Guidance: Converting foreign currency amounts to include in the customs value

How to include a foreign currency amount in the customs value

You must convert the following into pounds sterling:

• any foreign currency amounts on an invoice
• any other part shown in any foreign currency, for example, freight or insurance

Which rates of exchange to use

You would normally use the rates of exchange specified in your contract to convert the foreign currency amount into pounds sterling.

If the contract does not specify a rate of exchange, you can use either:

• the fixed rate of exchange
• the rates of exchange published by HMRC

Fixed rate of exchange

You should use the fixed rate when:

• the contract of sale specifies that a fixed rate of exchange must be used to convert a foreign currency amount into pounds sterling
• the seller will receive the payment in pounds sterling

If the invoices are in pounds sterling at a fixed rate of exchange quoted in the contract of sale, that fixed rate of exchange must be used to convert the pounds sterling amount into the foreign currency.

To work out the customs value, you must then convert the foreign currency amount back into pounds sterling using the exchange rates published by HMRC at the time that you import the goods.

Exchange rates published by HMRC

If you cannot use the fixed rate of exchange in accordance with the conditions specified, you must use the exchange rates published by us when the entry to free circulation is accepted.

HMRC bases these exchange rates on the provisions set out in UK legislation.

The monthly rates are fixed under provisions set out in UK legislation.

You can find the rates of exchange in the exchange rates from HMRC in CSV and XML format.

We publish these rates at the end of every month and cover the period from the first to the last day of the next calendar month.

You can use them to convert foreign currencies for duty and import VAT purposes.

Once a week, we’ll check each of the rates we published against the commercial selling rates.

If the commercial rate differs by more than 5% from our last published customs rate, we’ll update that particular customs rate the following week.

You can ask us to accept a single exchange rate based on the first day of the period through to the end of that month.