Duties
Customs value: what US import duty is charged on
Independent site, not a government agency or a customs broker. General information, not legal advice or customs advice.
Take freight and insurance out of a CIF price: the figure duty is charged on, and what to do with it.
Customs value from a CIF price
Value duty is charged on
$22,650
| Taken out | $2,350 |
| At an 8% duty, the difference | $188 |
International freight and insurance leave the value only when they are identified separately.
US duty is charged on the transaction value of imported goods: the price actually paid or payable when they are sold for export to the United States, plus certain additions. 19 CFR 152.102 defines that price as the total payment, excluding charges for transportation, insurance and related services incident to the international shipment. This differs from countries that charge duty on a CIF value. An example in 19 CFR 152.103 states that “the transaction value excludes C.I.F. charges”. To use that, charges must be identified. A CIF price with no breakdown leaves you with little to deduct, so ask your supplier for itemized freight and insurance. Foreign inland freight has its own rule: if it is in the price, it may stay, unless it is identified and part of the through shipment after the sale for export. Additions are spelled out in the rule, too. Read on November 2, 2026.
Now apply the duties
Landed cost
$29,325
6109.10.00: duties $6,569, 29% of value, $29 per unit before rounding
| Ordinary duty (16.5%) Column 1 General | $3,737 |
| Section 301, 60 economies (12.5%) Heading 9903.05.84 | $2,831 |
| Merchandise processing fee 0.3464% of value, min $34.58, max $670.86 | $78 |
| Harbor maintenance fee 0.125% of value, ocean cargo at covered ports | $28 |
Rates of 2026 HTS Revision 22, read on 2026-11-02. Antidumping and countervailing duties, state taxes and USTR exclusions are not included. Estimate, not a customs ruling. Everything you enter stays in this browser: nothing is sent or stored.
Rates read by Radif Partners · Editorial policy · Method and sources
What stays out and what goes in
| Item | In customs value? |
|---|---|
| Goods price paid to the seller | Yes |
| International freight and insurance, identified | No |
| Packing paid by the buyer | Yes, added |
| Selling commission paid by the buyer | Yes, added |
| Assists: molds, tooling, materials you supply | Yes, added |
| Royalties that are a condition of sale | Yes, added |
| Foreign inland freight, identified, after sale for export | Can stay out, under conditions |
| US duties and post-import charges, identified | No |
Why freight is worth breaking out
Suppose you have a CIF price of $25,000, with $2,200 of freight and $150 of insurance. Duty on the $22,650 that remains is lower than on the full price, as shown in the first tool. At a total duty of 30 percent, the difference is $705, without changing a thing except the paperwork. So ask for itemized invoices, and make sure they match what was really paid.
How trade terms affect this
The example in 19 CFR 152.103 is about C.I.F. charges. Whatever trade term your contract uses, the test in the rule is what the price paid covers and whether transport and insurance are identified. Incoterms covers those names.
Related parties
If buyer and seller are related, 19 CFR 152.103 has its own tests for whether the relationship influenced the price. We give no advice on them here.