Additions for freight and insurance costs: types of insurance policies
- general policy under which insurance costs are separately distinguished for each importation and
- global, blanket or block policy under which the premium is determined either:
* by applying an agreed percentage to the insured value or * set annually.
For costs incurred under (a) and the first bullet point at (b) the actual amounts can normally be determined at the time of importation. However, for costs under (b)(ii) apportionment to individual consignments will be necessary. A worked example is in Notice 252 Valuation of imported goods for customs purposes, VAT and trade statistics.
Proposals by importers to pay duty on the annual premium at the beginning or end of the year are to be rejected. Insurance is a charge connected with the shipment of the imported goods and, therefore, forms part of the overall transport costs due to be declared for customs purposes at the time of importation. Consequently it is necessary for annual insurance premiums to be apportioned on an entry by entry basis for declaration at the time of importation. Where premiums for the current year are not known, apportionment may be based on the previous year’s figures.