FAQ

a. Donation Value
The commodities do have a true worth prior to donation, say when the commodity was in prime condition. It is on the high side is thusly used in income and financial statements. Often the values derive from the donor, but not necessarily. Often Missionary Expediters is not be given this value. AERDO may have guidelines for donation value.

b. Insurance Value
Since little out of pocket cash was paid out for these commodities, the exporter normally sets the insurance value to cover such expenses (like ocean freight, cargo handling, procurement, service fees, etc.). These expenses are rarely precise, and the exporter sets these values, though often we are asked to estimate the insurance value.

c. Export Value
There is the value on the "Shippers Export Declaration". U.S. Customs says this should be the "fair domestic appraised value", which is like, what can you sell it for in the marketplace. In the end, this value is rather subjective. By the time the commodity is readied for shipment, it is already, of course, designated for a donation, a free gift. In that sense, it is no longer worth the donation value. On the other hand, it is not worth $0.00. It is akin to salvage value, wherein, we are not really all that precise about all this.

d. Import Value
There is "customs value", which is the value presented to customs of the destination country. Customs always needs to have some sort of "invoice" or declaration of value for cargoes entering their country. We cannot say $0.00 and say it is a gift; that would cause Customs to "review" how something can be worth zero. So, we normally estimate a reasonable, low value, set for the purpose of getting it "rubber stamped" through customs without any further interrogation. We feel this approach is proper because the cargo, being free, is really not invoiced and really will not cause the destination country to pay out any hard foreign exchange. The customs import value invoice hopefully is just for the customs statistical and administrative work. If Customs charges a duty unexpectedly, this value provides a low basis therefor.

Though we recommend a low customs import value, sometimes the exporter wants a high customs import value. Okay, maybe it is to 'show off'. But in one case, the exporter explained that since the consignee was going to pay for the onward carriage, a high value was specified to allow the consignee to feel his expense was really 'worth it'. Jack's How to Plan Your Shipment booklet talks about very thing.  You can view it here.  See pages 7-8.

The consignee, or receiver, is the person responsible for receiving the container from the carrier (at its destination), clearing it through customs, and bringing it to where it needs to go from there.

A consignee should be familiar with local customs, reliable, and easy to contact. They should also be trustworthy, because the country your cargo is entering is recognizing the consignee as the official cargo owner.

Did you know that most insurance from your supplier, or shipping company, does not cover many types of common losses? How will it effect your company’s bottom line to lose the value of an entire shipment? Losses during transport occur daily. Cranes puncture containers, water makes its way in, and thieves get smarter faster than we can invent better locks and seals. Statistics show that an importer will be involved in 1 General Average,  case every 8 years.