CIF (Cost, Insurance and Freight)
If you’re following the CIF calculation, note that CIF takes into account the value of goods, insurance and freight.
To begin, add the total value of your shipments, which is GBP 10,000 in this case, to the insurance and freight cost, which is GBP 500. This gives you a total CIF value of GBP 10,500.
Next, multiply the total CIF value by the customs duty rate of 4% from the UK tariff trade site, resulting in customs duties of GBP 420 applicable to your shipment.
In total, your shipment will cost GBP 10,920.
Calculation formula:
CIF x Goods Duty Rate = Customs Duty
Calculation breakdown:
1. Calculate the Total Value of 2000 Umbrellas:
GBP 5 x 2000 = GBP 10,000
2. Add the Total Value of 2000 Umbrellas with the insurance and freight cost to get the CIF Value:
GBP 10,000 + GBP 500 (Insurance and Freight Cost) = GBP 10,500
3. Calculate the Total Import Duty Rate:
GBP 10,500 x 4% = GBP 420