What is Declared Value?

The declared value is the value of the goods you're shipping, as stated to customs. In most cases this is the transaction value – the actual price you paid for the items. The destination country's customs authority uses it to clear your goods and calculate any duties and taxes owed.

For example, if you're shipping two watches that cost $160 each, the declared value is $320.

How do I determine the declared value?

Always declare the actual price you paid, and be ready to prove it. The declared value should reflect what the goods are genuinely worth – normally the price on your purchase receipt. Shipping costs are excluded unless the destination country specifically requires them to be included.

If you bought the items at a discount, declare the discounted price you actually paid, not the full retail price. The key principle is that your declared value must match a transaction you can evidence.

Commercial, wholesale, and cost price – what's the difference?

Customs may refer to different types of value. For most personal shipments, the first one applies:

• Commercial (retail) value – the price an end buyer pays for the product. For most personal purchases, this is also your declared value.
• Wholesale value – the price paid per item when buying in bulk, and roughly what it would cost a seller to replace a lost or damaged product. If you bought at wholesale, this is your declared value.
• Cost price – what it costs the producer to make the item. If customs don't believe your declared value and have no other way to assess it, they may use the cost price to calculate duties.

Why does the declared value matter?

It serves two important purposes:

• Customs clearance – customs use it to clear your goods and calculate duties and taxes. For how those charges are worked out, see How are duties and taxes applied?
• Shipping insurance – the declared value is also the basis for insurance coverage, so make sure it matches the item's real worth to be fully covered in case of loss or damage

How do customs check the value?

Most customs authorities follow the World Trade Organization's standard valuation methods. If they question your declared value, they can ask you to provide proof of what you paid – such as a receipt, order confirmation, or bank payment record. At Forward2me, you provide this by uploading your purchase invoice to your account. See How to upload your invoice for steps.

What happens if I declare the wrong value?

Declaring a value lower than what you paid – known as undervaluation – is taken very seriously by customs authorities and is often illegal. It can lead to:

• Fines and penalties
• Shipment seizure or confiscation
• Delays in customs clearance
• Voided shipping insurance coverage

Customs can inspect shipments and independently reassess their value, so an accurate declaration is always in your best interest. Whether you pay any resulting duties and taxes upfront or on arrival depends on your shipping option – see Delivered Duty Paid (DDP) with forward2me.

If you have further questions, please contact our Customer Experience team.