Overview
This article explains how the FedEx® Declared Value works and how Pacejet uses it when rating and shipping FedEx packages. It covers:
How FedEx defines Declared Value
How it differs from insurance
How it impacts your FedEx rates
Default liability levels
The difference between Declared Value for carriage and Declared Value for customs
How this differs for domestic vs. international shipments
How to set and manage Declared Value in Pacejet
For the authoritative FedEx policy and latest limits, always refer to FedEx: https://www.fedex.com/en-us/shipping/declared-value.html
How FedEx Defines Declared Value
FedEx uses Declared Value to set its Maximum Liability if something goes wrong with a shipment (loss, damage, missed delivery, etc.).
FedEx callout: “The Declared Value of a shipment is FedEx’s maximum liability in connection with that shipment.”
Key points based on FedEx’s language:
Declared Value sets the maximum amount FedEx could be responsible for on that shipment.
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It is not a guarantee that FedEx will pay that amount. The shipper must still:
File a claim
Prove the shipment was lost or damaged
Prove FedEx was at fault
Prove the amount of the loss with documentation
Even when a claim is approved, FedEx limits liability to the repair cost, depreciated value, or replacement cost — whichever is less.
FedEx callout: Liability is limited to “the repair cost, its depreciated value, or its replacement cost — whichever is less.”
Declared Value vs. Insurance (and vs. Customs Value)
Declared Value is Not Shipping Insurance
A common misconception is that Declared Value = Insurance. FedEx is explicit that these are not the same thing.
FedEx callout: “Declared Value is not shipping insurance.”
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Declared Value
Increases FedEx’s maximum liability above the standard limit.
Affects the FedEx charges you see in Pacejet.
Does not automatically cover all types of loss or your shipping costs.
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Insurance
Is purchased separately (e.g., from a broker or insurance provider).
Can provide broader door-to-door protections depending on your policy (including shipping cost reimbursement).
Is independent of the number you enter as Declared Value.
FedEx callout: Declared Value and insurance are “completely independent” of each other.
Practical Implication
Setting a higher Declared Value in Pacejet adjusts FedEx’s liability and charges. It does not by itself mean your shipment is insured under a separate insurance policy.
Declared Value for Carriage vs. Declared Value for Customs
FedEx uses the term Declared Value for Carriage to describe the value that sets its maximum liability for a shipment. For international shipments, there is a second, distinct concept: Declared Value for Customs.
Declared Value for Carriage (Carrier Liability)
Used by FedEx to determine the maximum amount FedEx could be responsible for if a shipment is lost or damaged.
Optional on both domestic and international shipments.
Drives FedEx liability and any Declared Value-related surcharges in the rate you see in Pacejet.
This is what your Pacejet Declared Value field is intended to control.
Declared Value for Customs (Regulatory/Import Value)
Required for most international shipments.
Used by customs authorities, not by FedEx, to determine duties, taxes, and clearance requirements.
FedEx guidance: The Declared Value for customs is the selling price or fair market value of the contents and is used to assess duties and taxes.
Typically comes from your commercial invoice / line-item values (e.g., order prices) rather than the shipment-level Declared Value for carriage.
Key point:
For domestic U.S. shipments, there is only Declared Value for Carriage – it affects carrier liability and related fees, not customs.
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For international shipments, you effectively have two values in play:
Declared Value for Carriage → FedEx liability and declared-value-related fees
Declared Value for Customs → Duties, taxes, and customs clearance
Default Liability and How Declared Value Affects FedEx Rates
FedEx includes a default liability level on most shipments.
FedEx callout: FedEx provides a “standard $100 limit of liability” and the “first $100 of value” is included.
For domestic U.S. shipments, this liability is based solely on Declared Value for Carriage.
For international shipments, FedEx still uses Declared Value for Carriage for liability, but customs authorities separately use your Declared Value for Customs (customs value) to determine duties and taxes. Those customs amounts are often based on your item or invoice values, not the shipment-level Declared Value for carriage.
