Customs Value vs Declared Value: What is the Difference?

Not always. Customs value is the value customs uses to assess duty, governed by destination valuation rules. Invoice value is the price on the commercial invoice. Under a CIF basis, customs value adds international freight and insurance to the invoice price; under an FOB basis, it does not. The two can be equal in simple cases, but the right answer depends on the destination valuation basis.

Not always. Declared value is the value stated on the customs declaration or postal form. It is often close to the invoice price, but it can be adjusted before filing to reflect the destination valuation basis. Customs value is what the destination authority uses to assess duty, and that basis can add freight, insurance, assists, packaging, or commissions. Always separate the two when estimating duty.

Freight counts in customs value when the destination valuation basis is CIF or a manual basis that explicitly includes freight. Under a strict FOB basis, freight is excluded. Most ecommerce cross-border shipments use a CIF or destination-defined basis that includes freight, which is why the Import Duty Calculator takes freight and insurance as separate inputs and combines them per the chosen basis.

FOB (Free On Board) values the goods at the port of export. International freight and insurance are not added to the customs value under FOB. FOB is common in some destination rules and in many sales contracts, but it is not universal. Confirm whether the destination expects FOB, CIF, or a manual basis before entering values into the Import Duty Calculator.

CIF (Cost, Insurance, Freight) values the goods plus international freight and insurance. Assist value, packaging, and commission are not added unless destination rules explicitly include them. CIF is a common default for cross-border ecommerce shipments, but the exact treatment depends on the destination tariff. Confirm the basis with the destination customs authority before filing.

A manual declared value basis lets you combine product value, freight, insurance, assists, packaging, and commission into a single declared value. It is useful when the destination rules are unique, when the shipment includes assists that are not visible on the invoice, or when the seller wants full control over the customs value calculation. The Customs Value Calculator supports a manual basis as a third option alongside FOB and CIF.

US valuation generally uses a transaction-value approach close to the price paid, plus statutory additions. The US does not require a CIF basis by default, but additions such as packing, selling costs, assists, and certain royalties may apply. Use the destination’s published valuation guidance for the actual shipment; do not assume CIF or FOB by default.

Assists and commissions can be added to customs value under many destination rules. Assists are the value of materials, components, or services supplied free or at reduced cost by the buyer for use in producing the imported goods. Commissions and royalties related to the sale may also be added when the destination rules require. The Customs Value Calculator surfaces these as separate inputs so the manual basis captures them clearly.