FedEx Carriage Value vs Customs Value

Background

ShipWorks Support is sometimes asked why the Carriage Value is not reflecting the total value of the shipment on printed FedEx International labels. This article will address this question, discuss the difference between the FedEx Carriage Value vs. the actual Customs Value, and how to report the actual Carriage Value to FedEx when process FedEx International labels through ShipWorks.

First Things First

Let's take a look at the actual definitions of what Carriage Value and Customs Value are according to FedEx*. This information is taken directly from FedEx's Quick Reference page on Packaging International Shipments.

*https://www.fedex.com/us/grtt/pkg_info_intl.html

Carriage Value: The Carriage Value is the selling price or replacement cost of your shipment's contents, which is the maximum liability in connection with a shipment of that package including, but not limited to, any loss, damage, delay, misdelivery, nondelivery, misinformation, failure to provide information or misdelivery of information relating to the shipment.

Customs Value: The Customs Value is the true monetary value of your shipment. This value is used for customs clearance and may affect the transit time of your shipment. Customs Value is required for international shipments.

Let's now take a look at what the default Declared or Carriage Value is for a package shipped internationally with FedEx*. This information is taken directly from FedEx's International Terms and Conditions Page.

*http://www.fedex.com/us/service-guide/after-you-ship/terms/expr

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...our liability, our maximum liability for loss, damage or delay, or any claim with regard to any shipment moving to or from the U.S. is limited to US$100, US$9.07 per pound or US$20.00 per kilo, whichever is greater, unless you declare a higher value for carriage and pay a greater charge.

Q: Great, but what does all of that mean?

A: Good question. When you process an international shipment with ShipWorks and do not declare a value (Carriage Value) greater than $100, the maximum liability of $100 for the Carriage Value is assumed. So, in ShipWorks it looks like this:

Example: With the default Shipment Protection set as ShipWorks Insurance, the default value of $100 for the Carriage Value is assumed. (This is true whether or not you select to insure the package with ShipWorks Insurance).

Q: OK, but what if I need to cover the package for more than $100?

A: Option 1: You could insure your package using ShipWorks insurance by checking the ShipWorks Insurance checkbox and then verify that the Insured Value is correct. Remember, the Carriage Value on the printed label will still show $100 because the liability for the package is now covered by ShipWorks Insurance.

Option 2: You could also change the default Shipment Protection to FedEx Declared Value. Then, select this option when shipping your package, making sure that the Declared Value is entered correctly.

Fedex_Carriage_Value_vs._Customs_Value.pdf
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