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<\/p>\nAn import invoice does not always show the figure that must be declared as the customs value. Freight, cargo insurance and the agreed Incoterms rule can require additions or deductions before customs duty is calculated.<\/p>\n
The main framework below concerns goods imported from outside the EU into its customs territory. \u201cEurope\u201d is not one customs jurisdiction: the United Kingdom, Switzerland and other non-EU countries apply their own legislation. A delivery through several European countries therefore needs a clearly identified place of entry and import procedure.<\/p>\n
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Under Article 70 of the Union Customs Code, the primary valuation method starts with the price actually paid or payable for goods sold for export to the EU, provided the method’s conditions are met. Articles 71 and 72 govern relevant additions and exclusions. The European Commission’s customs valuation overview<\/a> also explains the alternative methods used when the transaction value cannot be applied.<\/p>\n Customs value is not the same as duty payable. An ad valorem duty is calculated using the applicable tariff rate, while classification and origin also matter. Nor is customs value necessarily the final taxable amount for import VAT<\/a>: that base can include customs duty and qualifying incidental costs to the relevant destination, to the extent they are not already included.<\/p>\n Identify the valuation entry point before splitting the freight bill. For road or rail transport this is normally the first EU land frontier crossed. Sea transport generally refers to the relevant EU arrival port under the applicable rules; air transport has its own place-of-introduction and apportionment provisions. The warehouse where goods are eventually cleared or delivered is not automatically the valuation boundary.<\/p>\n Transport, insurance and transport-related loading and handling to the place of introduction must be considered when not already included in the price. Do not add every terminal charge indiscriminately: what the charge covers and where the operation occurs matter. A separately identifiable unloading charge at the place of introduction may be treated differently from pre-entry handling.<\/p>\n Transport after EU entry can be excluded from transaction value when the legal requirements are met and the amount is distinguishable and supported. For a single through-freight invoice, obtain a substantiated breakdown rather than inventing a deduction. Air freight requires the applicable Annex 23-01 percentages under Implementing Regulation (EU) 2015\/2447, not a general assumption that all modes can be divided by kilometres.<\/p>\n Incoterms 2020<\/a> allocate contractual responsibilities, costs and risks. They do not override customs valuation law. Record the named place and the version of the rules, and establish what the invoice actually includes.<\/p>\n The relevant figure is the premium attributable to the shipment, not the insured sum. Where transport insurance is paid separately, identify the amount relating to the journey to EU introduction and avoid adding a premium already included in the goods invoice. An uninsured consignment does not justify inserting an invented insurance charge.<\/p>\n For an annual or floating policy, keep a documented allocation method linked to the consignments it covers. For example, allocating a \u20ac2,000 premium across \u20ac1,000,000 of equally rated insured shipments gives 0.2%, or \u20ac100 for a \u20ac50,000 shipment. This is an illustration, not a statutory rate; different risks or uninsured movements require an appropriate adjustment.<\/p>\n There is an important distinction between adding a separately incurred premium and deducting insurance already embedded in the seller’s price. French Customs’ Incoterms guidance<\/a> explains that seller-included insurance for intra-EU transport is not deductible simply by applying Article 72(a), which concerns transport costs. Do not extend the post-entry freight deduction to insurance without checking the legal treatment of the actual charge.<\/p>\n Assume the transaction value method is available, the goods and route are comparable, no other valuation adjustments arise and the \u20ac100 insurance premium covers only transport up to EU introduction.<\/p>\n Both calculations produce a customs value, not the duty or VAT bill. The \u20ac300 excluded as post-entry transport can still be relevant to the import VAT base under the applicable destination rules. No duty rate is assumed here.<\/p>\n Request support coordinating the transport-cost breakdown and import documents<\/a> before the declaration is prepared.<\/p>\nTransport costs up to the place of entry into the EU<\/h2>\n
Adjustments under EXW, FCA, CIF, CIP, DAP and DDP<\/h2>\n
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The insurance premium and allocation between consignments<\/h2>\n
Two worked examples without double counting<\/h2>\n
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Supporting documents and common declaration errors<\/h2>\n
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