Customs Duty Calculator
Estimate the customs duty payable on an imported shipment using the WTO standard CIF (Cost, Insurance, Freight) valuation method. Enter the value of goods, freight cost, insurance cost, and the ad valorem duty rate for the relevant HS tariff code. The calculator shows the CIF value, customs duty amount, and total landed cost. Duty rates vary by country and product; use the USITC Harmonized Tariff Schedule or your country's customs authority to find the correct rate.
Customs duty formula (WTO CIF method)
CIF value = cost of goods + freight + insurance
Customs duty = CIF value * (duty rate / 100)
VAT/GST = (CIF value + customs duty) * (VAT rate / 100)
Total landed cost = CIF value + customs duty + VAT/GST
This formula follows the WTO Customs Valuation Agreement (Article VII of GATT 1994), which requires most WTO member countries to use transaction value (CIF basis) as the primary basis for customs valuation. Always verify the specific HS tariff code duty rate with the relevant customs authority.
Understanding customs duty
- The Harmonized System (HS) is a 6-digit international standard code for classifying traded products, maintained by the World Customs Organization (WCO).
- Countries may add digits beyond the 6-digit HS code (8 or 10 digits) to apply more specific duty rates. The U.S. uses a 10-digit HTS code.
- Free Trade Agreements (FTAs) can reduce or eliminate duty rates for goods originating in partner countries. Check the USTR website for U.S. FTAs.
- Customs duty does not include broker fees, port handling charges, or delivery to your door, all of which add to landed cost.
- Always use a licensed customs broker for commercial imports; misclassification can result in penalties and seizure of goods.
Customs duty: frequently asked questions
How is customs duty calculated?
Customs duty is calculated as a percentage of the CIF (Cost, Insurance, and Freight) value of the imported goods. Duty = CIF value * ad valorem duty rate. CIF value = cost of goods + freight + insurance. This is the standard WTO method used in most countries.
What is CIF value and why is it used for customs?
CIF stands for Cost, Insurance, and Freight. It represents the total value of the goods including the cost to produce or purchase them, the freight cost to ship them to the destination port, and the cost of shipping insurance. Most countries use CIF as the customs valuation base because it reflects the transaction value at the point of import.
Where can I find the duty rate for my goods?
Duty rates are set by each country's customs authority. In the United States, rates are listed in the Harmonized Tariff Schedule (HTS) published by the U.S. International Trade Commission (USITC) at usitc.gov. The WTO's tariff database also provides bound duty rates by HS code for all WTO members.
Are customs duties the same as import taxes?
No. Customs duties are ad valorem or specific taxes on the imported goods themselves. Import taxes also include VAT or GST applied in the destination country, and some countries levy additional excise taxes. This calculator estimates customs duty only; VAT/GST on imports must be calculated separately using your destination country's rate.
What is the U.S. de minimis threshold for duty-free imports?
Under Section 321 of the Tariff Act, goods imported into the United States with a fair retail value of $800 or less may enter duty-free and tax-free. This is one of the highest de minimis thresholds in the world. Most other countries have lower thresholds, ranging from approximately $15 to $200.
Official sources
- U.S. International Trade Commission, Harmonized Tariff Schedule: HTS Online (USITC).
- World Trade Organization, Customs Valuation Agreement: WTO Customs Valuation.
- U.S. Customs and Border Protection, De Minimis: Section 321 De Minimis.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.