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Ad valorem duty

A percentage of the dutiable value, after taking international freight and insurance out of a CIF price.

Worked example

An importer enters goods of subheading 6210.40.55 (Garments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: Other), general rate 7.1%. The invoice shows a CIF price that includes separately stated international freight and insurance. What is the duty?

CIF invoice price
$30,845.92
International freight (included)
$3,460.74
Insurance (included)
$244.54
General rate
7.1%
  1. Dutiable value excludes international freight and insurance (19 CFR 152.102(f)): $30,845.92 - $3,460.74 - $244.54 = $27,140.64.
  2. Duty = $27,140.64 x 7.1% = $1,926.99.

Answer: $1,926.99

Where it comes from: HTSUS 6210.40.55, 19 CFR 152.102(f)

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