Declared Value
Declared Value is the value of the goods as stated by the shipper, and it appears in two important contexts. For customs, the declared value (on the commercial invoice) is the basis on which duties and taxes are assessed — under-declaring to reduce duty is a serious offence. For carriage, a shipper can make a declared value for carriage to raise the carrier's liability above the standard low per-package or per-kilo limit, usually for an additional charge.
The two must not be confused: the customs value protects the state's revenue, while the declared value for carriage buys the shipper more compensation if the carrier loses or damages the goods. Because standard carrier liability under a bill of lading or air waybill is capped far below most cargo's worth, declaring a higher value for carriage (or, more commonly, arranging separate cargo insurance) is how shippers protect high-value goods. Accurate declared values keep both customs and liability clear.
Declared value cuts two ways: under-declare to customs and you risk penalties; under-declare (or ignore declared value) for carriage and a lost shipment pays out at a tiny liability cap. Understanding both meanings — and usually choosing cargo insurance over declaring a high carriage value — is key to both compliance and protection.
What is declared value for carriage?
A higher value the shipper declares to the carrier (for an extra charge) to raise the carrier's liability above the standard low limit.
Why not just under-declare value to customs?
Under-declaring the customs value to reduce duty is a serious offence carrying penalties and cargo seizure.