Value calculation

Hello, could you explain how to calculate the transport cost (up to the EU border only) for our lorries which start in France and end in London, please? Should we use the total cost and divide by the number of miles up to Calais? Or is there a standard calculation method for this? Thanks

Thank you for your post. We are unable to advise based on the information that you have provided, could you clarify what specific information you refer to when you state “how to calculate the transport cost”, and we shall endeavour to provide a response.

Sorry, it is for the purposes of calculating a customs value for our goods. To add on the cost of the transport, but only up to the EU frontier. We own the lorries and the goods from the sellers warehouse (FCA) through customs and into our premises for sale.

Thank you for your post.

Customs valuation is based on WTO rules and therefore will not change from 1st January 2021. These rules are reflected in our public notice 252 – valuation of imported goods. Transport costs are covered in section 17.

There is no standard calculation method for calculation of the transport costs described. The above notice sets out current rules based on transport costs up to the EU border but the principles remain the same.
For goods transported by rail or road the freight charge is to be apportioned using reasonable means for example by distance covered outside and inside the EU.

Any response to a question is intended to provide only general information about the topic raised and is based on the relevant legislation and wider framework as applicable at the date the response was published. The responses provided on this forum do not amount to legal advice and those asking questions should consult their own lawyers for legal advice as appropriate.

I was under the impression Notice 252 would be updated to cover rules for European roadfreight? We could really do with % apportionment tables like we see with airfreight, to avoid uncertainty here. Or the introduction of binding valuation rulings. Otherwise how will a business know if HMRC would deem their apportionment reasonable or not?

Thank you for your post.

Notice 252 was updated on 31/12/20 and continues to provide advice on the treatment of transport costs. A percentage table for apportionment of road freight costs is not being published. Guidance on transport costs is included in section 15 here. 
HMRC have no immediate plans to introduce a system of binding valuation rulings.

Any response to a question is intended to provide only general information about the topic raised and is based on the relevant legislation and wider framework as applicable at the date the response was published. The responses provided on this forum do not amount to legal advice and those asking questions should consult their own lawyers for legal advice as appropriate.