How to Calculate the Declared Value of Your Package

How to Calculate the Declared Value of Your Package“Declared value” is a required field in any international shipping label form. It serves two main purposes: determining the amount of insurance coverage and shipping cost, and ensuring hassle-free customs clearance. Let’s figure out how to calculate the declared value of your package in order to avoid any problems with the customs or while claiming insurance.

To put it short, the declared value of your shipment is what you say its contents are worth. When it comes to international shipping, the declared value determines the amount of compensation you’re due in case of damage, loss or theft of your package, as well as the amount of customs duties and taxes owned for the shipment.

So, it is important to get the declared value of your shipment right for two reasons: to make sure you get a full reimbursement in case of damage or loss and to avoid any problems with customs. The second reason is arguably more important than the first one. Sometimes senders deliberately undervalue their packages to avoid paying too much in customs fees. However, it can result in your shipment being seized or a hefty fine.

As far as insurance coverage is concerned, you need to keep in mind that some carriers have limited liability for loss or damage. These limits usually depend on the countries of origin and destination, as well as the shipping service you choose (the cheaper the service, the less the carrier’s liability).

If the declared value of your package exceeds the maximum limit set up by the carrier, you won’t get reimbursed its full value. Because of this, it is typically recommended to purchase additional third-party shipping insurance when shipping expensive items.

To protect your shipment and yourself, you need to make sure that the declared value of the mailpiece matches the actual value of all items in the package. To calculate the declared value of a personal shipment, you need to add up the cost of each item to find the total cost, which is your declared value. The declared value of a commercial shipment is the retail price at which you sold the item or items to your customer.

There are different tools that can help you calculate the declared value of a shipment while filling out an international shipping label. For example, calculating the declared value of your international mailpiece with PostageMaker is as easy as ABC: all you need to do is enter the names, quantity and value of each individual item you’re shipping, and the total value of the package will be calculated automatically based on the information you’ve entered.

To back up the declared value in case you need to claim reimbursement or have any problems with customs clearance, you should have proof of purchase or proof of value. Proof of purchase is evidence that you paid for the product or products in the package what you say you paid. It can be a retail receipt, a paid invoice, a printout of the online transaction, or a credit card billing statement.

Proof of value for commercial shipments is a commercial invoice that has a detailed description of the shipment, including the HS codes of the products. As we’ve already mentioned above, the customs authorities take undervaluation of goods very seriously, so it is crucial that you provide accurate information and have necessary documentation to back it up.

To sum it up, there is nothing particularly complicated about the declared value of international shipments, but it is important to understand how it is calculated and to calculate it accurately in order to avoid any problems with customs clearance and ensure that you get the reimbursement you’re entitled to in case your package gets damaged, lost, or stolen in transit.