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Fair Market Value (FMV) for International Customs Clearance

Updating the Fair Market Value on international orders for customs clearance.

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Written by Maureen

Effective November 10, 2026, DCL uses a set order of sources to determine the customs value for every shipment that needs one. Fair market value (FMV) on file is the primary source.

Customs authorities now review declared value much more closely, and carriers require a valid customs value before they will create a shipping label. Keeping an FMV on file for each item in your catalog lets your shipments clear customs smoothly and move without manual steps or delays.

What Is Fair Market Value?

Fair market value is the price an item would reasonably sell for on its own, without any promotion, discount, or bundle pricing.

The price on an ecommerce order is right for that sale, but it isn’t always an acceptable customs value. The value on the commercial invoice has to reflect what the goods are actually worth.

Why FMV Matters

Over the past year, customs authorities have tightened their review of declared values:

  • United States: The low-value de minimis exemption has ended. Shipments that used to clear without a duty assessment are now valued and assessed.

  • European Union: The EU is moving the same way with its own low-value threshold.

  • Result: A much larger share of outbound parcels is now examined on value.

An understated or $0 declaration can cause:

  • Clearance delays

  • Reassessment of duties and taxes

  • Penalties

  • The shipment being returned to sender

How DCL Sets the Customs Value

For each item on a shipment that needs a customs value, DCL uses the first valid value in this order:

Priority

Value Source

What Happens

1

FMV on file

This is the source of truth. It’s used whenever one is on file for the item.

2

Value on the sales order

Used only when there is no FMV on file.

3

No valid value (order value is $0 or blank)

The shipment can’t be created. DCL contacts you for a value, then saves the value you provide as the item’s FMV for future shipments.

Note: DCL warehouse staff can’t enter or estimate a customs value for you. The value has to come from you, as the owner of the goods.

Items Most Likely to Need an FMV

These items often come through on the order at a discounted price or at $0:

  • Free gifts with purchase

  • Promotional and bundled items

  • Samples

  • Inserts and marketing materials

  • Replacement or no-charge orders

If your catalog includes any of these and you ship internationally, make sure each one has an FMV on file.

What Happens When a Value Is Missing

If an order needs a customs value and there is no FMV on file and the order value is $0 or blank:

  1. The shipment isn’t created, and the order can’t ship yet.

  2. Your Account Manager contacts your designated FMV contact for a value.

  3. Once you provide the value, the order is released for fulfillment.

  4. The value is saved as the item’s FMV, so future orders for that item aren’t held.

DCL also monitors open orders throughout the day so missing values can be caught and resolved before orders reach the warehouse floor.

How to Update FMV

  • Provide FMVs for your catalog. If you haven’t provided FMVs for all of your items, or have added new items, send FMVs to your Account Manager.

  • Name an FMV contact. Tell us who should receive requests for missing values. This can be a person or a shared inbox.

  • Respond promptly to value requests. Orders that need a value can’t ship until we receive one.

Shipment Coverage

Applies to:

  • Every shipment where a customs value is required, including all international shipments

Does not apply to:

  • Shipments that don’t require a customs value

FAQs

  1. What is the difference between FMV and the price on my order? The order price is what your customer paid, including any discounts or promotions. FMV is what the item would reasonably sell for on its own. Customs requires the FMV.

  2. If an FMV is on file, will DCL use it even when my order shows a different price? Yes. The FMV on file is the source of truth for the customs value. The order value is used only when no FMV is on file.

  3. What value should I give for a free gift or sample? Give the price the item would reasonably sell for on its own. If it isn’t sold separately, use a reasonable value for comparable goods. Don’t use $0.

  4. Can DCL estimate the value for me? No. As the owner of the goods, you are responsible for the declared value. DCL warehouse staff can’t enter or estimate a customs value.

  5. What happens if I haven’t provided FMVs for my items? Your orders will use the order value. If that value is $0 or blank, the order won’t ship until you provide a value. To avoid delays, send your FMVs to your Account Manager or Customer Success representative now.

  6. How do I add or update an FMV? Contact your Account Manager or Customer Success representative with the item number and its fair market value.

  7. Does FMV change what DCL charges me for fulfillment or shipping? No. FMV is used for the customs declaration. It may affect the duties and taxes customs assesses, because those are based on declared value.

  8. Does this apply to domestic US shipments? Only when the shipment requires a customs value. Most domestic shipments don’t.

  9. Who will DCL contact when a value is missing? The FMV contact you designate. If you haven’t named one, let your Account Manager know who should receive these requests.

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