# Taxability of insurance

Source: https://developer.avalara.com/products/crossborder/integration-guides/avatax-for-cdit/vci1706952085020/

Guide: AvaTax Cross-Border (Customs Duty and Import Tax)

# Taxability of insurance

Understand how to handle the taxability of insurance for Customs Duty and Import Tax transactions.

Freight tax code requirements were previously described when you earned your VAT badge. For Customs Duty and Import Tax transactions, Avalara also provides a tax code for insuring the delivery of a shipment: FR070100. If insurance is required, then this can be specified as a separate line item on a transaction. Alternatively, the insurance can be included in the total amount along with the cost of the item and the freight. The example below shows how to include freight insurance as a separate line item.

**Example**

```
...
  "lines": [{
    "number":"1",
    "quantity":1,
    "amount":100,
    "taxCode":"P0000000",
    "itemCode":"Test SKU",
    "description":"Test Item Description",
    "discounted": false,
    "taxIncluded": true
  },
  {
    "number":"2",
    "quantity":1,
    "amount":10,
    "taxCode":"FR070100",
    "itemCode":"Test SKU Insurance",
    "description":"Freight Insurance",
    "discounted": false
  }
...
```