Insurance costs
Insurance costs covering imported goods during transport, to be included in customs value up to the point of introduction into the EU customs territory.
Definition and principle
Insurance costs constitute, together with transport costs, an essential element of customs value under the CIF system applied by the European Union. Insurance costs covering goods during their carriage to the point of introduction into the EU customs territory must be added to the price actually paid or payable.
Legal framework
The inclusion of insurance costs is provided for by article 71, paragraph 1, point (e) of the UCC. Delegated Regulation 2015/2446 specifies the inclusion modalities. Unlike some third countries that apply a FOB (Free on Board) system, the EU systematically includes insurance costs in customs value.
Application rules
- Only insurance costs relating to transport to the point of introduction into the EU are included
- Insurance costs covering transport within the EU are excluded if they can be separately identified
- If goods are not insured, no insurance cost is added (unlike transport costs, there is no obligation to include a theoretical cost)
- If insurance covers the entire transport (origin to final destination), a proportional allocation must be made
Key considerations
- Check whether the Incoterm used includes or excludes insurance: CIF and CIP include insurance, CFR and CPT exclude it
- "Floating" or "open" insurance policies covering multiple shipments require a per-consignment cost allocation
- Buyer's credit insurance is not transport insurance and must not be included in customs value