Purpose
This is the customs and monetary value tab for the receipt of goods, where you provide details of the customs, excise statuses along with the values of the goods for calculation of duties.
Warnings
This form is very important when you are operating a customer or excise warehouse, the information shown here has to be 100% accurate, otherwise, it will affect payments of duties, the value of those payments, and paperwork produced for the goods.
Each line is highlighted, once you complete a line it becomes prepared, so you will always have the top line highlighted and be working on that line, you can choose another line but be careful as this is out of the normal sync.
Similarly to within Receipting Details on the tab before, Bond Details is comprised of 3 tabs split up by 3 radio buttons. These are exactly the same as the tab before with Pending, Prepared and Receipted statuses.
Once you have input data you will move from Pending to Prepared and then onto Receipted although once you are used to the system and know all the mandatory data fields you may well use the Final Receipt All button to skip the second screen entirely as a time saver.
You can only Receipt a line within Bond Details if you have already Receipted it in Receipting details (the previous tab within a pre-advice). This is to be sure all the necessary details are there before anything is sent off.
Line Entry Form
When you select a line on the top section of the page the corresponding details appear in the lower section, this area explains those fields section by section.
Line Details section
CWC
This refers to an old term “Country Whence Consigned” meaning the country where the goods came from when they arrived in your warehouse.
Whilst the product COO / CWC are generally the same this is usually set to the suppliers country when new goods are arriving.
However it can be set and retrieved from the CWC field given in the Bond Details section of the Receipting Header tab. You can’t also edit CWC from the Bond Details tab.
Free Circulation (FC - Customs Paid)
This is an old term and refers to whether customs duty is paid for this stock item.
Are the goods in FREE CIRCULATION or are the goods CUSTOMS DUTY PAID.
Goods were referred to as “in free circulation” when customs duty was paid, which allows them to freely move around the EU, but this would apply to any customs union whether the EU or a single country.
These days if it were to apply it would apply to goods in GB.
If you are not customs approved then this flag must always be set to YES.
Excise Duty Paid In UK?
This flag determines whether goods are excise paid or not, it is also known as the DP flag, if this is ticked then the goods are fully excise paid. The term duty paid refers to the UK excise system which is different to the Worldwide customs system.
Duty Stamped?
This only becomes active when stocks are identified as needing duty stamps.
In this case, you need to positively confirm whether the answer is YES or NO (this will not default).
VAT Section
Owner Changed In UK?
This is a marker relating to sales tax (VAT).
The question is “Has the Owner changed in the UK?” If they have then this needs to be set to YES if not then it would be set to NO.
To determine whether the owner has changed, the first owner or imported EORI is considered, this is basically the sales tax (VAT) number.
It is very relevant as only the first owner of goods at the point of import is allowed to use PVA VAT. If the owner of the goods has changed this is not allowed.
If you are the original importer of the goods then you are accountable only to record from sale tax for the import, however, if you have purchased the goods from another supplier within the warehouse country then you are not the original importer, and ownership of the goods has changed.
Nil VAT Allowed
We will determine whether this can be set by the supplier being the same as the customer receiving the stock, however, there are occasions when you need to set this manually. In general, if you manufacture your own goods and you purchase or grow the raw materials then this would be a NIL VAT item, so you would not pay sales tax with the duties for the purchase of the goods.
Allow PVA?
This is the flag to represent whether the incoming stocks will be using Postponed VAT Accounting which was the replacement for Acquisition VAT when we left the EU.
Customers importing will have to determine whether they will be using PVA for imports and the paperwork you receive with the goods will tell you whether they opted for PVA or whether they are not using PVA.
Based on this information you need to select the Allow PVA field correctly.
Please ensure you set this correctly as failure to do so can result in civil penalties by HMRC to both the warehouse and the stock holding customer.
VAT Status for this Line - Postponed VAT Accounting can only show if ‘Allow PVA’ is ‘Yes’, otherwise it must fall back to the existing standard / deferred option.
The other fields on the form are required by HMRC for entry.
Costs / Trade Terms
You have a number of options available, these are also known as the INCOTERMS and it is how your customer is purchasing the goods.
