CAPI20150 - Annex C - FOB Value: Method 1
Example where CIF is more than 8% higher than SIV
Example where CIF is up to 8% greater than SIV
Example of SIV method
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
- Total : £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