# Customs Valuation: FOB vs CIF

If you have ever sent or received goods to or from another country, you’re
likely familiar with paying import duty. But have you noticed that the duties
that you pay are different depending on what and where you’re
importing/exporting? That’s because different countries have different duty
rates based on the type of products being imported, the Harmonized System (HS)
code [https://help.urshipper.com/article/1037-HS-Codes], and other factors. The
ways different countries assess duty are called valuation methods.

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FOB (FREE ON BOARD)

Method for calculating import duties where the fees are calculated only on the
cost of the goods sold. FOB is not calculated on the shipping, duty, insurance,
etc.



List of countries that use the FOB valuation method:

ISO Code

Country Name

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

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CIF (COST, INSURANCE, AND FREIGHT)

Method for calculating import duties where the tax is calculated on the cost of
the order plus the cost of freight, insurance, and other costs (if any).



All other countries (any country not in one of the FOB lists above) use the CIF
calculation method. It is the most widely used duty calculation method.