Declared Value for Carriage
the value indicated by the sender on the air waybill, constituting the utmost amount of FedEx liability for the shipment of the package.
How Declared Value for Carriage Works
Declared value for carriage is administered on the air waybill, under the liability of FedEx. FedEx's declared value is taken into account due to the insured value of the shipment. However, it doesn't offer coverage for you. If there's no value declared, then the utmost liability is $100.
If your package isn't expensive, this is often adequate. However, if your package is of upper value, then you should set the FedEx value declaration to an amount that is sufficient just in case of package loss or damage. Note that FedEx doesn't give liability insurance, but the sender can make an additional payment or charge on the declared value above the limits. You need to know how to declare value with FedEx if you're planning on shipping with the courier.
Since the courier doesn't automatically offer coverage, they encourage you to use insurance agents or brokers of insurance companies to urge coverage of your package. If your shipment has a package worth of $500 declared, FedEx can restrict its release without a signature even after authorization. The total cost for the main $200 of the declared value is free, but if your value declaration is over this, you have to pay a lesser amount of $300.
Example of Declared Value for Carriage
Let's assume you processed international goods to be shipped, and there is no declaration of a carriage value greater than $200. With Shipworks Insurance, it will appear like you set a default shipment protection as ShipWorks. Then, the default declared value of carriage remains assumed to be $200, whether or not you decide to insure the package with ShipWorks Insurance. So, the Carriage Value that's printed out on a label will still show $200 because ShipWorks Insurance now covers the liability for the package.
However, the maximum declared value for customs and carriage is restricted and will vary per location. Also, the utmost declared value for customs and carriage for the contents of a FedEx envelope or FedEx pak, no matter the destination, is $200 per shipment or $1.07 per pound, whichever is bigger. Goods with a worth of either the actual or declared value that still exceeds these amounts will not be be shipped using a FedEx envelope nor FedEx pak.
The sender should refer to the FedEx rate sheets in effect at the time of shipment or call FedEx for evidence of the declared value limits. Therefore, the greater the value declared, the greater the liability of loss on FedEx's part if any contents or goods are damaged, but it cannot be more than the original value.
Significance of Declared Value for Carriage
Below is some of the significance of declared value for carriage:
The most important aspect of declared value for carriage is linked with FedEx, the party with maximum liability concerning the shipment of that package. It includes but is not limited to any loss, damage, delay, misdelivery, failure to supply information, or misdelivery of data concerning the shipment.
The declared value is realized on the imported goods by the importer. You say the worth of the products for clearance at the port of entry. This value determines the quantity of duty to be paid on the imported goods.
In case of any loss or damage to the shipment during transport, the carrier is susceptible to compensate the shipper on the idea of the declared value.
The value for carriage is additionally limited depending on the goods and location of the shipment.
The declared value for carriage cannot supersede the declared value for customs and vice versa.
- The sender handles the shipment exposure and risk of any loss in more than the declared value for carriage.
Declared Value for Carriage vs. Customs Value
The declared value for carriage refers to the price or cost of your shipping contents, which is the maximum liability in respect to the content of the goods added. It is not limited to any loss, damage, delay, misdelivery, nondelivery, misinformation, or failure to supply information or misdelivery of data concerning the shipment. In other words, declared value means the total price the product company billed to the carrier. It is a statement to FedEx for increasing FedEx's limit of liability.
The customs value is the actual cost of your shipment. This value is employed for customs clearance and will affect the transit time of your shipment. You require customs value for international shipments. Hence, declared value for customs is a market price tag on your goods and services as a declaration to customs to determine applicable duties and taxes.