CUstoms broker near you
The ChamberCustoms network is never far from you with over 40 locations across the UK, from Inverness in the north to Dorset in the South. We operate in every country of the UK and we’re directly connected to all air, sea, ro-ro, and rail port inventory systems.