Guide to Declared Value in Customs: The Do's and Don'ts

How to Determine Declared Value

The most common method is the transaction value, which is the price actually paid or payable for the goods when sold for export to the United States. This includes the cost of the goods plus any selling commissions, assists, royalties, or license fees.

If there's no transaction (e.g., the goods are a gift or promotional items), you should declare the fair market value — the price at which the goods would be sold in an open market under normal conditions.

If the transaction value cannot be determined, CBP allows for alternative methods including transaction value of identical merchandise, similar merchandise, deductive value, computed value, and the fallback method.

Best Practices for Declaring Value

Always declare the true value to avoid penalties. Inaccurate declarations can lead to fines, seizure of goods, or other legal issues. Keep all invoices, receipts, and records that support the declared value.

When in doubt, consult a customs broker or legal expert who specializes in import regulations.

Things to Avoid

Under-valuation — declaring a lower value than the actual worth to reduce duties — is illegal and considered fraud. Over-valuation can lead to unnecessary duties and may raise suspicions of money laundering.

Even if goods were obtained for free, you cannot declare a value of $0. CBP requires that you declare the fair market value of the items. This ensures that duties and taxes are assessed appropriately.