What is Customs Value (CV)?

The Customs Value (CV) is the price used by customs authorities to calculate import duties and taxes. It represents the value of goods at the point they enter the importing country and ensures duties are applied fairly and consistently. CV is not always the same as the invoice price - adjustments may be made depending on shipping, insurance, or other costs.

FOB vs CIF explained

Different countries use different methods to calculate CV. The two most common are:

• FOB (Free on Board): The cost of the goods alone.
• CIF (Cost, Insurance & Freight): The cost of goods, freight (shipping), and insurance.

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Most countries use CIF for customs valuation. However, some, like the United States, use FOB. Some countries also use different methods to calculate different duties and taxes. For example, in Australia import duty is based on the FOB value, but GST is based on the CIF value + duties.

Examples

• FOB: Goods €10,000 + Shipping €800 + Insurance €200 → CV = €10,000
• CIF: Goods $10,000 + Shipping €800 + Insurance €200 → CV = $11,000