Declared value is the monetary value assigned to goods by the shipper, importer, or seller for shipping, customs, or insurance purposes. In logistics, declared value may affect carrier liability, cargo insurance coverage, customs duties, taxes, and import documentation. It should reflect the shipment’s commercial value and be supported by invoices or other records. Declared value is not always the same as insured value, and inaccurate declarations can cause customs delays, underinsurance, penalties, or claim disputes. In customs, declared value is the transaction value stated on the commercial invoice used as the basis for duty calculation, and carriers may offer declared value options that adjust their liability limits.
- Insurance declared value should equal the commercial invoice value plus freight plus a 10 percent profit margin
- Customs declared value must reflect the actual transaction price paid or payable
- Undervaluing goods for customs or insurance purposes is a compliance violation
- Carriers have minimum declared value liability limits; declare higher value for more coverage at extra cost
Related terms: Customs Valuation.
