Why should I declare the true value of my shipment?

What is Declared Value?  The declared value of a shipment is what the sender says the shipment’s goods are worth. It has two important purposes: 

  • ensuring speedy customs clearance and getting better shipping value from couriers: In the case of customs clearance, this value is assigned to imported goods by the importer of records.

It is of great importance that when you ship, endeavor to declare the true value of your item for your own benefit.

-What happens if you don’t declare the value of your package?

You need to be accurate while declaring this value especially in the case of international shipping. If in any case customs suspect that the shipment is not declared properly, then your package will be held.

The regional customs officer will require your proof of purchase to get your shipment moving again. When shipping internationally, a common question we get is what value should we declare.

The declared value is, along  the H.S. (harmonized system) classification, the key element of the import process and duty assessment. Over declarations result in needless costs and under-declared values can result in significant fines and legal actions.

When sending international shipments, it is important to understand the value that should be applied to your international shipment.

We review the key concepts to understand for declaring a value for your international shipment.

  • Transaction value and other valuation methods
  • Valuation for online orders: Bulk wholesale versus single entry retail
  • Cost and process advantages: Traditional retail logistics versus direct online import

The value of imported goods is one of the elements used for assessment of duty.

The three elements to determining the duty rate:

  1. Value for the Goods
  2. Origin of the Goods
  3. Customs tariff classification

For importing to most countries, the best declared value is the “transaction value. 

Before sending your international shipments, we advise our customers to consult with the receiver on which value to declare as valuation is most important to import processes.

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