What does the term "declared value" mean on a customs form?

The term "declared value" on a customs form refers specifically to the monetary value that impacts the applicable duties owed when goods are imported. This value is vital because customs authorities use it to assess the appropriate duties and taxes that must be paid based on the value of the merchandise entering the country.

When goods are imported, the declared value provides a basis for calculating import duties, which are typically a percentage of the declared value. It is important to note that this value should reflect the transaction value, which is usually the price paid or payable for the goods, as well as any costs associated with getting the goods to the border, such as transportation and insurance.

Other interpretations of "declared value," such as those related to insurance, retail pricing, or production costs, do exist but do not specifically apply in the context of customs forms. While the declared value may influence factors like insurance, it is distinct from merely being an insurance valuation and is squarely focused on duty calculations in customs processes.