In general customers purchase stock from either the supplier and the customer then arranges all the transport/shipping OR they purchase from the supplier who arranges the transport/shipment to the port in the receiving country.
If the supplier is not involved in anything other than the supply (and is not arranging the shipment) then this is considered as EXW (Ex-Works) and you would be expected to enter the Product + Insurance + Freight costs
The VAT calculation is based on the Product + Freight + Insurance + Vat Value Adjustment when calculating the amount of VAT payable or VAT on the return to the revenue department. Is is vital you record this accurately and correctly.
Description | Valuation Method | |
|---|---|---|
A | EXW - Pre CIF/DAT invoice price/value Also knowns as FOB This is where the buyer is taking responsibility of all costs from the port of exit from the suppliers country including insurance and shipping costs. Therefore all three prices are needed. | P+I+F with Vat Val Adj optional  |
B | CIF/DAT invoice price/value or SPV This is where the supplier is transporting the goods to the arrival country and they are including the insurance and shipping with the purchase price, as such only the product price is needed. | P with Vat Val Adj optional  |
C | Post CIF/DAT invoice price/value | |
D | CIF/DAT duty inclusive invoice price/value | |
E | Post CIF/DAT duty inclusive invoice price/ value | |
F | Pre CIF/DAT selling price | |
G | CIF/DAT selling price | |
H | Post CIF/DAT selling price/unit price | |
I | CIF/DAT duty inclusive selling price/unit price | |
J | Post CIF/DAT duty inclusive selling price/ unit price | |
K | CFR/CPT invoice price value | |
L | CFR/CPT duty inclusive price |
If you are not provided the insurance costs always enter at least 0.01 as this field can not be 0.00
VAT Value Adjustment
This is the amount per case you paid in customs duty at the port of entry. As VAT is not charged at the port due to the goods moving to an excise warehouse then the amount has to be accounted for within the Value for VAT calculation for the excise declarations.
Freeze and Retrieve Later
You can use this option where the customer is unable to provide you with stock values at the point of receipt and instead of landing the stocks with a nominal value hoping to remember to add them later this option allows the stock to be landed and it will be immedaitely Frozen with the reason “VALUES”
The stock is then landed on the system in the warehouse, accounted for, invoiced for receipt but unusable until the values are added.
More information on how to free this stock can be found here Post Receipt
Excise Tab Options
The excise tab is used to set the details of the excise goods you have receipted, if you are using the 777 or higher codes then this section still needs completing but the details would not be applicable.
Tax Code - based on the product type the tax code shown here will be applicable for the product type. The product default will normally pull through from the product record however you can change it should it be required, this is generally only done if the wine is outside the strength or size ranges available for the tax code.
Degree Plato - applicable for beer and used for exports to several countries who use this as the indicator for the level of duty.
Tax Certificates - If this product has a tax certificate it will show in the window, this is applied at the product level and applies to small producer certificates.
EMCS ARC - If you only have a single ARC then this will display in the field, if you have more than one for this receipt then you will have to choose which ARC applies to this specific line.
Customs Tab Options
This allows you to set the commodity code for the product, based on this some import documents may be required, if this is the case use the Import Documents option on the form to visit the document requirements.
This area becomes required and mandatory if the goods are received NOT in Free Circulation (meaning customs duty has not been paid)
Valuation Method Type
You will be provided with a drop-down menu from which you can select the customs valuation method for your goods for Government taxation purposes.
Out of 6 methods, you can select one, and the following link will help you determine the right method.
Import Documents
The ability of goods in to store the many different import documents and certificates required for various commodities. This will introduce the ability to start storing import document information (for use later with CDS in Bond) for other commodities such as those that are non-wine/spirits/beer, and based on duty per KG instead.
You must save the Pre-advice before clicking on this button.
The Import Documents will show what is set up against the Commodity Code that you are using for the product
All fields apart from ID and NA (if setup) are read-only
When entering an ID that does not exist in the system, the “Add Import Document” screen will populate
Quota/Preference
The Quota/Preference field (seen in the image to the left) must be filled in at time of receipt. This value can be changed using stock maintenance but only if there was a value at time of receipt, if left blank then any stocks were this was set incorrectly would have to be re-landed into the system. For more information on re-landing stock, see our official guide here: Relanding Stock
