Declared Value

Declared value is the shipper-stated monetary worth of a shipment’s contents at the time of shipping. It serves two purposes: establishing the carrier’s maximum liability for loss or damage, and providing the value for customs duty assessment on international shipments.

Declared Value and Carrier Liability

Parcel carriers (UPS, FedEx) include standard liability of $100 per package in base rates. Declaring a higher value — say $800 for a shipment of electronics — increases the carrier’s liability to match and triggers an additional fee (typically $0.80–$1.10 per $100 of declared value above the included amount). Declared value is a contractual liability limit, not true insurance — it does not cover all loss scenarios the way cargo insurance does.

Declared Value for Customs

For international shipments, declared value on the commercial invoice must equal the genuine transaction value. Undervaluing to reduce duties is customs fraud, risking seizure, penalties, and loss of import privileges. For high-value shipments shipped regularly, standalone cargo insurance is typically more cost-effective than per-shipment declared value fees.