Calculators

Customs value calculator: from FOB to the value that bears duty

Independent site, not a government service. General information, not customs advice.

Duty is charged on the value at the place of importation. Enter your FOB price and what you know about freight and insurance: empty fields use the fallback in the rule.

Customs value from an FOB price

Customs value

₹6,05,625

Freight, 20% of FOB₹1,00,000
Insurance, 1.125% of FOB₹5,625

Rule 10(2), Customs Valuation Rules 2007. Commissions, royalties and assists can also apply.

Carry it into the duty calculator →

Indian customs duty is not charged on the invoice price as such, but on a value built under section 14 of the Customs Act and the Customs Valuation Rules, 2007. Section 14 starts from the transaction value, the price actually paid or payable for goods sold for export to India. Rule 10(2) then says that the value includes the cost of transport, loading, unloading and handling to the place of importation, and the cost of insurance to that place. If the transport cost cannot be ascertained, it is taken as 20 per cent of the FOB value. If insurance cannot be ascertained, it is 1.125 per cent of the FOB value. For goods imported by air, transport costs that can be ascertained are capped at 20 per cent of FOB. This calculator applies those provisions, and names whichever one it used in the result.

Does your invoice price cover freight and insurance?

Starting customs value

₹5,45,000

Freight added₹40,000
Insurance added₹5,000
What to look at: Add the sea freight and the insurance.

Our summary of how each rule splits costs, for customs value only. Check your contract.

Calculate the duty →

Tariff and rules read by Radif Partners · Editorial policy · Method and sources

The arithmetic

With an FOB value of ₹5,00,000 and neither cost known: freight 20% is ₹1,00,000, insurance 1.125% is ₹5,625, and the customs value is ₹6,05,625. Showing a real freight invoice of ₹40,000 and insurance of ₹5,000 brings it down to ₹5,45,000, and that gap then carries through to duty and IGST. It shows why a clean set of freight documents can be worth having.

The figures you type are taken at face value. Foreign currency amounts must first go through the exchange rate for customs.

When the invoice price is not accepted

Section 14 applies where buyer and seller are not related and price is the sole consideration for the sale. Otherwise, the rules set out other ways to reach a value. Customs can also ask for evidence if a declared value looks doubtful. This is the point at which a general tool stops being useful and a customs broker starts to be worth paying for.

How delivery terms affect your starting point

Your invoice may already contain freight, insurance or even duty, depending on the delivery term. The second tool on this page helps you decide what still has to be added for each of the Incoterms® Rules. The rule text is at rule 10 on the CBIC portal, and we read it on 2 November 2026.

Questions people ask

What happens if I do not know the freight cost?

Rule 10(2) supplies a figure: where transport cost is not ascertainable, it is 20 per cent of the FOB value. Insurance not ascertainable is 1.125 per cent of FOB. Leave those fields empty to apply them. If your real freight is lower, showing the freight invoice usually gives a lower value, so keep your documents ready.

Does the customs value include commission and royalties?

It can. Rule 10(1) adds commissions other than buying commissions, packing costs, royalties and licence fees tied to the goods, and goods or services supplied by the buyer free to the seller. This tool does not ask for each one: add them to your FOB figure if they apply, and keep the working to show at assessment.

Are unloading costs in India part of the value?

Rule 10(2) includes loading, unloading and handling charges associated with delivery to the place of importation, and it has separate wording on demurrage on chartered vessels, lighterage and barge charges. Transshipment costs to another customs station in India are excluded by a further proviso. Read the text for your own case, as this tool works with totals only.

Check next

Import duty calculator

Type an FOB value, an exchange rate and a tariff line: BCD, surcharge and IGST step by step.

CIF meaning

Cost, Insurance and Freight in plain words, how close a CIF invoice is to the customs value, and the duty on it.

FOB meaning

Free on Board in plain words: delivery on the ship, the buyer bears costs from then on. How customs in India builds the value from a FOB price.

Exchange rate for customs

Customs converts your invoice at a rate set by CBIC, not at your bank rate. Why this matters, and why our default is only an example.

Landed cost calculator

Add customs value, duty, IGST and your port and inland costs to get a cost per unit, with or without the IGST you can credit.

Official texts behind this page

Written by

Independent publisher of a working reference on Indian customs duty, tariff lines and import logistics

Sources read on · Editorial policy · Contact

Indian customs duty and import logistics 2026, read in the tariff, notifications and rules, last checked on