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.