Simplified formula
Customs value estimate = goods value + freight to the UK + insurance.
That is useful for planning, but customs valuation is a legal framework with adjustments and alternative methods where the transaction value is not suitable. Do not assume a commercial invoice total is automatically the final customs value.
Example
| Input | Amount |
|---|---|
| Goods | £1,000 |
| Freight | £150 |
| Insurance | £10 |
| Simplified customs value | £1,160 |
If a 5% ad-valorem duty applied, the simplified duty estimate would be £58 before considering any preference, quota or other measure.