Enter the value of the goods (invoice/transaction value), cost of insurance, cost of freight, and handling/other charges into the calculator to estimate the assessable (customs) value used for duty/tax calculations (rules vary by country).
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Assessable Value Formula
The following equation is a common simplified way to estimate an assessable (customs) value when it is based on the value of the goods plus shipping-related charges.
AV = V + I + F + H
- Where AV is the assessable value (currency)
- V is the value of the goods (invoice/transaction value) (currency)
- I is the cost of insurance (currency)
- F is the freight cost (currency)
- H is handling and/or other charges that must be included under the applicable customs valuation rules (currency)
To estimate the assessable value using this model, add the value of the goods (invoice/transaction value), insurance, freight, and any handling/other charges that must be included under your country’s customs valuation rules.
What is an Assessable Value?
Definition:
Assessable value (often called customs value or dutiable value) is the value determined under a country’s customs laws that is used to calculate import duties and import taxes. In many jurisdictions it starts with the transaction value (the price actually paid or payable) and then includes required additions (for example, certain freight/insurance charges, commissions, royalties, or packing costs), depending on the rules in that country.
Example: If an automobile is imported into Canada, the duty/tax payable is generally calculated by applying the applicable duty rate (based on tariff classification and any preferential treatment from the vehicle’s country of origin under a trade agreement) to the vehicle’s customs/assessable value as determined under CBSA valuation rules.
In import and export logistics, the assessable value is not the amount of duty or tax itself; it is the value that customs uses to assess (calculate) duties, taxes, and other charges.
