What is CIF customs value?

CIF customs value is goods value plus international freight plus insurance, calculated to the importing country's border. Most WTO member countries use this as the dutiable base for import duty calculation.

Does the US use CIF customs value?

No. The US uses FOB (Free on Board) customs valuation, which excludes freight and insurance from the dutiable value. This makes US duty calculations different from EU and most other countries.

What Incoterms affect customs value?

Incoterms determine who pays freight and insurance, but not how customs values the goods. For CIF-basis countries, freight and insurance are added regardless of which party paid them on the invoice.

What are other dutiable charges?

Other additions may include royalties, commissions, assists (materials supplied free by buyer to seller), and proceeds of resale. Less common but relevant for related-party transactions.

Can customs reject my declared value?

Yes. Customs authorities can challenge values that appear below market value, particularly for related-party transactions or repeat imports of the same commodity. Always declare accurate values.

Should I use the Customs Value Calculator before the Import Duty Calculator?

Yes. Use the Customs Value Calculator to compute CIF value first, then enter that value into the Import Duty Calculator to apply your HS code duty rate.

Customs Value Calculator

Enter goods value, international freight, insurance and other dutiable charges to calculate estimated CIF customs value — the base on which import duty is assessed in most countries. Customs valuation rules vary by country and Incoterms.

Calculate estimated customs value (CIF basis) by adding goods value, international freight, insurance and other dutiable charges. Used to determine the base on which import duty is assessed. Customs valuation rules vary by country.

CIF customs valueDuty baseImport planningTrade compliance

Goods / Invoice Value

Commercial invoice value of the goods

International Freight Cost

Cost of carriage to the importing country border

Insurance Cost

Marine / cargo insurance premium

Other Dutiable Charges

Any other additions required by your customs authority

Formula

Customs Value (CIF) = Goods Value + Freight + Insurance + Other Dutiable Charges

The CIF customs value basis adds the cost of international carriage (freight) and insurance to the goods invoice value. This is the standard basis used by most WTO member countries. Import duty is then calculated as a percentage of this CIF customs value. Note: the US and some other countries use FOB value (excludes freight and insurance from the dutiable base).

Worked Example

Garment shipment from China to EU: Invoice USD 8,000 · Sea freight USD 1,200 · Insurance USD 80:

CIF customs value = USD 8,000 + USD 1,200 + USD 80 = USD 9,280

At 12% EU duty rate: USD 9,280 × 12% = USD 1,113.60 duty

EU VAT base = USD 9,280 + USD 1,113.60 = USD 10,393.60

The CIF customs value of USD 9,280 is higher than the goods invoice of USD 8,000 — meaning duty is calculated on a higher base than the purchase price alone. This is a common planning mistake when budgeting import costs.

FAQ

Frequently Asked Questions

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.

Use this in your workflow

Calculate CIF customs value here, then apply your duty rate in the Import Duty Calculator, and add VAT/GST with the Duties and Taxes Estimate Calculator. Use freight cost from the Freight Cost per KG Calculator. Browse all Online Business Calculators.

When to use this calculator

→Calculating the duty base when freight and insurance are not on the commercial invoice (EXW or FOB terms)
→Understanding why customs duty applies on more than just the purchase price
→Comparing CIF customs value across different sourcing options or freight modes
→Briefing a customs broker on expected CIF value before clearance

Related calculators

Import Duty CalculatorApply duty rate to customs value to estimate import duty Duties and Taxes Estimate CalculatorAdd VAT/GST on top of customs value and duty Freight Insurance CalculatorEstimate cargo insurance premium for the shipment value Landed Cost per Unit CalculatorFull landed cost breakdown including customs value and duties