Freight and insurance in customs value

Which part of the journey matters

Border transport and insurance can affect customs value. Costs beyond the border need separate consideration, and import VAT value can include further costs. A single door-to-door quotation may therefore need a supported breakdown.

Separate commercial cost from customs value

Keep the commercial cost view and the valuation view connected but distinct. The full freight bill matters to profit even where only part belongs in customs value. A charge’s label alone does not establish its treatment.

Evidence to gather

• Carrier quotation and final invoice.
• Evidence of which part of the journey each charge covers.
• Details of insurance, surcharges and handling.
• A consistent allocation basis for mixed invoice lines.
• Confirmation of amounts already included in the supplier price.

Allocate the charges

First identify the amount to allocate. Then choose a supportable basis such as value, net weight or quantity. The allocation tool handles arithmetic; it does not decide whether the chosen basis is legally appropriate. Keep the source amount, basis and generated reconciliation with the instruction to your intermediary.

Worked allocation

Where double counting happens

• Adding freight again where the supplier price includes it.
• Deducting an unsupported estimate of UK transport.
• Combining freight and insurance without retaining their source amounts.
• Rounding every share independently and losing a penny.

Before the declaration

Check the actual border element, any permissible exclusions and the VAT-value treatment. ShipTally reconciles each charge in pennies using largest remainders. A reconciled allocation is evidence of arithmetic accuracy, not a ruling on the selected method.