Default (No Declared Value Entered)
If you do not specify a higher Declared Value:
FedEx’s liability is typically capped at $100 per shipment, subject to their terms.
The first $100 of value is included in the base transportation rate.
There is no additional Declared Value fee beyond your normal shipping charges.
When you Set a Higher Declared Value
If you enter a Declared Value above $100:
FedEx applies incremental Declared Value charges based on the amount over $100 and the service used.
These charges are included in the rate that Pacejet retrieves from FedEx.
If you change the Declared Value in Pacejet and re-rate the shipment, you should expect the FedEx charge to go up or down accordingly.
How to Choose an Appropriate Declared Value
FedEx expects the Declared Value to reflect a realistic, supportable value of the goods being shipped. You must be able to prove the value if you file a claim.
Common Approaches
Cost-based: Your acquisition or manufacturing cost.
Selling price: The customer invoice amount, possibly excluding non-recoverable costs.
Replacement or repair cost: What it would cost you to repair or replace the item.
Good Practices
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Use a value you can document:
Invoices, purchase orders, transfer pricing records
Appraisals (for high-value or specialized items)
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Follow your organization’s internal policy:
Decide centrally whether to use cost, price, or another standard basis.
Define when higher Declared Value is required (e.g., orders above $X).
Maximums, Exclusions, and “null and void” Values
FedEx sets maximum Declared Values depending on:
The FedEx service (e.g., Ground vs. Express)
The commodity type (e.g., electronics, jewelry, prohibited items)
If you attempt to declare more than FedEx allows for that shipment:
FedEx callout: Declared Values above the maximum may be considered “null and void.”
In other words:
You might still be rated and see a value in the system.
FedEx can treat any amount above the allowed maximum as not valid if a claim is filed.
FedEx also has items that are partially or fully excluded (e.g., certain cash, tobacco, or prohibited contents). Refer to FedEx for the current list and conditions:
https://www.fedex.com/en-us/shipping/declared-value.html
How Declared Value Works in Pacejet with FedEx
Pacejet captures the Declared value you enter and passes it to FedEx as part of the rating and shipping request. This section explains where to find that field and how it behaves.
Setting Declared Value for Domestic Shipments
Enter Declared Value for domestic shipments as follows:
Open your shipment on the Rate & Ship page.
Go to the Package Information section.
Locate the Declared Value field on each package record.
Pacejet for Domestic shipment, FedEx Ground cost of $54.12 where the “Declared Value” field has $100 for package 1 and $100 for package 2:
Pacejet for Domestic shipment, FedEx Ground cost of $64.02, where the “Declared Value” field has $120 for package 1 and $150 for package 2:
A few key points about Domestic shipments and the Declared Value field in the above examples:
For Domestic shipments, the package-level values total up to the total shipment value for Declared Value for Carriage.
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When a value from $0 to $100 is used for Declared Value, FedEx rates do not increase (liability cost included in base rate).
Recent FedEx publications have shown $100 liability included.
Recent FedEx publications have shown a per-$100 increment fee (e.g., ~$1.15 per $100 over $100, varies).
These fees will likely change on a yearly basis as part of general rate increases or per your contract.
When a value above $100 is used for Declared Value, FedEx rates increase for the additional liability coverage.
Declared Value is not automatically set for domestic shipments, although Shipment Rules can alter this behavior.
International fields like Customs Value or Commodity/International records are not used for domestic shipments.
Using Declared Value is Not the Same as Carrier Insurance
As noted in earlier sections, Declared Value is not the same as insured value. As an additional clarification, if you attempt to use the Carrier Insurance shipment services with FedEx, no rates will be returned, and the shipment trace will log an entry of "Carrier FedEx excluded due to INSURANCE shipment service not found".
