CIF (valuation basis)
Also called: cost, insurance and freight · CIF value
As a valuation basis, CIF means the price of the goods plus the cost of insurance and transport up to the place where goods enter the customs territory. The EU, Türkiye and the UK calculate customs value on this kind of basis, whatever delivery term the parties actually agreed. CIF is also the name of an Incoterms rule, which is a separate, contractual concept.
In practice
If you buy on an ex-works or FOB basis, you must add the freight and insurance to the border yourself before calculating EU, Turkish or UK duty.
EU
Türkiye
UKRelated terms
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…
- FOB (valuation basis)
- As a valuation basis, FOB means the value of goods loaded on board at the port of export, without international freight and insurance. The United…
- Incoterms
- A set of standard three-letter trade terms published by the International Chamber of Commerce that allocate delivery point, risk, costs and customs…
- Landed cost
- The full cost of a product delivered to the buyer's premises, including purchase price, freight, insurance, customs duty, additional duties, import…