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Annex C - FOB Value: Method 1

Example where CIF is more than 8% higher than SIV

Commodity Code: 070200 00 07 (Cherry tomatoes)
   
Country of origin: Any third country
CIF value: £6098.63
Weight: 15000 kg
Euro rate: 0.6255 (wef 01/10/2001)

Convert value into Euros per 100 kg using the following formula:

CIF Value ÷ Euro rate ÷ Net weight x 100 = Value in Euro per 100 kg

therefore 6098.63 ÷ 0.6255 ÷ 15000 x 100 = 65 Euros per 100 kg.

Compare to SIV. According to the published Official Journal the SIV rate = 58.8 Euros per 100 kg.

Is CIF value more than 8% higher than SIV?

SIV @ 58.8 + 8% = 63.5 Euros per 100 kg

CIF = 65 Euros per 100 kg

Yes, therefore security is required.

Look at the Additional Information at the end of Chapter 07 and find the entry prices for cherry tomatoes from 1 to 31 October with an entry price per 100kg net weight of:

Not less than €62.6 14.4% (CIF)
   
Not less than €61.3 but less than €62.6 14.4% + €1.1/100kg/net
Not less than €60.1 but less than €61.3 14.4% + €2.1/100kg/net
Not less than €58.8 but less than €60.1 14.4% + €3.2/100kg/net
Not less than €57.6 but less than €58.8 14.4% + €4.2/100kg/net
Less than €57.6 14.4% + 29.8/100kg/net

Convert SIV Euro rate into pounds sterling using the following formula:

SIV rate x Euro x Net weight ÷ 100 = SIV in pounds sterling

therefore 58.8 x 0.6255 x 15000 ÷ 100 = £5516.91

Amount payable outright:

CIF Value x 14.4%

therefore 6098.63 x 14.4% = £878.20

Amount payable on deposit:

SIV x 14.4% + 3.2 Euro/100kg/net

therefore £5516.91 x 14.4% + (3.2 x 0.6255 x 150) = £1094.68

Less the £878.20 paid outright:

therefore Security payable = £216.48

Total amount payable:

Outright £878.20
   
Plus security £216.48
  £1094.68

Example where CIF is up to 8% greater than SIV

Commodity Code: 070200 00 07 (Cherry tomatoes)
   
Country of origin: Any third country
CIF value: £5629.50
Weight: 15000 kg
Euro rate: 0.6255 (wef 01/10/2001)

Convert CIF value into Euros per 100 kg using the following formula:

CIF Value ÷ Euro rate ÷ Net weight x 100 = Value in Euros per 100 kg

therefore 5629.50 ÷ 0.6255 ÷ 15000 x 100 = 60 Euros per 100 kg

Compare to SIV. According to the published Official Journal the SIV rate = 58.8 Euros per 100 kg.

Is CIF value more than 8% higher than SIV?

SIV @ 58.8 + 8% = 63.5 Euros per 100 kg

CIF = 60 Euros per 100 kg

No, therefore security is not required.

Look at the Additional Information at the end of Chapter 07 and find the entry prices for cherry tomatoes from 1 to 31 October with an entry price per 100kg net weight of:

Not less than €62.6 14.4%
   
Not less than €61.3 but less than €62.6 14.4% + €1.1/100kg/net
Not less than €60.1 but less than €61.3 14.4% + €2.1/100kg/net
Not less than €58.8 but less than €60.1 14.4% + €3.2/100kg/net
Not less than €57.6 but less than €58.8 14.4% + €4.2/100kg/net
Less than €57.6 14.4% + €29.8/100kg/net

Total amount payable outright:

CIF Value x 14.4% + 3.2 Euro/100kg/net

therefore £5629.50 x 14.4% + (3.2 x 0.6255 x 150) = £1110.89

Example of SIV method

Commodity Code: 070200 00 07 (Cherry tomatoes)
   
Country of origin: Any third country
CIF value: £5629.50
Weight: 15000 kg
Euro rate: 0.6255 (wef. 01/10/2001)

According to the published Official Journal the SIV rate = 58.8 Euros per 100 kg.

Look at the Additional Information at the end of Chapter 07 and find the entry prices for cherry tomatoes from 1 to 31 October with an entry price per 100kg net weight of:

Not less than €62.6 14.4%
   
Not less than €61.3 but less than €62.6 14.4% + €1.1/100kg/net
Not less than €60.1 but less than €61.3 14.4% + €2.1/100kg/net
Not less than €58.8 but less than €60.1 14.4% + €3.2/100kg/net
Not less than €57.6 but less than €58.8 14.4% + €4.2/100kg/net
Less than €57.6 14.4% + €29.8/100kg/net

Convert SIV Euro rate into pounds sterling using the following formula:

SIV rate x Euro x Net weight ÷ 100 = SIV in pounds sterling

therefore 58.8 x 0.6255 x 15000 ÷ 100 = £5516.91

Total amount payable outright:

SIV x 14.4% + 3.2 Euro/100kg/net

therefore £5516.91 x 14.4% + (3.2 x 0.6255 x 150) = £1094.68