What Is a Cargo Value Declaration Form
Interlink編集部What is a Cargo Value Declaration?
A Cargo Value Declaration is a document submitted by the shipper or cargo stakeholder to the general average adjuster when general average has been declared, stating the declared value of their cargo.
In English, it may be referred to as Cargo Value Declaration, Cargo Valuation Form, General Average Valuation Form, Valuation Form, or similar terms.
In general average, the general average contribution is calculated based on the declared values of the saved vessel, cargo, freight, and other interests. Therefore, the Cargo Value Declaration is an important document that shows at what value the cargo will participate in the general average apportionment.
In actual logistics practice, the Cargo Value Declaration is not a simple document that is completed by attaching the invoice alone. It needs to be prepared so that the general average adjuster can verify the declared value by confirming terms of sale, freight charges, insurance premiums, collect freight charges, the presence or absence of cargo damage, and consistency with the insured amount.
Scope Covered in This Article
This article organizes the role of the Cargo Value Declaration in the general average procedure, value verification, required documents, relationship with insurers, and practical handling for NVOCC and LCL consolidated cargo.
| Theme | Contents Covered in This Article | Contents Covered in Other Articles |
|---|---|---|
| Basics of the Cargo Value Declaration | Organized as a document that declares the cargo value which forms the basis for general average contribution calculations. | The overall purpose and mechanism of the general average system are covered in "What is General Average?" |
| Differences from General Average Bond and General Average Guarantee | Clarifies the different roles of value declaration, payment undertaking, and insurer guarantee. | Details on General Average Bonds, General Average Guarantees, and deposits are covered in dedicated articles. |
| Verification of Declared Value | Confirms invoice value, FOB, CFR, CIF terms, freight, insurance premiums, and collect freight. | Incoterms and ocean cargo marine insurance details are treated in separate articles. |
| When There Is Cargo Damage | Organizes responses based on whether the damage amount is confirmed, unconfirmed, or may be identified after unpacking. | Survey reports and cargo damage assessment are covered in cargo accident-related articles. |
| Relationship with Cargo Insurance | Checks consistency among insurance amounts, insured values, increased insurance amounts, and General Average Guarantees. | Insurance claim procedures and general average contribution insurance handling are covered in marine cargo insurance practice articles. |
| NVOCC and LCL Consolidated Cargo | Organizes differences regarding Master B/L, House B/L, multiple shippers, multiple invoices, and insurance subscription status. | NVOCC responsibilities and LCL consolidated cargo liability relationships are covered in separate articles. |
| Submission Management | Organizes management of submission destinations, deadlines, original copies, acceptability of PDFs, and later additional documentation. | The overall progress and final settlement by the general average adjuster are covered in a dedicated article. |
Role of the Cargo Value Declaration
The role of the Cargo Value Declaration is to present the cargo value used for calculating the general average contribution to the general average adjuster.
The general average contribution is not simply determined based on the quantity or weight of the cargo. It is apportioned among parties such as the owners of the vessel, cargo, and freight based on the value of the saved property.
| Item | Details | Practical Significance |
|---|---|---|
| Declarant | The shipper, cargo stakeholder, importer, consignee, etc. | The person who actually understands the cargo value should verify the declaration. |
| Submission Destination | The general average adjuster, shipping company, agent, etc. | Verify the submission destination stated in the guidance documents. |
| Purpose | To declare the cargo value which serves as the basis for calculating the general average contribution. | The declared value affects the calculation of contribution shares. |
| Related Documents | Invoice, Packing List, B/L, Freight Invoice, Insurance Policy, etc. | Used as supporting documents for the declared value. |
| Submission Timing | Often required after the general average declaration but before delivery of cargo. | Late submission may affect cargo delivery. |
Differences from General Average Bond and General Average Guarantee
While the Cargo Value Declaration, General Average Bond, and General Average Guarantee may all be submitted during the same general average procedure, they each serve different roles.
| Document Name | Prepared By | Role | Notes |
|---|---|---|---|
| Cargo Value Declaration | Shipper, cargo stakeholder, importer, etc. | Declares the cargo value which serves as the basis for calculating general average contributions. | Confirms not only invoice value but also freight, insurance, and terms of sale. |
| General Average Bond | Shipper, cargo stakeholder, consignee, etc. | Undertakes to pay the properly adjusted general average contribution. | Verification of the signatory’s authority is important. |
| General Average Guarantee | Cargo insurance company | Guarantees payment of the general average contribution. | This is not automatically issued even if insurance has been purchased. |
| General Average Cash Deposit | Shippers without insurance, etc. | Provides cash collateral as a substitute for a guarantee. | May be requested prior to cargo delivery. |
The Cargo Value Declaration is the shipper’s document declaring the value. The General Average Bond is an undertaking to pay, and the General Average Guarantee is a payment guarantee by the insurer.
Basic Concept of the Declared Value
Usually, the Cargo Value Declaration is based on the invoice value. However, when calculating the general average contribution, the cargo’s value at arrival or its CIF equivalent value may be used as a basis.
Therefore, for FOB or CFR terms, the invoice value alone may be insufficient, and freight and insurance premiums may need to be added and confirmed.
| Basic Formula | Concept | Reference Documents |
|---|---|---|
| FOB Value + Ocean Freight + Insurance Premium | This adjustment is to approximate the CIF value equivalent. | Invoice, Freight Invoice, Insurance Policy, Insurance Premium Details |
| CFR Value + Insurance Premium | Since CFR usually does not include insurance premiums, addition of insurance should be confirmed. | Invoice, Insurance Policy, Insurance Premium Details |
| CIF Value | This value is easier to use as a base since it includes cargo value, ocean freight, and insurance premium. | Invoice, Insurance Policy |
Which value should actually be declared can vary depending on the guidance from the general average adjuster, the B/L terms, confirmation from the insurance company, and whether there is any cargo damage. If uncertain, it is necessary to check with the general average adjuster or the insurance company.
Points to Check by Incoterms
The documents to verify vary depending on the Incoterms used for the cargo value declaration.
| Incoterms | Main Components Included in Invoice Value | Items Frequently Requiring Additional Confirmation | Documents to Obtain |
|---|---|---|---|
| FOB | Usually only cargo value is included. Ocean freight and insurance premiums are not included. | Handling of ocean freight, insurance premiums, and freight collect charges | Freight Invoice, Insurance Policy, Insurance Premium Details, Freight Quote |
| CFR | Usually includes cargo value and ocean freight. Insurance premiums are not included. | Insurance premiums, insured amount, insured value | Invoice, Insurance Policy, Insurance Premium Details |
| CIF | Usually includes cargo value, ocean freight, and insurance premiums. | Insured amount, consistency between invoice value and insurance policy | Invoice, Insurance Policy, Packing List |
| EXW, FCA, etc. | The costs included vary depending on contract terms. | Domestic costs, export costs, ocean freight, insurance premiums | Sales contract, Invoice, Freight documents, Insurance Policy |
| DAP, DDP, etc. | May include costs up to the destination. | Extent of costs to be included in the declared value | Sales contract, Invoice, Freight details, Insurance Policy |
Especially for FOB terms, if only the invoice value is declared, confirmation of ocean freight and insurance premiums may be requested later. The Cargo Value Declaration should be prepared after confirming the Incoterms.
Handling of Prepaid and Freight Collect Charges
The Cargo Value Declaration also requires confirming whether freight charges are prepaid or freight collect.
In cases of freight collect, the cargo owner bears the freight costs on the destination side, yet the invoice value may not include the freight charges. In such cases, the general average adjuster may request confirmation of the freight amount.
| Freight Terms | Relationship with Invoice Value | Points to Confirm at Declaration | Reference Documents |
|---|---|---|---|
| Freight Prepaid | In CFR or CIF, freight charges are often included in the invoice value. | Confirm whether freight charges are included in the invoice value. | Invoice, B/L, Freight Invoice |
| Freight Collect | In FOB or some transactions, freight charges are often not included in the invoice value. | May require confirmation to add ocean freight borne on destination side. | Freight Invoice, Arrival Notice, Freight Billing Statement |
| Unknown Freight | Cannot be determined from the invoice alone. | Check via B/L, Arrival Notice, freight forwarder invoices. | B/L, Arrival Notice, Invoices, Quotations |
Incorrect handling of freight collect charges could result in the general average adjuster requesting additional documentation, potentially delaying cargo delivery and settlement.
Consistency with Insurance Premium and Insured Amount
The Cargo Value Declaration may also require verifying consistency with the marine cargo insurance insured amount and insured value.
Whether the insured amount is based only on the invoice value or includes CIF value or increased insurance amount may affect the scope of coverage under the General Average Guarantee or the insurance company’s liability.
| Items to Check | Details to Confirm | Common Issues |
|---|---|---|
| Insured Amount | Amount insured stated on the insurance policy | If lower than the cargo value or CIF value, the uninsured portion may be problematic. |
| Insured Value | Which value is the basis under the insurance contract | It is necessary to confirm differences between invoice value, CIF value, and increased insured amount. |
| Insurance Premium | Whether insurance premiums should be added to the declared value | May require confirmation especially in CFR or FOB cases. |
| Increased Insured Amount | Whether additional coverage including profit and miscellaneous charges is insured | Confirmation is required on the declared value for general average adjustment and scope of insurance coverage. |
How to Prepare When Cargo Damage Is Present
After a general average incident, when cargo damage is found, it is important not only to submit the Cargo Value Declaration but also to verify the cargo’s arrival condition and damage amount.
If cargo damage is present, it must be determined whether the damage is a general average sacrifice loss, a particular average loss, or normal damage unrelated to general average. However, this judgment should not be made unilaterally by the cargo owner.
| Situation | Action When Preparing Declaration Form | Additional Documents Commonly Required |
|---|---|---|
| No Cargo Damage | Organize values based on Invoice, freight charges, and insurance premiums. | Invoice, Packing List, Insurance Policy |
| Cargo Damage Confirmed with Damage Amount Settled | Share details of damage and damage amount with the general average adjuster and insurance company. | Survey Report, Photos, Repair Estimates, Damage Details |
| Cargo Damage Confirmed but Damage Amount Not Settled | Notify that the amount is not yet settled and submit additional documents later. | Photos, Initial Inspection Records, Incident Notification to Insurance Company |
| Potential Damage Found After Unpacking | Record exterior condition, planned unpacking date, and inspection schedule. | Delivery Records, Inspection Records, Unpacking Photos |
Even if the damage amount is not yet settled at the time of submitting the Cargo Value Declaration, submission is generally not stopped. Instead, the situation is communicated to the general average adjuster or insurance company, and submission proceeds with additional documents submitted later.
Key Points to Check When Filling Out
| Item to Check | What to Check | Common Issues |
|---|---|---|
| Vessel Name and Voyage Number | Confirm it matches the General Average Declaration. | Sometimes information from a different vessel or voyage is incorrectly entered. |
| B/L Number | Confirm whether it is a Master B/L or House B/L. | Numbers may shift in NVOCC cases. |
| Invoice Number | Identify the Invoice that serves as the basis for the cargo value. | Sometimes only part of multiple invoices is recorded. |
| Cargo Details and Quantity | Confirm consistency with Invoice, Packing List, and B/L. | Discrepancies in quantity, weight, or product description can cause problems. |
| Valuation Terms | Check terms such as FOB, CFR, CIF, or others. | Additional freight or insurance premiums that should be included may be overlooked. |
| Freight | Confirm whether prepaid or collect, and whether included in the Invoice. | Forgetting to confirm adding collect freight charges may occur. |
| Insurance Premium / Insured Amount | Check consistency between the insurance policy and declared value. | Insufficient coverage amount or uninsured portions can cause issues later. |
| Cargo Damage | Confirm presence of damage and damage amount settlement status. | If damage is not yet settled and no communication is made, additional checks may be requested. |
| Submission Destination and Deadline | Confirm whether to submit to the general average adjuster, shipping company, or agent. | Submitting to the wrong destination can delay cargo release. |
Practical Workflow Until Submission
| Step | Actions | Notes |
|---|---|---|
| 1. Receive General Average Declaration | Confirm vessel name, voyage number, B/L number, and general average adjuster. | First confirm whether it concerns the subject cargo. |
| 2. Check Declaration Form Template | Confirm Valuation Form specified by the general average adjuster. | Using a custom form is not always acceptable. |
| 3. Confirm Valuation Terms | Check FOB, CFR, CIF, or other terms. | Do not base solely on the Invoice. |
| 4. Collect Value-Related Documents | Gather Invoice, Freight Invoice, Insurance Policy, and insurance premium details. | Especially important for FOB, CFR, or Freight Collect shipments. |
| 5. Organize CIF Equivalent Amount | When necessary, confirm adding cargo value, freight, and insurance premium. | Keep record of the calculation basis. |
| 6. Confirm Presence or Absence of Cargo Damage | Check exterior condition, unpacking, inspection, and Survey Report availability. | If damage is not settled, record that status. |
| 7. Prepare Declaration Form | Confirm value, cargo details, valuation terms, signer, and attached documents. | Avoid blanks or unexplained amounts. |
| 8. Submit With Relevant Documents | Submit with General Average Bond, General Average Guarantee, Invoice, etc. | Confirm destination, deadline, whether originals are needed, and if PDF submission is allowed. |
| 9. Follow-Up Contact | If cargo damage amounts or insurance responses are finalized later, notify the general average adjuster. | Continue keeping documentation after submission. |
Relationship With Marine Cargo Insurance
When marine cargo insurance is in place, the insurance company may issue a General Average Guarantee and later handle the confirmed general average contribution.
On the other hand, the Cargo Value Declaration is submitted by the shipper or cargo owner declaring the cargo value. Even if the insurance company provides a General Average Guarantee, it does not exempt the need to submit the Cargo Value Declaration.
The insurance company may verify the amounts declared in the Cargo Value Declaration, Invoice, B/L, insurance policy, freight documents, and damage details. Especially where coverage is insufficient or parts are uninsured, this may affect the General Average Guarantee or later contribution handling.
Notes on NVOCC and LCL Consolidated Cargo
In cases involving NVOCC or LCL consolidated cargo, preparation and submission of the Cargo Value Declaration can be complicated due to differences between Master B/L and House B/L, multiple shippers, multiple Invoices, and insurance status differences.
| Situation | Common Issues | Countermeasures | Reference Documents |
|---|---|---|---|
| Master B/L and House B/L differ | It becomes difficult to understand which B/L number the general average adjuster is requesting. | Check both Master B/L and House B/L. | Master B/L, House B/L, Shipping Company Notices |
| Multiple cargo owners consolidated in the same container | Each shipper has different cargo value and insurance coverage status. | Manage Invoice, insurance, and declaration documents by each shipper. | Invoices by shipper, Packing List, Insurance Policies |
| Documents from some shippers are delayed | This may affect CFS delivery and procedures with the general average adjuster. | Manage submission status with a tracking list. | Submission Tracking Sheet, CFS Notices, General Average Adjuster Notices |
| Mix of insured and uninsured shippers | Separates cargo proceeding with General Average Guarantees from those requiring a deposit. | Organize Cargo Value Declarations and insurance documents by shipper. | Insurance Policies, Uninsured Confirmation, Deposit Notices |
Scope of Involvement for Freight Forwarders and NVOCCs
Freight forwarders and NVOCCs are not in a position to determine the final amount of general average contribution or the legal validity of declared cargo values. However, they are deeply involved in collecting necessary documents, organizing the basis of value, managing submission status by shipper, and facilitating communication with general average adjusters and insurance companies.
| Category | What Support Can Be Provided | What Should Not Be Determined | Practical Measures |
|---|---|---|---|
| Verification of General Average Declaration | Share information such as the vessel name, voyage number, B/L number, and general average adjuster details with shippers. | Judgment on whether general average is valid or if the contribution amount is appropriate. | Accurately forward advisory documents and confirm submission deadlines. |
| Checking Declaration Form | Obtain the general average adjuster’s designated Valuation Form and guide shippers accordingly. | Assurance that unique forms will always be accepted. | Confirm designated forms, sample entries, and submission contacts. |
| Organizing Value Documentation | Collect Invoice, Freight Invoice, insurance policy, and insurance premium details. | Final determination of declared cargo value and legal evaluation. | List any missing documents by terms of sale. |
| Organizing Cargo Damage Documentation | Assist in obtaining photos, inspection records, and Survey Reports. | Determining whether the damage is general average sacrifice or particular average. | Share status updates with insurance companies and general average adjusters. |
| NVOCC and LCL Management | Manage B/L, Invoice, insurance status, and submission status by shipper. | Explain that all shippers use the same valuation basis and insurance approach. | Create shipper-specific management lists and track outstanding submissions. |
| Submission Management | Confirm submission destination, deadlines, need for originals, and acceptance of PDFs. | Definitively state that delayed submissions will not affect cargo release. | Keep records of submissions and receipt confirmations. |
Decision Checklist
| Situation to Verify | Who to Confirm With | Items to Check | Actions if Issues Arise |
|---|---|---|---|
| Upon receiving a General Average Declaration | Shipping company, general average adjuster, overseas agent | Vessel name, voyage number, B/L numbers, relevant cargo, submission deadlines | If cargo applicability is unclear, confirm with the general average adjuster or shipping company. |
| Upon receiving the Cargo Value Declaration form | General average adjuster, shipping company agent | Designated form, required fields, submission method, need for originals, PDF acceptance | Clarify any uncertainties and avoid independently altering the form. |
| When verifying Invoice value | Shipper, importer, customs broker | Invoice number, value, terms of sale, quantity, cargo details | Confirm any questions regarding multiple invoices or terms of sale with the shipper. |
| When checking freight and insurance premiums | Freight forwarder, insurance company, insurance broker | Freight prepaid/collect, Freight Invoice, insurance premiums, insured amounts | For FOB, CFR, or Freight Collect terms, obtain additional documentation. |
| If cargo damage is present or unresolved | Shipper, surveyor, insurance company, general average adjuster | Presence of damage, damage amount, Survey Report, photos, inspection plans | Inform that cargo damage is not yet confirmed and submit additional documents later. |
| When multiple shippers are involved in NVOCC or LCL consolidation | Shippers, NVOCC, CFS, insurance company | Invoices by shipper, House B/L, insurance coverage, submission status | Create shipper-specific management sheets and track submission delays. |
| Final check before submission | Shipper, insurance company, general average adjuster | Declared value, attached documents, signatories, submission contact, deadline | If documents are missing, include an explanation and confirm with the general average adjuster. |
Common Trouble Patterns
| Case | Common Issues | Documents to Check | Practical Response |
|---|---|---|---|
| Declared only Invoice value despite FOB terms | No confirmation of adding sea freight and insurance charges. | Freight Invoice, Insurance Policy, Insurance Premium Details | Check with the general average adjuster whether adding freight and insurance to FOB value is necessary. |
| Delay in declaration due to lack of Freight Collect freight documents | Pre-confirmation of how to handle collect freight was missing. | Arrival Notice, Freight Invoice, Forwarder's Invoice | Obtain freight documents to be borne at the destination side. |
| Received inquiry without stating presence or absence of cargo damage | Unorganized status of unpacking/inspection and existence of Survey Report. | Photos, Inspection Records, Survey Report, Damage Details | If damage is not yet confirmed, communicate that it remains unconfirmed. |
| Discrepancy between insurance policy amount and declared value | Insufficient confirmation of insured amount, CIF value, and additional insurance amount. | Insurance Policy, Invoice, Freight Documents, Insurance Premium Details | Confirm with insurance company and clarify if there are any uninsured parts. |
| Procedure halted after submitting only the General Average Bond | Cargo Value Declaration or General Average Guarantee has not been submitted. | General average adjuster’s instructions, list of submitted documents, submission records | Manage necessary documents as a complete set. |
| Late submission of some shippers' declaration forms in LCL | Unable to manage submission status by individual shipper. | House B/L, shipper-specific Invoice, Insurance Policy, Submission Management Sheet | Manage submission status of declaration forms, insurance, and invoices by each shipper. |
| Mismatch of Master B/L and House B/L numbers causing confirmation delays | B/L numbers requested by the general average adjuster do not match shipper-side documents. | Master B/L, House B/L, Shipping Company Notices, NVOCC Notices | List both numbers together and explain how they are linked to the cargo in question. |
Common Misunderstandings
| Misunderstanding | Correct Understanding | Practical Notes |
|---|---|---|
| Submitting a copy of the Invoice alone suffices as the Cargo Value Declaration | The Invoice is an important document, but terms of sale, freight, and insurance charges may need to be confirmed. | Additional documents will be checked under FOB, CFR, and Freight Collect terms. |
| No need to check anything if CIF terms are applied | Even under CIF terms, confirmation of the insurance amount, Invoice value, and existence of cargo damage is required. | Check consistency between insurance policy and Invoice. |
| Invoice value alone is sufficient even under FOB terms | Sea freight and insurance premiums may need to be added and confirmed. | Obtain Freight Invoice, Insurance Policy, and Insurance Premium Details. |
| Submitting the Cargo Value Declaration makes reporting cargo damage unnecessary | If cargo damage exists, a Survey Report and damage amount documents may need to be submitted separately. | Even when damage is unconfirmed, share the situation with the general average adjuster and insurance company. |
| The declared value automatically becomes the general average contribution amount | The declared value forms the basis for the contribution calculation and does not mean the full declared value must be paid. | Explain the difference between declared value and contribution amount to the shipper. |
| The General Average Guarantee from the insurance company makes the Cargo Value Declaration unnecessary | The General Average Guarantee and Cargo Value Declaration serve different roles and both may be required. | Manage the General Average Guarantee, General Average Bond, and Cargo Value Declaration separately. |
| Master B/L alone is sufficient even in NVOCC cases | Linking with House B/L, actual shipper, Invoice, and insurance coverage is necessary. | Check both Master B/L and House B/L. |
Points Forwarders and NVOCCs Should Confirm
| Item to Confirm | Details to Confirm | Contact / Counterparty |
|---|---|---|
| General Average Declaration | Confirm vessel, voyage number, B/L number, and general average adjuster. | Shipping company, general average adjuster, overseas agents |
| Declaration Form | Confirm the Valuation Form specified by the general average adjuster. | General average adjuster, shipping company agents |
| Invoice | Check Invoice number, cargo details, quantity, value, and terms of sale. | Shipper, importer, customs broker |
| Freight | Confirm whether freight is prepaid or collect and the freight amount. | Forwarder, shipping company, NVOCC, accounting |
| Insurance Premium / Insured Amount | Check insurance policy, premium, insured amount, and presence of any uninsured portions. | Insurance company, insurance agent, shipper |
| Cargo Damage | Confirm existence of damage, Survey Report, and damage amount confirmation status. | Shipper, surveyor, insurance company |
