For sea freight, HMRC values goods at the UK port where they arrive. Costs up to that point go into customs value. These include freight, insurance, loading and handling, container and terminal charges abroad, inland transport in China, and surcharges such as bunker or peak season charges.
Some costs can be left out if they are shown separately and can be evidenced. These include UK transport after the port, insurance for the UK leg and UK terminal charges. Demurrage caused by delay after arrival is excluded, but delay before arrival is included.
Import VAT is worked out on a wider figure. It adds the duty and the incidental costs to the first UK destination, such as UK transport, handling and clearance charges.
Sources
- GOV.UK: Delivery costs to include in the customs value (opens in a new tab)
- GOV.UK: Working out the VAT value using the customs value of the imported goods (opens in a new tab)
A summary of the public sources above, checked when it was published. General information, not legal, tax or financial advice.