The price actually paid or payable for the imported goods
Tools, dies, moulds, or materials supplied free or at reduced cost to the producer
Any part of the proceeds of resale that accrues to the seller
Reg. 07380272 · England & Wales · Est. 2010
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CIF Value
£10,600.00
Transaction Value
£10,000.00
Total Additions
£0.00
Import VAT (est.)
£2,226.00
No additions to the transaction value. Enter commissions, royalties, packaging, assists, or proceeds to seller above if applicable.
Duty rates vary by commodity code. The estimates above show duty at typical 5% and 12% rates. Import VAT is calculated on the CIF value plus duty (assuming 5% duty rate). Use the HMRC Trade Tariff to find your exact duty rate.
Everything you need to know about customs valuation in the UK
What is the transaction value method?
The transaction value method is the primary method for determining customs value under WTO rules and UK law. It is based on the price actually paid or payable for the goods when sold for export to the UK, adjusted for certain additions (such as commissions, royalties, and assists) and deductions. The transaction value is the starting point for calculating customs duty and forms the basis of the CIF value when freight and insurance are added.
What is the difference between CIF and FOB?
CIF (Cost, Insurance, Freight) includes the cost of goods, insurance, and freight to the UK port of entry. The UK uses CIF as the basis for customs valuation. FOB (Free on Board) includes only the cost of the goods up to the point they are loaded onto the ship at the port of export. FOB excludes international freight and insurance. When goods are purchased on FOB terms, you must add freight and insurance separately to arrive at the CIF value for customs purposes.
What are assists in customs valuation?
Assists are goods or services provided by the buyer to the seller free of charge or at a reduced cost, which are used in the production of the imported goods. Examples include moulds, dies, tooling, artwork, engineering drawings, materials, components, and development work carried out outside the UK. The value of assists must be added to the transaction value when calculating customs value. The cost should be apportioned if assists are used across multiple shipments.
When must royalties be included?
Royalties and licence fees must be added to the transaction value when they relate to the imported goods and are a condition of the sale. This includes payments for patents, trademarks, copyrights, and manufacturing processes. If the royalty is not a condition of sale — for example, a marketing licence fee paid to a third party — it may not need to be included. The key test is whether the buyer cannot purchase the goods without paying the royalty.
When is the transaction value method rejected?
HMRC may reject the transaction value if the buyer and seller are related parties and the relationship influenced the price, if there are restrictions on the buyer’s use or disposal of the goods (other than legal restrictions), if part of the proceeds of resale accrue to the seller and cannot be quantified, or if there is no sale (e.g. goods on consignment or free samples). In these cases, alternative valuation methods are used in a prescribed order.
What are the alternative customs valuation methods?
When the transaction value method cannot be used, HMRC applies alternative methods in this order: (1) Transaction value of identical goods — same goods previously imported at the same commercial level; (2) Transaction value of similar goods — goods that are commercially interchangeable; (3) Deductive method — based on the UK selling price minus deductions for duties, transport, and profit; (4) Computed method — based on cost of production plus profit and general expenses; (5) Fall-back method — reasonable means consistent with WTO principles.
HMRC-Aligned: This calculator uses the transaction value method as prescribed by the Customs Valuation (Determination of Value of Imported Goods) Regulations and WTO Valuation Agreement. For complex valuations involving related parties or assists, consult a customs broker.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms