Customs Value
The taxable base for calculating import duties and VAT, generally equal to the CIF value of goods at the point of entry into the customs territory.
In detail
Customs value is the foundation of all import duty calculations. The primary method under EAEU (Eurasian Economic Union) rules — applicable to Russia — is Method 1: Transaction Value, which uses the price actually paid or payable for the goods when sold for export to Russia, adjusted to CIF basis at the Russian border. Items included in customs value: invoice price, ocean freight to the Russian border, marine insurance, loading/unloading costs prior to import. Items excluded: post-border costs (domestic delivery, Russian VAT, customs duties themselves). If customs suspects the declared value is below market benchmarks (risk profiles maintained by Federal Customs Service — ФТС), they may initiate a Customs Value Adjustment (КТС — Корректировка Таможенной Стоимости), demanding additional documentation to support the price. To defend against KTS: maintain a complete documentation file — Chinese export declaration, bank payment records, supplier price lists, and correspondence confirming the price.
Examples
- →FOB $10,000 + freight $1,200 + insurance $100 = customs value $11,300 × duty 5% = $565 duty; ($11,300 + $565) × 20% VAT = $2,373
Related terms
FOB (Free on Board)
Incoterms 2020 rule: seller is responsible until goods are loaded on board the vessel at the named port; all risk and cost pass to the buyer from that moment.
CIF (Cost, Insurance and Freight)
Incoterms 2020 rule: seller pays freight and provides minimum insurance to the named destination port, but risk transfers to the buyer at the port of loading.
HS Code (Harmonized System Code)
The international 6-digit product classification code used worldwide to determine customs duty rates and regulatory requirements.
Customs Broker
A licensed professional authorized to file customs declarations and manage customs clearance on behalf of importers and exporters.