Cost: This is the total cost of the goods abroad including ex-factory price, commission, mark-up and inland freight but excluding sales tax and interest. The cost of the goods is sometimes expressed as FOB (Free on Board) or FOA (Free on Air)
Insurance: This is the insurance charge which is payable to transport the goods to Jamaica in order to ensure that some compensation will be available to you in the event of the loss or damage of the goods.
If you have not paid any insurance charges when freighting your goods to Jamaica, an insurance charge is still applicable for valuation purposes. For goods arriving by sea, the insurance charge is 1.5% of the total Cost and Freight (c. & f.), that is, if the goods cost US$100 and the freight charge is US$50, then C&F would be US$100 + US$50 = US$150. 1.5% of US$150, i.e. 150 x 3/200 = US$2.25. Total c.i.f. therefore is $100 + $50 + $2.25 = US$152.25.
For shipments arriving by air the insurance applicable is 1% of the total of the Cost and Freight.
Freight: This is the amount of money paid or payable to the shipping agent or the airlines for the goods to be shipped or transported to Jamaica, including inland freight, packaging and handling charges.