Customs Value
Customs value is the value of imported goods on which import duty is calculated. In Indonesia it is CIF-based, meaning the price of the goods plus freight and insurance to the destination port, converted into rupiah at the tax exchange rate. The main method is transaction value under the WTO customs valuation principles. Illustration: CIF USD 10,000 at an illustrative rate of Rp16,000 per USD gives a customs value of Rp160,000,000. If the invoice is FOB, freight and insurance must be added.
Related terms
- Import Duty
Import duty is the state levy on imported goods, calculated as the BTKI 2022 rate times the customs value.
- Tax Exchange Rate (Kurs Pajak)
The tax exchange rate is the rate set weekly by the Minister of Finance and used to convert a customs value in foreign currency into rupiah.
- CIF (Cost, Insurance and Freight)
CIF works like CFR, but the seller must also take out cargo insurance for the buyer, at least at Institute Cargo Clauses (C) level and for at least 110% of the contract value.
- FOB (Free On Board)
Free On Board means the seller delivers the goods on board the vessel nominated by the buyer at the port of shipment; risk passes once the goods are on board.
- Commercial Invoice
A commercial invoice is the seller's bill to the buyer, listing the goods description, HS code, quantity, unit price, total value, currency and Incoterms rule.