Declaring value when shipping international: important things to consider
Declared value is the amount of the goods imported. Declared value is the value of the goods while shipping internationally and especially by importing the goods from any country. The declared value is used in the customs clearance process, wherein the customs authorities check on your parcel and cross-check whether your declaration is correct or not. As the tax is levied on the declared value, and if something is wrong, then there are several charges levied.
Some general questions
1) Why declare value?
Declaration of the value of the goods imported is essential as the right declared value will help the customs authority to calculate the duties and taxes.
2) Which value is to be declared?
The declared value should always be the actual value of the goods paid. The proof of transaction of actual value will help you in various stages of international shipping.
3) Where to declare?
You should have the commercial invoice for the goods you are importing, and on that Commercial invoice, you should declare the actual value of the goods that’s the declared value.
4) What if provided wrong declared value?
If you provide the inaccurate value, then you will have to suffer a lot of delay in the process and fines also. The customs authority is strict in the customs clearance process, and it’s a genuine process there are lots of cross-checking done, if there is any inaccurate information provided then you have to provide the reason behind that inaccurate value hence having lots of delay in the process.
5) Which Value is to be declared?
The actual price of the goods purchased is the value to be declared as its proof which you have to show in the process of customs clearance.
6) Why do customs use a higher value than the actual declared value?
The customs use a higher value than the declared value because they generally include the cost of the shipment and the insurance as well. This value which is the declared cost plus the shipment value plus the insurance value is known as the CIF(cost, insurance, freight) value. Many people only use the actual cost of the goods but not the cost of the shipment and the insurance but the customer only considers the CIF (cost, insurance, freight) value. Also sometimes they increase the value when in case they feel that the shipment is declared wrong and it’s shown undervalued.
7)How to calculate the declared value?
The calculation of the declared value depends on two factors; The cost price and the retail price. The cost calculator.
The cost price -The cost price of the shipment is used when there is a shipment for personal use. For instance, if a person is importing goods then the cost at which he purchased the goods will be considered and used as a declared value.
The Retail Price- The retail price will be used in the case when there is an import of the goods which you indeed to sell the items. Customs use these value to calculate the taxes and duties which is used for the import procedure.
What is CIF value
CIF value stands for Cost, Insurance, and freight value. This is the actual paid price which is considered by the customs clearance authority while checking on the shipment. There is the price of goods delivered to an importing country before the payment of any import duties or other taxes on imports.
Customs declaration includes
The information which should have the following information in the declaration invoice and they
1. Value of individual items
2. Quantity of each item
3. Customs tariff code
4. The Country of origin
5. The country of import
6. The full description of the items ( including every minor detail)
International courier services for the proper shipment of the foods
Tons of courier companies in India will not only deliver your goods on time but also, help you in the customs clearance process. Some courier companies are Aramex international courier, DTDC courier service, DHL courier company, FedEx courier company, UPS courier service, Australia Post, Canada Post, Blue Dart courier service, and many others.
Some of the best services by these companies are
1. Door-to-door service
2. Express delivery or express courier
3. On-time delivery
4. Door pickup
5. Tracking facility
6. International cost charges are available on their website.
7. Good international courier rates.
Chennai is a city in the southern state of Tamilnadu, India. It’s very well known for its culture and trade practices. There are many known international courier services in Chennai. One of them is Deskmate international courier.
Deskmate courier service is famous for its services. They do have the best customer support, team. They also have a website where you will find the deskmate cost calculator through which you can calculate the cost of your courier.