What is the difference between Transaction Value and CIF Value?

Transaction value is the actual price paid for the goods. CIF value (Cost, Insurance, and Freight) includes the transaction value plus the costs of shipping and insurance. Most customs authorities use the CIF value to calculate import duties.

What value should I declare for free shipping samples?

For free samples, you must declare the 'Fair Market Value' or the value of similar goods. Even if no money was exchanged, customs requires a realistic value for duty assessment. Do not declare a zero value.

What is the De Minimis value in shipping?

The De Minimis value is a country-specific threshold below which goods can be imported duty-free and tax-free. For example, the USA has a high de minimis threshold of $800.

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International Shipping Valuation Guide: Master Declared Value & CIF Rules

Timothy Byrnes

What is Declared Value? In international shipping, the declared value is the total monetary worth of your goods as stated on the customs invoice. It is the primary determinant for import duties and taxes. Accurate valuation prevents costly over-payments and protects you from significant legal fines or shipment seizures caused by under-declaration.

Quick Summary: This guide covers the three pillars of duty assessment, the hierarchy of valuation methods (Transactional vs. CIF), and how to handle non-commercial shipments like samples.

How declared value affects international shipping duty

Optimizing Value Declarations for International Shipping

Understanding valuation is critical for global logistics. It is one of the three core elements used by customs authorities to assess duty rates:

Value of the Goods: The monetary worth (detailed below).
Origin of the Goods: Where the product was manufactured.
HS Code: The specific Customs tariff classification.

Disclaimer: The information provided by Jet Worldwide is for general guidance. Always verify compliance with local customs regulations before shipping.

🚀 Strategy: Use AI to Simplify Your Shipping

Modern shippers use AI to ensure 100% compliance. You can use an AI assistant (like Gemini) to help calculate your CIF Value instantly.

Try this prompt:

"I am shipping [ITEM] from [COUNTRY] to [COUNTRY]. The sale price is $[AMOUNT], shipping is $[AMOUNT], and insurance is $[AMOUNT]. Based on CIF rules, what is my total Declared Value for customs?"

Tip: AI can also help you find the correct HS Code by describing your product in detail.

What value declaration is correct for international shipments?

The gold standard is the Transaction Value: the actual price paid or payable for the goods. If you sold an item for $400 (including shipping), declare $400 and specify it as the "CIF Value."

Expert Insight: When shipping free samples or gifts where no transaction exists, you must assign a "Fair Market Value" based on similar goods. Never declare "$0," as this triggers an automatic customs flag.

Does a high value increase shipping costs?

While the value for customs doesn't change the base freight rate, it directly impacts insurance premiums (usually a percentage of the declared value).

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Why Customs might "up-value" your shipment

If the term "CIF Value" is missing, customs officials may use a formula to add estimated transport and insurance costs to your invoice value. This results in higher duty fees than expected. Always be explicit on your paperwork.

Primary Methods for Customs Valuation

When the Transaction Value isn't applicable, the World Customs Organization (WCO) mandates a specific hierarchy of methods:

Identical Goods: Value based on the same items sold to the same country.
Similar Goods: Value based on goods with similar characteristics.
Deductive Value: Working backward from the resale price in the import country.
Computed Value: Sum of production costs, profit, and general expenses.
Fall-back Method: A flexible application of the previous methods.

Hierarchy of international shipping valuation methods

Special Note: US Customs vs. The World

Unlike most countries that use CIF (Cost, Insurance, Freight), US Customs typically uses the FOB (Free on Board) value—which only considers the cost of the goods themselves. Understanding this distinction can save you 15-20% on US import costs.