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HMRC internal manual

CAP imports

From
HM Revenue & Customs
Updated
, see all updates

Control procedures on importations of sugar at reduced rates of duty: general

Details of duty rates under quotas and preferential arrangements can be found on the TARIC website. The TARIC also shows the representative price which is relevant for the calculation of any safeguard charges and/or security that might be payable. Additionally representative prices and the reference prices are shown on eight CHIEF Noticeboards numbered 040171 -78, one for each commodity code.

Safeguard charges are made to deter cheap imports of sugar from entering the EC. To ensure that the declared value has not been overstated in order to reduce safeguard charges payable, various documents need to be produced. These are the:

  • purchasing contract
  • insurance contract
  • invoice
  • certificate of origin (where applicable)
  • transport contract
  • bill of lading (when transported by sea), and
  • evidence of the selling-on price in the EU.

It is likely that the evidence of the selling-on price will be not be known at the time of entry into free circulation, and in these cases it will be necessary for a security to be paid. If the purchase price of the goods (in Euros per 100 kgs) is higher than the reference price, then a security equal to the amount of safeguard charge that would have been payable at the representative price value needs to be collected. At the bottom of each CHIEF Noticeboard, to the right of the representative price, is a figure showing the amount of security to take for each 100 kgs of sugar.

If the purchase price of the sugar in Euros per 100 kgs comes between the reference price and the representative price, both a safeguard charge and a security will need to be collected. The two added together will come to the figure on the CHIEF Noticeboard mentioned above, but the proportion of each charge will vary depending on the purchase price paid.