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Glossary
Consignee
Glossary
Declared Value for Carriage
Definition
Declared Value for Carriage refers to the monetary value assigned to goods by the shipper during transportation. This value is crucial in determining the carrier's liability in case of loss or damage to the goods in transit. It establishes a cap on the carrier's liability and can influence transportation costs, affecting insurance premiums and freight charges.
Updates for 2024:
As of 2024, European customs authorities are increasingly scrutinizing declared values upon import, especially in high duty burden sectors like footwear, textiles, and e-commerce. This scrutiny aims to combat undervaluation fraud and recover customs duties.
— sennder Team
FAQ
The Declared Value for Carriage sets a limit on the carrier's liability for lost or damaged goods during transportation. If the goods are lost or damaged and their Declared Value for Carriage is lower than their actual value, the carrier's liability will be limited to the declared value.
The actual value of goods refers to their market value or the amount they are worth, while the Declared Value for Carriage is the value assigned by the shipper for the purpose of determining the carrier's liability during transportation. The declared value may be equal to, higher, or lower than the actual value, depending on the shipper's preference.
A higher Declared Value for Carriage can lead to increased transportation costs, as it may influence insurance premiums and freight charges. Carriers or insurers may charge higher rates to cover the potential liability associated with transporting goods with a higher declared value.
Example or usage in road freight logistics:
In Europe, a company shipping electronics worth €10,000 might declare a value for carriage of €8,000. This declaration limits the carrier's liability to €8,000 in case of damage or loss. If damage costs €6,000, the carrier covers the full cost. However, if the damage costs €12,000, the carrier's liability is limited to the declared value of €8,000.