postal surcharges not pulling thorugh

We have a delivery rate table with surcharges for places like Channel Islands. This table is applied to our postage policy. However, our customers do not seem to see these surcharges are are being offered free shipping instead. In our postage policy, under servies, free p&p is ticked. Would this be overriding the surcharges? 

I didn't set up the postage so coming at this with zero history.

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