This article explains how customs authorities calculate import duties, and which calculation method applies in different countries.
Calculation methods
- Ad valorem based on CIF (Cost, Insurance, and Freight): Duties are calculated on the order value plus the cost of freight, insurance, and the seller's commission. This is the most widely used method globally.
- Ad valorem based on FOB (Free on Board): Duties are calculated on the cost of goods only, excluding shipping, insurance, and other fees.
- Weight: Duties are calculated based on the gross weight of the goods.
- No duties assessed (free port): Some countries do not impose any import duties, making all imports duty-free.
Calculation method by country
Most countries default to the CIF method. The tables below list countries that use a different approach.
Duties based on FOB
Country code | Country |
AS | American Samoa |
AU | Australia |
BW | Botswana |
CA | Canada |
GU | Guam |
HT | Haiti |
LS | Lesotho |
NA | Namibia |
NZ | New Zealand |
SZ | Swaziland |
US | United States |
VI | Virgin Islands |
ZA | South Africa |
Duties based on weight
Country code | Country |
CH | Switzerland |
LI | Liechtenstein |
No duties
Country code | Country |
HK | Hong Kong |
KI | Kiribati |
MO | Macao |
SG | Singapore |
Duties based on CIF
Any country not listed above typically uses the CIF calculation method.