Customs use the product value to clear your goods and determine the duties and taxes. That's why it's important to state it clearly on the paperwork and ensure it's correct. Bear in mind, that a product may be assigned different values in different situations. It's important to understand the differences and declare the right amount on your customs paperwork.
What is the declared value?
It’s the transaction value. This is usually the amount paid for the items being shipped. Say you’re shipping two pairs of shoes each valued at $160, the value would be $320.
What's the difference between commercial value, wholesale value, and cost price?
Commercial or retail value is the price an end buyer pays for a product. With B2C shipments, it'll also usually be the declared value.
Wholesale value is the price paid for a single item when purchasing in bulk. It's also what it would cost the seller to replace a damaged or lost product. When products have been purchased for a wholesale price, it will also be their declared value.
Cost price is how much it costs the producer to make the item. If customs don't think the declared value is correct and have no other way to asses it, they will use the cost price to calculate the product's value and duties.
Which value should I declare on my commercial invoice?
You should always declare the actual price paid for the goods purchased. Bear in mind, that undervaluation (declaring fake value) is the most common reason for customs issues, so make sure to always declare the actual value, and be prepared to provide customs authorities with proof of transaction.
What is the value used for?
Customs use it to clear your goods and determine the duties and taxes.
Where do I state it?
On the shipment data entry / booking form. UrShipper will later use the details you provided to generate the Commercial Invoice (CI) for your shipment.
What happens if I provide an incorrect/fake goods value?
Often people declare a lower value on the customs invoice to reduce the import tax and duty. If customs is suspicious of the valuation in your paperwork, often when your shipment arrives in the destination country, the customs officer will hold the package and ask the receiver to provide proof of payment. Or, they will open your package to inspect the goods, then check on their database or on your website to make sure the item's value declared in the shipping document matches the actual value of the item in the market.
Undervaluation of goods can be taken very seriously by the customs authorities and can result in a fine, goods being seized, or at worst: customs rejecting the entry of the shipment and then returning the package to the sender (under sender’s expenses). So to avoid customs delays and potential issues, please be honest with your paperwork!
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