Declared Value When Shipping to the UK: A Guide for Canadian Exporters

UK Customs (HMRC) has increased enforcement of declared values for parcels shipped from Canada. Accurate value declarations are required for all imports, whether commercial or personal. Incorrect or unsupported values can cause clearance delays, fines, or reassessments.

At Jet Worldwide, we advise Canadian shippers to keep supporting documents (invoices, receipts, export declarations) to validate declared values. Our team works closely with UK Customs and carrier partners to ensure compliance and minimize risks.

In this post, we explain UK declared value rules, CIF valuation, UK-Canada free trade (CUKTCA), VAT collection for e-commerce, and best practices for Canadian exporters.

The 3 Elements That Determine UK Import Duty

1. Declared Value (focus of this guide)
2. Origin of Goods (rules of origin & free trade agreements)
3. Customs Tariff Classification (HS Code)

Takeaway: Accurate value declaration is as important as providing the correct HS code and origin information.

Declared Value and UK Free Trade Agreement

Canada and the UK maintain a free trade agreement under the Canada–UK Trade Continuity Agreement (CUKTCA), a successor to CETA. This provides duty-free access for qualifying goods, but only when:

• A correct certificate of origin is supplied
• The declared value is accurate and documented

Explore Canada’s Free Trade Agreements

Understanding Declared Value Methods

1. Transaction Value (Most Common)

The price actually paid or payable for the goods, adjusted to include shipping and insurance where applicable. Example:

• Goods cost: CAD $1,000
• Shipping + insurance: CAD $290
• Declared value = CAD $1,290

2. Alternatives (if no transaction value)

• Value of identical goods
• Value of similar goods
• Deductive value method
• Computed value method
• Fallback method

Tip: UK Customs uses these methods in hierarchical order. For complex cases, consult a customs broker.

What Is CIF Value?

CIF = Cost + Insurance + Freight. HMRC typically assesses duty based on CIF value.

Example: A CAD $1,000 good with CAD $200 freight + CAD $50 insurance → CIF value = CAD $1,250.

Read more: CIF Valuation Explained

Declared Value for E-Commerce Orders (VAT)

For online orders to UK customers via Shopify, eBay, Amazon, and other platforms:

• ≤ £135 (≈ CAD $220): Marketplace/platform collects VAT at checkout
• > £135: VAT & duty collected from the importer (recipient) at clearance

⚠️ Important: VAT applies to the value of goods only (excluding shipping/insurance).

UK Government guidance on VAT for online sales

Sample Compliance Checklist for Canadian Shippers

• ✅ Keep all invoices and payment proof
• ✅ Declare CIF value (goods + insurance + freight)
• ✅ Use correct HS codes (see HS Codes guide)
• ✅ Include UK VAT registration for B2B shipments
• ✅ Verify if goods qualify for duty-free import under CUKTCA
• ✅ Use clear Incoterms (DDP/DDU)

FAQs: Declared Value for UK Imports

Shipping Between Canada and the UK with Jet Worldwide

• Parcel, pallet, and e-commerce shipping solutions
• Low-cost tracked options for UK-bound orders
• Expert advice on customs, VAT, and free trade agreements