# Declared Value

Published July 15, 2020

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](/content/glossary-of-shipping-terms/cargo-insurance/index.html) does.

## Declared Value for Customs

For international shipments, declared value on the [commercial invoice](/content/glossary-of-shipping-terms/commercial-invoice/index.html) 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.