Currency Adjustment Factor (CAF)
The CAF surcharge: how a container line recovers exchange-rate movement against its tariff currency, and its treatment in the dutiable freight component.
The currency adjustment factor is a container-line surcharge that recovers movement between the currency in which the freight tariff is quoted, normally US dollars, and the currencies in which the carrier incurs its costs. It is expressed as a percentage of the base freight rate or as a fixed amount per container, and is revised on a published schedule.
Because it is a component of the freight for the sea leg, the CAF travels with the base rate into the customs value on a CIF-basis import under Union Customs Code Article 71(1)(e).
The full article will cover the calculation basis and the reference currency baskets carriers use, revision frequency and notice periods, the interaction with the bunker adjustment factor and other cost-recovery surcharges, the treatment of CAF in a fixed-rate service contract, and how a shipper tests whether a quoted CAF reflects actual exposure.