CIF is an acronym for Cost, Insurance and Freight. It is a standard used internationally to value imported goods. Customs in Jamaica use the CIF value in calculating the amount of Duties, Taxes or Fees payable on goods imported.
CIF has three components:
Cost
Insurance
Freight
COST
The Cost is the total paid for the goods abroad. Cost is often called FOB (Free On Board) or FOA (Free On Air) Cost include the following amounts once they are incurred in the country from which the goods came:
Ex-factory price
Commission
Mark-up
Sales Tax
Inland Freight
INSURANCE
The insurance is the amount paid as insurance in transporting the goods to Jamaica If no insurance was paid directly by the importer, an estimated insurance cost is still calculated and used in the CIF value:
For goods arriving by sea 1.5% of the Cost and Freight.
For goods arriving by air 1% of the Cost and Freight
FREIGHT
The total amount of monies paid to the airline or shipping agent to transport the goods to Jamaica Freight charges include any of the following incurred in the country from which the goods came:
Inland Freight (transportation charges paid within the foreign country)
Packaging
Handling
Example
Cost: You paid US$100 for the item
Freight: You paid US$90 to freight the item to Jamaica
Cost & Freight Value: US$100 + US$90 = US$190
Insurance: The insurance cost is 1% of the Cost & Freight Value = US$1.90
(in this example we assume item arrived by air. If it came by sea the insurance would be 1.5%)
CIF Value: The total CIF Value of this item is ($100 + $90 + $1.90): US$191.90)