Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Import and National Clearance Hub Procedures

HM Revenue & Customs
, see all updates

General notes: C018: check variable charge (VC) calculated by trader

To check calculations:

  • Check Box 38, net weight - check this tallies with the invoice or packing list.
  • Go into DTMS in CHIEF and fill in the fields.
  • Measure: Group = CA, Type = VCH, Tax type = 331.
  • EU supplementary Measure: Set = ECSU.
  • Code = 4 digit additional code found after commodity code (Box 33).

Then press Enter twice.

The rates for different countries of origin will be displayed, these are in Euros (usually) per 100kgs. Check the country of origin in Box 34a. Note the rate down.

If you cannot see the country of origin listed it may be included in the countries groups.

Downward select on the countries group, press Enter, the screen will list the countries included in that group. If your country of origin appears apply the rate shown for the group. Note that the first (top) line is the rate of Variable Charge (VC) for all third countries not specifically mentioned in the other lines and is therefore the full rate of VC.

If the entry is within the current month you can check the Euro rate of exchange for the agricultural sector by downward selecting on the first set of [] brackets after the rate. (Note the exchange rate down)*

Check the unit of quantity by downward selecting on the second set of [] brackets (most will be 024 which is per 100kgs). Note the unit of quantity down.

*If the entry is not in the current month go into DTBE.

Enter EXCH in the first field, M00 in the second and the entry date in the third (the time is not required). Note down the exchange rate.

Divide the rate (for the country) by the Euro exchange rate - note the figure down (figure a).

If the unit of quantity is per 100kgs divide Box 38 by 100 - note the figure down (figure b). (If the unit of quantity is per kg there will be no need to divide by 100 and figure b will be what has been entered in Box 38. If the quantity is per 1000kgs (tonne) you will need to divide Box 38 by 1000 to obtain figure b.

Multiply figure a by figure b - this should equal the figure the agent has entered in Box 47d.

Note that there are two other CAP charges which look very similar to variable charge, namely Additional Duty on Sugar and Additional Duty on Flour. If in doubt, ask the CAP team.