Answer

What Is Customs Value for Ecommerce?

Understand customs value definition, how it is calculated, and what ecommerce sellers need to declare for international shipments.

Calculate Customs ValueEstimate Import Duty
Answer summary
Question

What is customs value and how do I calculate it for ecommerce imports?

Direct answer

Customs value is the value assigned to imported goods for the purpose of calculating import duties and taxes. For most ecommerce shipments, customs value is based on the transaction value: the price actually paid or payable for the goods, plus additions such as freight, insurance, and royalties. The customs value is entered into the Import Duty Calculator to estimate the duty portion of the landed cost.

What you need
  • Transaction value: the price paid or payable for the goods
  • Freight and insurance costs to the destination border (if included in the price)
  • Royalties or license fees related to the goods (if applicable)
  • Assist items: materials or components supplied by the buyer (if applicable)
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Source note

Verify the final code, rate, origin treatment, and document requirements in official destination sources before filing or shipping.

Last reviewed

July 2026

What customs value means for ecommerce

Customs value is the assessment base used by customs authorities to calculate import duties and taxes. It is not the same as the retail price, the selling price on your storefront, or the shipping fee alone. The customs value follows specific rules set by the WTO Valuation Agreement and implemented by each country's customs law. Understanding what goes into customs value helps you prepare accurate inputs before using a duty calculator or generating a commercial invoice.

The transaction value method

For most ecommerce purchases, the transaction value is the primary method for determining customs value. This is the price actually paid or payable for the goods by the buyer to the seller, plus certain additions and minus certain deductions as specified in the destination customs law.

  • Price actually paid or payable: the total amount the buyer pays to the seller for the goods.
  • Freight to the border: transportation costs to the destination country border may be added.
  • Insurance costs: if insurance was purchased for the international shipment, it may be added.
  • Royalties and license fees: if paid as part of the purchase, they may be added to the customs value.
  • The value of any assists: materials or components supplied by the buyer to the seller may be added.

What is NOT included in customs value

Some costs are explicitly excluded from customs value under the WTO Valuation Agreement and national implementations.

  • Transportation costs after arrival at the destination border (e.g., domestic delivery fees).
  • Import duties, taxes, and other charges collected in the destination country.
  • General expenses, commissions, or marketing costs not related to the sale.
  • Currency exchange costs.

Customs value vs declared value

The customs value is the base for duty calculation. The declared value on the commercial invoice is the seller's representation of that value. When they match, there is no discrepancy. When the declared value is lower than the actual customs value, customs authorities can re-assess the value, collect additional duties, apply penalties, and hold shipments.

  • Customs value: the official assessment base for duty calculation, following WTO Valuation Agreement rules.
  • Declared value: the value written on the commercial invoice by the shipper.
  • Retail or selling price: the price charged to the end consumer, which may include domestic profit and costs not relevant to the import.

Ecommerce seller example

An ecommerce seller imports 100 units of phone screen protectors from a supplier in China. The purchase price is USD 1.50 per unit, total USD 150. International freight to the US border is USD 30. Insurance is USD 5.

  • Transaction value: USD 150 (price paid to supplier).
  • Freight addition: USD 30 (to US border).
  • Insurance addition: USD 5.
  • Customs value: USD 185 (USD 150 + USD 30 + USD 5).
  • The duty rate applied to USD 185 gives the estimated duty portion.

Source-backed checks

The customs value rules follow the WTO Valuation Agreement, with each country implementing its own customs valuation law. The following official sources provide the authoritative framework for customs value determination.

Editorial

About this answer

Written by TariffCatalog Editorial Team

Maintained by Ryan Cole. Reviewed for customs-data workflow clarity. Last reviewed: July 2026.

This page follows TariffCatalog's methodology for customs data preparation, estimate-only calculations, and document draft workflows.

MethodologySourcesReport an error
Maintainer

Reviewed by Ryan Cole

Ryan Cole maintains TariffCatalog from the perspective of a long-time ecommerce operator with 15+ years of experience in product catalog, international shipping, and pre-shipment data workflows. This page is reviewed for customs answer clarity, source-check clarity, and estimate-only or candidate-only wording.

TariffCatalog is a preparation aid, not a customs broker, legal, tax, or freight-forwarding service. Verify final classifications, rates, documents, and filing treatment with official sources or qualified professionals.

Official Source Note

Verify before filing

USITC HTS

Use this official source to verify final classification, duty rate, and customs requirements.

CBP

Use this official source to verify final classification, duty rate, and customs requirements.

EU TARIC

Use this official source to verify final classification, duty rate, and customs requirements.

UK Trade Tariff

Use this official source to verify final classification, duty rate, and customs requirements.

Related Tools

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Customs Value CalculatorImport Duty CalculatorCommercial Invoice GeneratorIs Shipping Included in Customs Value?
FAQ

Common questions

What is customs value?

Customs value is the value assigned to imported goods for the purpose of calculating import duties and taxes. It is determined by customs authorities based on the transaction value method (most common), or other methods when transaction value cannot be used. The customs value is not the same as the selling price, retail price, or shipping fee alone; it follows specific rules under the WTO Valuation Agreement and each country's customs law.

Is customs value the same as the price on my invoice?

Not always. The price on your invoice is the starting point, but customs value may add or subtract certain elements to arrive at the official assessment base. For example, freight to the destination border and insurance may be added; import duties paid in the destination country are subtracted. The Customs Value Calculator helps you work through these adjustments.

Is shipping included in customs value?

It depends on the incoterms used. Under CIF (Cost, Insurance and Freight), freight and insurance are included in the customs value. Under FOB (Free on Board), only the product cost is included; freight and insurance are added separately for customs purposes. Under DDP (Delivered Duty Paid), the seller pays everything including duties and taxes. Always check the incoterms and confirm which costs are included with your carrier or broker.

What is the de minimis threshold?

De minimis is the value threshold below which no import duty is collected. The US de minimis threshold for express shipments is currently USD 800 (higher for some channels). Many countries have different thresholds. Above the de minimis, duty is calculated on the customs value. The threshold varies by country and by import channel; always verify the current threshold for the specific destination country and shipment type.

What happens if I declare a lower value than the actual customs value?

Undervaluing is illegal and can result in penalties, additional duty assessments, shipment holds, and seizure. Customs authorities have the right to re-assess the value of imported goods based on available evidence. If the declared value is significantly below the expected transaction value for that type of goods, customs may request supporting documentation or reject the entry.

Do I need to declare the value for every item or the total shipment?

Customs value is calculated for the total shipment, not per individual item, unless the items are imported separately. On the commercial invoice, you list each item with its individual value and quantity, then show the total customs value at the bottom. The total is the basis for duty calculation.

Can I use the retail price as customs value?

No. Retail price includes domestic costs, margins, and profits that are not part of the customs value. The customs value is based on the transaction value between buyer and seller, which is typically the wholesale or supplier price. Using the retail price would overstate the customs value and result in excessive duties.

Who determines the customs value?

Customs authorities in the destination country determine the customs value. Their decision follows their national customs valuation law, which must comply with the WTO Valuation Agreement. If there is a dispute about the declared value, the importer has the right to provide evidence and appeal the assessment through the customs administration's procedures.

Last reviewed: July 2026

Disclaimer

TariffCatalog provides candidate HS code suggestions, estimate-only calculators, and document drafts. Verify final classifications, duty rates, document requirements, and filing obligations with official sources, carriers, brokers, or destination authorities before filing or shipping.