What’s a declared value?

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Declared value is the value of the contents of a shipment disclosed by the shipper, owner, or authorized agent. Operators can set reference declared value limits that restrict their liability unless customers explicitly declare a higher value. If shipments are lost, stolen or damaged, the shipper’s compensation obligations are based on value. It can also play a role in rates and other fees, as well as shipping insurance. In some cases, nations may deny entry to packages above a certain value without prior agreement.

Customers can base the declared value of the contents of a shipment on the market price, which is the expected cost of the items. For insurance purposes, they may also consider the costs associated with replacement, including the cost of delays when products do not arrive on time. With some items, this process can be simple, as the item can be something bought and sold on the open market that can be easily replaced. Artwork and other unique items may require special appraisal.

The sender will only accept responsibility for the declared value of a package. If the owner or sender does not declare a value, it uses the default limits of liability. In case of loss, theft and other problems, customers can only receive compensation up to these limits. For higher value packages, a declaration is required, and individuals may have to pay extra for insurance and special handling. Refusing to declare value may save money on these expenses, but it will make replacement more difficult if something happens.

Values ​​can be written to the shipment package to make that information available to handlers. Insured packages may carry special badges to alert carriers and handlers, who may need to scan packages in transit to create a tracking record. Such packages are handled with special care to reduce the risk of liability and to ensure that, in the event of a problem, the shipment route can be traced. A business may find, for example, that a package went missing between two sorting centers, helping them pinpoint the possible location and determine what happened.

Domestically, the declared value does not usually create problems with shipping. Internationally, however, it can be a problem. Packages over a certain value may be handled differently at customs. Recipients may be charged a higher fee and in some cases the package may be denied entry. It is often wise to check policies before completing a declared value, to reduce the risk of a package becoming entangled in transit.

Smart Asset.

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