Customs Value Calculator

CIF stands for Cost, Insurance and Freight. CIF customs value is the total of the goods purchase price, international freight charges to the importing country's border, and cargo insurance costs. Most WTO member countries require this CIF value as the basis for calculating import duty. It is defined under the WTO Agreement on Customs Valuation, Article 8.

No. The United States uses FOB (Free on Board) customs valuation, which excludes international freight and insurance from the dutiable value. This means US customs value equals the goods value at the port of export only. This is an important difference to consider when budgeting for US imports vs EU or most other country imports.

Incoterms define who pays for freight and insurance — but customs authorities value goods independently of Incoterms. On a FOB or EXW sale, the buyer pays freight and insurance, but for CIF customs value countries those costs are still added to the customs value. On a CIF or DDP sale, the freight and insurance are included in the invoice price. Customs value adjustments may be needed depending on what is included or excluded in the invoice price.

Customs authorities may require additional amounts to be added to the transaction value, including: commissions and brokerage (other than buying commissions), royalties and licence fees related to the goods, proceeds from resale accruing to the seller, and assists (materials/tools supplied free of charge by the buyer to the seller). These additions are less common but relevant for related-party transactions and licence agreements.

If your commercial invoice is on EXW or FOB terms, the freight and insurance costs will not be on the invoice. You will need to add them separately to arrive at the CIF customs value for countries using CIF basis. Your freight forwarder can provide the freight cost; insurance cost is from your policy or can be estimated.

Yes. Customs authorities can challenge declared values if they appear below market value for similar goods, particularly for related-party transactions or repeated imports. They may use alternative valuation methods (identical goods value, deductive value, computed value). Always declare accurately — undervaluation is a customs offence.