What is customs value?

Customs value is the amount a customs authority assesses import duty against. It starts from the transaction value of the goods and, depending on the valuation basis the destination country uses, adds the international freight and/or insurance, plus certain dutiable additions such as assists, royalties, and packing.

What is the difference between FOB and CIF for customs?

On an FOB (Free On Board) basis, duty is assessed on the goods value only — freight and insurance to the destination are not dutiable. On a CIF (Cost, Insurance, Freight) basis, the customs value includes the goods plus international freight plus cargo insurance. CFR (Cost & Freight) sits between the two: goods plus freight, no insurance.

Does the United States use FOB or CIF?

The United States assesses duty on an FOB basis, so international freight and insurance are excluded from the customs value. Most other countries assess on a CIF basis and include freight and insurance.

Customs Value Calculator

Find the value your customs authority actually assesses duty against — the figure every import-cost number builds on. Pick the valuation basis your destination uses (FOB, CFR, or CIF), enter the goods, freight, and insurance, and get the dutiable customs value with the breakdown.

Valuation basis (how the destination assesses duty)

Goods value ($, transaction value)

International freight ($)

Cargo insurance ($)

Dutiable additions are included regardless of basis under WTO transaction-value rules.

Assists & tooling ($)

Royalties & license fees ($)

Packing & selling commissions ($)

Customs value

on CIF basis

Goods value —

Freight + insurance in value —

Dutiable additions —

What customs value is

Customs value is the number a customs authority multiplies your tariff rate against to work out the duty you owe. Get it wrong and every downstream figure — duty, taxes, landed cost — is wrong too. It starts from the transaction value of the goods (the price actually paid) and then depends on the valuation basis your destination country uses.

Customs value = goods + (freight and/or insurance, per the basis) + dutiable additions

FOB, CFR, and CIF

The basis decides how much of the shipping cost is dutiable. FOB (Free On Board) assesses the goods only — freight and insurance to the destination are excluded; this is how the United States values imports. CFR (Cost & Freight) adds the international freight but not insurance. CIF (Cost, Insurance, Freight) adds both, and is how most of the world assesses duty.

Dutiable additions

Under WTO transaction-value rules, some costs are dutiable no matter the basis: assists (tooling, molds, or materials you supplied to the maker), royalties and license fees tied to the goods, and packing and selling commissions. Switch on “With additions” to fold these into the customs value.

This tool is a planning estimate. Your customs broker or the destination authority has the final say on valuation and classification.