Trade & shipping · Customs valuation
FOB vs CIF customs value calculator.
Start from your invoice value, add freight and insurance, and see FOB, CFR and CIF side by side. Pick a destination to see the value its customs authority duties, and the duty difference between the two bases.
FOB is the goods price. CFR adds freight. CIF adds freight and insurance. The US, Canada and Australia duty the value without international freight and insurance (FOB basis). The UK and EU include transport and insurance up to the point of entry (CIF basis).
Your invoice
Your estimate
Customs value basis by destination
- United States: transaction value excludes international freight and insurance when their actual cost is documented. Estimates are not accepted for the deduction.
- Canada: transport from the place of direct shipment to Canada is not included in the value for duty; transport to the place of direct shipment is added.
- Australia: the customs value is the price less international freight and insurance. Freight, insurance and duty are added later only to work out GST on the importation.
- United Kingdom: transport and insurance up to the point of entry into the UK are part of the customs value.
- European Union: all transport costs until the goods enter the EU are included in the customs value.
- Insurance as a rate: the premium is the rate times the insured percentage times the CIF value, so CIF = CFR ÷ (1 − rate × insured%).
- Commissions, royalties, assists and other adjustments can also change a customs value and are not modelled.
Official sources, read October 2026: CBP, What Every Member of the Trade Community Should Know About: Customs Value, CBSA, memorandum D13-3-3 transportation and associated costs, ATO, GST and imported goods, GOV.UK, delivery costs to include in the customs value and European Commission, customs valuation guidance.
Frequently asked questions
What is the difference between FOB and CIF value?
FOB is the price of the goods loaded at the port of origin. CIF adds the sea or air freight and the insurance to the destination port.
Does the US use FOB or CIF for duty?
The US duties the transaction value, which excludes international freight and insurance when their actual costs are documented. That is an FOB-style value.
Why does the UK customs value include freight?
GOV.UK says transport and insurance costs up to the point of entry into the UK are included in the customs value, so the UK works on a CIF basis.
Why does insurance use 110%?
Cargo insurance is commonly written on the CIF value plus 10%, and the Incoterms CIF and CIP rules refer to cover based on the contract price plus 10%. Change the percentage if your policy differs.
Estimate only
This page is a planning guide, not customs, tax or legal advice. Rules, thresholds and fees change; confirm with the official source linked above, a customs broker or an accountant. It does not look up or verify anything in a government register, and calculations run in your browser; nothing is sent anywhere.