Declared value
What is declared value in transportation?
Declared value is the value placed on imported goods by the party importing them. Declared value information is needed for clearance at an international port of entry—import duties are calculated based on the declared value of imported goods, and customs and border agencies use it to determine shipment value.
Declared value in transportation also refers to the monetary value of a shipment that a shipper reports to a carrier providing transportation services.
How is a declaration of value determined for imported shipments?
Declaration of value for a shipment is determined and submitted by a shipper importing goods, based on their knowledge of the cargo's monetary value. Value declaration is critical to gaining clearance and maintaining compliance when importing a shipment.
Customs and border agencies reference the declared value when setting the customs value of a shipment, which is then considered in calculating tariffs or taxes imposed on goods transported internationally.
Which entity files a declaration of value?
When shipping goods internationally, the importer of record, using reasonable care, must file the declared value with U.S. Customs and Border Protection (CBP).
Imported goods can't be cleared without a declared value defined for the shipment. CBP's Customs Modernization Act states it is the responsibility of the importer of record to use "reasonable care" to "enter," "classify" and "value" the goods.
According to CBP, Customs holds responsibility for setting the final appraisement of cargo, which occurs after the importer of record has filed the declared value for the shipment.
If a customs broker is involved in the import process, they may be responsible for filing the declaration of value.
Why does declared value matter in cross-border shipping?
According to CBP's Customs Modernization Act, goods entering the U.S. must be classified and their value determined. This information enables CBP to determine where in the U.S. tariff system imported goods fall.
Classification and declared value are used to properly assess duties, collect accurate statistics and determine other applicable legal requirements, including Partner Government Agency (PGA) regulations.
When declaration of value is properly filed, global shipping runs more smoothly and goods are less likely to be slowed at customs.
How technology helps companies navigate declared value regulations
International transportation requires extra care and paperwork. International customs and compliance regulations can disrupt supply chains when they aren't well integrated into the management workflow.
The right technology helps keep shippers on track when it comes to checking all the boxes for importing goods, with capabilities that support:
Customer and vendor entity management
Standard code reference and assignment
U.S. Customs filing templates
Product database
Open search
Some importers use services from customs brokers, which help businesses navigate customs requirements such as declaration of value. Shippers work with customs brokers to:
Determine the value of goods
Manage customs paperwork and requirements
Submit documents accurately and on time
Pay all duties and taxes correctly and on time
As businesses navigate changing compliance, regulatory and customs requirements, global transportation expertise is critical.