What Is CIF Value and How Is It Used for PVoC Minting Fees?

What CIF Means

Cost, Insurance, and Freight Explained

CIF is an international trade term (Incoterm) that specifies which party bears the costs and risks of transporting goods. Under CIF terms, the seller is responsible for the cost of the goods, the insurance for the goods during transport, and the freight cost to the destination port. The buyer takes responsibility once the goods arrive at the destination port.

For customs purposes, the CIF value is the declared value of the shipment at the South African port of entry. SARS Customs uses the CIF value to calculate import duties and taxes. CoC Vault uses the CIF value to calculate the minting fee for each CoC registration.

The CIF value is always expressed in the currency of the commercial invoice. If the invoice is in a foreign currency (USD, EUR, CNY, etc.), you must convert it to South African Rand (ZAR) using the exchange rate on the date of shipment before entering it in the CoC Vault registration form.

How to Find the CIF Value

On the Commercial Invoice

The CIF value is found on the commercial invoice for the shipment. The commercial invoice is issued by the supplier and describes the goods, quantity, unit price, total price, insurance, and freight costs. The CIF value is the total of the goods value + insurance + freight.

If the commercial invoice is on FOB (Free on Board) terms rather than CIF terms, add the insurance and freight costs to the FOB value to get the CIF value. Your freight forwarder can provide the freight cost and insurance cost if they are not on the invoice.

If you are unsure of the CIF value, ask your freight forwarder. They will have the freight cost and can help you calculate the CIF value from the FOB price on the supplier's invoice.

CoC Vault Minting Fee Tiers

How the CIF Value Determines Your Fee

CoC Vault uses the CIF value to calculate the minting fee on a tiered basis: 2% of CIF value for shipments up to R1 million; 1% for R1–10 million; 0.5% for R10–100 million. The minting fee is calculated automatically when you enter the CIF value in the registration form.

For a R500,000 shipment, the minting fee is R10,000. For a R2 million shipment, the minting fee is R20,000. For a R15 million shipment, the minting fee is R75,000. The minting fee is charged via Stripe in ZAR.