Calculation Methods for Duties, Taxes & Fees

The calculationMethod field indicates how duty, tax, or importation fee is calculated. This method defines the formula applied to determine the amount based on cost, weight, or quantity. Below are the supported types:

A. Rate% CostBase

The charge is calculated using a percentage of the item's value or other cost base components.

Examples:

  • 5% FOB : 5 percent of the item's cost was used to calculate the duty/tax/fee.
  • 5% CIF : 5 percent of the item's cost + shipping + handling + insurance.
  • 5% CFR : 5 percent of the item's cost + shipping.

Additional Tax-Specific Examples:

  • 5% FOBD : 5 percent of item's cost + duty (for tax only).
  • 5% CIFD : 5 percent of item's cost + shipping + insurance + duty.
  • 5% DUTY : 5 percent of the calculated duty amount.
  • 5% FREIGHT : 5 percent of the item's shipping cost.

B. Value per UNIT or UOM

The charge is calculated as a flat rate applied per unit or per unit of measurement (UOM).

Examples:

  • .05 CAD/UNIT : 0.05 CAD per item.
  • .05 CAD/LB : 0.05 CAD per pound of weight.

C. [Rate% CostBase] plus [Value per UNIT or UOM]

A hybrid method where both a percentage and per-unit rate are combined.

Example:

  • 5% FOB plus .05 CAD/UNIT
    5 percent of item's cost plus 0.05 CAD per item.

D. Lesser of [Rate% CostBase] or [Value per UNIT or UOM]

The system calculates both ad valorem and unit-based charges and returns the lower of the two.

Example:

  • Lesser of 5% FOB or .05 CAD/UNIT : Minimum of value-based or unit-based cost is applied.

E. Greater of [Rate% CostBase] or [Value per UNIT or UOM]

The system calculates both ad valorem and unit-based charges and returns the higher of the two.

Example:

  • Greater of 5% FOB or .05 CAD/UNIT : Maximum of value-based or unit-based cost is applied.