Posted in Operations and Supply Chain Terms, Total Reads: 292
Definition: Declared Value for Carriage
Declared Value for Carriage is defined as the value of a shipment as affirmed by its shipper to serve as the basis in order to computing freight charges, and for limiting the carrier’s liability for damage, loss, or delay. It usually depicts the cost price of the shipment, and is generally lower than the declared value for customs.
Customs official’s uses a shipment's declared value - the value the shipper declares on the goods being shipped - along with the details of the goods, to find out duties and taxes. This means it's very essential to make sure that the declared value on the air waybill and commercial invoice is exact. Inaccurate declared value is one of the most common reasons for duty and tax disputes. A shipment's declared value shows the selling price or fair market value of the contents of the shipment, even if not sold (e.g. Beverages samples).
This value is identified as the "Total Value for Customs" and must be in harmony with the worth shown on the Commercial Invoice.
The Declared Value for Carriage of any Package represents FedEx's highest liability in link with a shipment of that parcel, including but not limited to, any loss, damage, delay, wrong delivery, any failure to provide information, or faulty delivery of information relating to the Shipment. Exposure to and risk of any loss in surplus of the Declared Value for Carriage is understood by the Sender.
Rule of Thumb: The Declared Value for Carriage cannot go above the Declared Value for Customs.
For Shipments containing the following items of high value the Declared Value for Carriage is also limited and depends on the contents and destination of the Shipment:
- Work by Artists, including any work created or developed by the use of skill, taste or inventive talent for sale, display or collection. This includes items such as paintings, drawings, vases, tailored or personalized musical instruments or comparable items.
- Antiques or any commodity that exhibits the style or fashion of a past era and whose history, age or uncommonness adds to its value. These items include but are not limited to, furniture, tableware, porcelains, glassware, and ceramics. Collectable items may be contemporary or relating to a past era.
- Film, photographic images, including photographic negatives, chromes and slides.
- Any product that by its inherent nature is particularly at risk to damage, or the market value of which is mostly variable or difficult to determine.
- Jewellery, including costume jewellery, watches and their parts, gems or stones, industrial diamonds and jewellery made of precious metal.
- Precious metals, gold and silver, silver bullion or dust, precipitates or platinum.
- Furs, including fur clothing, fur-trimmed clothing and fur pelts.