CPC 5000 - Calculating the surcharge

When goods are discharged from CPC 5000 by diversion to home use, a surcharge will be payable in addition to the import duty due.

The surcharge is calculated by multiplying the amount of deemed units for duty (i.e. BCD Field 27c - Value for Tax) by the relevant duty rate.

The deemed units for duty amount is 10% per annum of the units for duty.

The units for duty amount will either be the customs value of the goods where an ad valorem rate applies or the total units for duty in the case of goods with a specific duty rate (i.e. kilogrammes, litres, etc.).
 

Illustration of calculation of surcharge – ad valorem duty rate

A consignment of apparel is imported for the purpose of retail sale.  The customs value of the consignment is $10,000.  The goods are discharged to home use after 100 days.

Surcharge   =      Deemed units for duty (Units for Duty x 10% per annum) x Duty Rate

(10% of customs value) x (days of deferment/365) x Duty Rate

[(0.1 x 10,000) x (100/365)] x 0.065

 (1,000 x 0.273972) x 0.065

= $17.81

OR

Illustration of calculation of surcharge – specific duty rate

A consignment of wine is imported for the purpose of retail sale.  The number of litres of wine in the consignment is 500.  The goods are discharged to home use after 100 days.

Surcharge   =      (10% of customs value) x (days of deferment/365) x Duty Rate

[(0.1 x 500) x (100/365)] x 6

 (50 x 0.273972) x 6

$82.20

OR