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Declaring the correct customs value is critical for ensuring smooth and compliant cross-border operations. Whether you’re shipping from the US to Mexico or vice versa, missteps in valuation can lead to serious legal and financial consequences. In this article, we break down the most common mistakes companies make when declaring customs values—and how you can avoid them.

1. Declaring a Lower Value to Save on Duties

Underreporting a shipment’s value to pay fewer duties might seem tempting, but it’s illegal. Customs authorities in both countries can impose fines, seize your goods, or even revoke your import/export privileges.

2. Omitting Freight or Insurance Costs

In many cases, the customs value should include costs like freight and insurance. Failing to include them could be flagged during an audit and lead to a reassessment and penalties.

3. Using an Incorrect Currency Conversion

When shipping internationally, it’s important to declare values in the correct local currency. Not using the official customs exchange rate can distort your declared value.

4. Not Updating Invoice Values After Discounts or Returns

If your transaction involves rebates, returns, or post-sale discounts, the customs value may need to be adjusted. Many shippers fail to update this in time, risking inconsistencies with customs declarations.

5. Failing to Provide Supporting Documentation

Customs officials may ask for contracts, invoices, or proof of payment. Being unable to provide these can delay your shipment or result in fines.

How Novic Logistics Helps You Stay Compliant

At Novic Logistics, we help our clients avoid costly valuation mistakes by offering expert customs brokerage and documentation support. Our team ensures every value declared is accurate, consistent, and fully supported—helping you clear customs quickly and without surprises.

Customs compliance starts with proper valuation. Make sure you’re doing it right the first time.