Attempting to use Carrier Insurance with FedEx results in note rates and a notification log in the shipment trace:
Setting Declared Value for Export Shipments
Enter Declared Value for export shipments as follows:
Open your shipment on the Rate & Ship page.
Go to the Package Information section.
Locate the Declared Value field on each package record.
Notice the pre-calculated values inserted by Pacejet for Declared Value, Commodity Unit Price, and Customs Value.
This is typical for most ERP integrations, where individual item prices are transmitted with your shipments.
Pacejet for Export shipment, FedEx International Priority cost of $519.95 where the “Declared Value” field has $50 and Customs Value is $50:
Pacejet for Export shipment, Attempting to Set Declared Value to $100 where Customs Value is $50. No rates displayed, Click Trace for Error:
Pacejet for Export shipment, FedEx International Priority cost of $519.95 where the “Declared Value” field has $190 and Customs Value is $200:
A few key points about Export shipments and the Declared Value field in the above examples:
For Export shipments, the package-level values total up to the total shipment value for Declared Value for Carriage.
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When a value from $0 to $100 is used for Declared Value, FedEx rates do not increase (liability cost included in base rate).
Recent FedEx publications have shown $100 liability included for international and domestic shipments.
Recent FedEx publications have shown that increases above $100 are not as transparent and can vary by service.
These fees will likely change on a yearly basis as part of general rate increases or per your contract.
Declared Value is automatically calculated for international shipments, although Shipment Rules can alter this behavior.
The Customs Value field in Pacejet is used as the Declared Value for Customs for export shipments and paperwork.
The Customs Value field in Pacejet can be altered manually or through Shipment Rules.
FedEx does not allow a Declared Value (for Carriage) to exceed the Declared Value (For Customs).
Recommended Workflow for Users
To help ensure consistent and defensible use of Declared Value:
Determine value basis: Confirm whether your organization uses cost, selling price, or another basis.
Check order documentation: Verify the amount in your ERP/WMS or sales system (invoice, order total, etc.).
Confirm FedEx rules for high-value shipments: For high-value or special commodities, review FedEx’s limits and exclusions.
Ensure your desired value does not exceed FedEx’s maximum for that service/commodity.Set or confirm Declared Value in Pacejet: Confirm that the Declared Value field reflects your policy and documentation.
Rate and review charges in Pacejet: Rate or re-rate the shipment to see the Incremental Cost from the Declared Value.
Decide whether that cost is acceptable relative to the shipment’s risk profile.
Special Considerations for International Shipments
For international shipments, you need to consider both carrier liability and Customs Value:
Confirm Customs Value basis: Make sure your Commercial Invoice / Customs Value reflects the selling price or fair market value of the goods, consistent with your compliance and tax guidance.
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Separate liability vs. customs decisions:
Decide how much carrier liability you want (Declared Value for Carriage) based on your risk tolerance.
Decide if you want shipping insurance since this is a completely separate concept from carrier liability
Independently ensure your Customs Value is accurate for duties and taxes – do not understate it just to reduce costs.
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Understand financial impact:
Declared Value for Carriage affects potential claim reimbursement and any Declared Value fees in FedEx’s rate.
Declared Value for Customs affects landed cost (duties, taxes, brokerage) and compliance risk (audits, delays, fines).
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Check configuration in Pacejet:
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Work with your Pacejet administrator to confirm:
What are the default calculations for Declared Value for Carriage on Domestic shipments?
What are the default calculations for Declared Value for Carriage on Export shipments?
Which field(s) determine the Customs Value sent on international documents and electronic data?
Do you want or need any Shipment Rules or other configuration to change Declared Value?
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FAQ
References
FedEx Declared Value & Limits of Liability for Shipments: https://www.fedex.com/en-us/shipping/declared-value.html
Use this article to understand how Declared Value flows through Pacejet into your FedEx rates and, for international shipments, how it differs from Customs Value. For legal terms, caps, and exclusions, always rely on the current FedEx documentation.