What is CIF value in customs?

CIF stands for Cost, Insurance, and Freight. It is the most common valuation basis used by customs authorities worldwide. CIF = Product Cost + Insurance + Freight Example: - Product value: $500 - Shipping: $80 - Insurance: $10 - CIF value = $590 Why it matters: Import duty is calculated as a percentage of the CIF value, not just the product price. Your shipping and insurance costs directly affect how much duty you pay. Contrast with FOB (Free on Board): The United States generally uses the FOB/transaction value — the product cost at the point of export, excluding shipping and insurance. This results in lower assessed duty than CIF-based calculation. Countries using CIF: Most countries — EU, UK, Australia, Canada, Brazil, India, China, Japan. Countries using FOB: United States (CBP uses transaction value, typically FOB). Practical tip: A cheaper shipping route might actually cost more in total duty if your destination uses CIF valuation, since higher declared freight increases your duty base.