Working out landed costs when importing a container of mixed products

[samuel5]

How do customs work out the freight costs for a product when working out the duty owed?
Do they go by the CBM volume or weight please?

When we work it out we use the CBM and it normally matches the duty calculated from HMRC but lately our shipments have been out.

I notice on the customs entry forms it only states gross and net weights, but I would assume CBM should have been used.

Thanks

Sam

 

[Paul Kelly ICHYB]

Do they go by the CBM volume or weight please?

Been a long time for me, but I am sure they go by the fright cost!

More qualifies people will undoubtedly come and shame me!

 

[Import Expert]

They would use the actual freight cost invoiced, rather than going by the weight/cube.

 

[IMEX Sourcing Services]

Hi,

This post my help: https://www.thesourcingblog.com/import-from-china-to-uk/ - It gives you a rundown of the process.

But in short the volume would only impact your "freight costs", duties and taxes are based on the value of the goods, and the HS Code under which you file.

 

[Customs Geek]

How do customs work out the freight costs for a product when working out the duty owed?
Do they go by the CBM volume or weight please?

When we work it out we use the CBM and it normally matches the duty calculated from HMRC but lately our shipments have been out.

I notice on the customs entry forms it only states gross and net weights, but I would assume CBM should have been used.

Thanks

Sam

I'm a bit late to the conversation but this is what it says in official guidelines for CDS declarations.

‘For multi-item declarations CDS divides any freight charges between the items in proportion to their value or gross mass according to the declarant’s choice’

CBM isn’t an option as it is not declared on the customs entry.

So if you are seeing something different to previously the I suspect your agent has chosen a different method of apportionment.

 

[YANKAI]

海关在计算应纳税额时如何计算出产品的运费？
请问他们是按体积还是重量计价？

当我们计算时，我们使用CBM，它通常与从HMRC计算的关税相匹配，但是最近我们的货物已经出了。

我注意到报关单上只注明了毛重和净重，但我认为应该使用的是立方米。

谢谢

萨姆（男子名）

How do customs work out the freight costs for a product when working out the duty owed?
Do they go by the CBM volume or weight please?

When we work it out we use the CBM and it normally matches the duty calculated from HMRC but lately our shipments have been out.

I notice on the customs entry forms it only states gross and net weights, but I would assume CBM should have been used.

Thanks

Sam

The problem you said is easy to solve. Find a freight forwarder to give them the data, they will give you a quotation form, and if they need to pay for how much they need, they can find them if they can get it.
If you have a Chinese business problem, you can contact me. I am a cargo company in China

 

[samuel5]

Sorry for the delay in replying!

What I mean is, say we import a 20' container with 2 items.

Item 1 is 2000KG but only takes up 1 cbm
Item 2 is only 1000KG but takes up 27 cbm
(Total weight is 3000KG, Total cbm is 28cbm)

The freight charges for the container are £1000.

We work our freight costs for each item from this as follows:

Item 1 is 3.57% of the £1000 paid (1/28x100) so freight cost is £71.40
Item 2 is 96.43% of the £1000 paid (27/28x100) so freight cost is £964.30

But customs use the Net Weight, which is irrelevant for goods shipped by sea in a container, then we have the following freight costs:

Item 1 is 66.66% of the £1000 paid, = £666.60
Item 2 is 33.33% of the £1000 paid, = £333.30


Hope someone can advise as its confusing me why they use Net Weight! Thanks

 

[Customs Geek]

Where freight costs are added to the goods value it is declared as a total amount of freight which is then apportioned by weight or value. It is the importers choice which gives the best results.
I know it’s not an ideal answer but it has always been the case ( since the 1980’s at least to my knowledge )
Customs do not ordinarily require reporting of the volume nor is there any way of declaring such an apportionment on the declaration.