Every import duty you pay is calculated as a percentage of your product's "customs value." Understanding what goes into this number — and what doesn't — can save you thousands in duty payments.
Customs value is the price CBP uses to calculate your import duties. In most cases, it's the transaction value — what you actually paid or will pay for the goods. But it's not just the product price. Certain costs are added and others can be deducted.
Product purchase price: The price on your commercial invoice.
Shipping to the US: International freight charges to the port of entry.
Insurance: Cargo insurance for the shipment.
Assists: Tools, molds, dies, or engineering work you provided to the manufacturer to produce the goods.
Royalties and license fees: If you pay royalties as a condition of the sale.
Packing costs: The cost of containers and coverings.
Domestic freight: Shipping from the US port to your warehouse is NOT part of customs value.
Buying commissions: Fees paid to your own purchasing agent can be deducted.
Post-importation costs: Installation, assembly, maintenance after arrival.
International freight discounts: If you get below-market shipping rates, use the actual rate paid.
Including domestic freight: Many importers accidentally include US trucking costs, inflating their customs value and paying more duty than necessary.
Not deducting buying commissions: If you pay a sourcing agent in China, that fee is generally deductible from customs value.
Using estimated shipping costs: Always use actual freight costs, not estimates. Overestimating shipping increases your customs value and your duty bill.
Calculate Duties Based on Your Customs Value
Landed Cost Calculator →Usually yes, but customs value may also include shipping, insurance, and assists. It's the total transaction value plus applicable additions.
Yes. Ensure you're not including non-dutiable costs like domestic freight and buying commissions. Use actual shipping costs, not estimates.