| Related Documents | Manage the General Average Bond, General Average Guarantee, and deposit notice as a set. | General average adjuster, insurance company, shipper |
| NVOCC Cases | Organize Master B/L, House B/L, and Invoices by actual shipper. | NVOCC, actual shipper, shipping company |
| LCL Consolidation | Manage declared values, insurance coverage, and submission status by individual shipper. | Shippers, NVOCC, CFS, insurance company |
| Submission Destination and Deadline | Confirm where and by when to submit to the general average adjuster, shipping company, or agents. | General average adjuster, shipping company agents |
Documents to Check in Practice
- General Average Declaration
- Cargo Value Declaration Form
- B/L and Terms & Conditions on the Back
- House B/L and Master B/L
- Invoice
- Packing List
- Freight Invoice
- Arrival Notice
- Insurance Policy or Certificate of Insurance
- Insurance Premium Details
- General Average Bond
- General Average Guarantee
- Information on General Average Deposit
- Survey Report
- Photos, Inspection Records, Damage Details
- Guidance Documents from the General Average Adjuster
Example 1: Handling CIF Equivalent Amounts for FOB Cargo
For example, consider imported cargo priced on FOB terms, where the Invoice value is USD 100,000, the ocean freight is USD 5,000, and the insurance premium is USD 300.
In this case, while the Invoice value alone is USD 100,000, when calculating the general average contribution, it is common to confirm the CIF equivalent value by adding ocean freight of USD 5,000 and insurance premium of USD 300 to the Invoice value, thereby using USD 105,300 as the base amount.
Which amount is actually declared depends on the form requirements of the general average adjuster, confirmation from the insurance company, B/L terms and conditions, and whether cargo damage has occurred, so it is important to document the basis for the calculation and verify it accordingly.
Example 2: Cases Where Freight Collect Documentation is Required
For FOB shipments with Freight Collect terms, the ocean freight may not be included in the Invoice. In such cases, it is necessary to confirm the ocean freight payable at the destination by checking the Arrival Notice and Freight Invoice.
If the Cargo Value Declaration is submitted without obtaining freight information, the general average adjuster may request additional confirmation, potentially delaying cargo release and later settlement procedures.
Example 3: Cases Where Cargo Damage is Not Yet Determined
After a general average incident, there may be visible signs of moisture damage on the cargo packaging, but the unpacking inspection has not been completed yet.
In such cases, rather than withholding submission of the Cargo Value Declaration, it is advisable to note that damage amount is not yet determined, that the unpacking inspection is scheduled, and to provide details about the insurance notification status. Survey reports or damage documentation can be submitted later as needed.
Points to Note
The Cargo Value Declaration is not merely a document for submitting a copy of the Invoice. It is a document that confirms the valuation terms, freight, insurance premiums, freight collect charges, insured amount, and presence or absence of cargo damage, enabling the general average adjuster to organize the contributory value.
Particular attention is required for FOB, CFR, Freight Collect, and LCL consolidated cargo, as supporting documentation for declared values tends to be insufficient.
Furthermore, submitting the Cargo Value Declaration does not negate the need for other documents such as the General Average Bond, General Average Guarantee, deposit instructions, or salvage guarantees. In general average procedures, the roles of each document must be clearly delineated and managed.
Summary
The Cargo Value Declaration is a document in which the shipper or cargo rights holder declares the cargo value to the general average adjuster to calculate the general average contribution.
While the General Average Bond is the shipper's payment undertaking and the General Average Guarantee is the insurer's payment guarantee, the Cargo Value Declaration serves as the value declaration on which the contribution calculation is based.
In actual logistics practice, it is essential to confirm not only Invoice values but also pricing terms such as FOB, CFR, CIF, whether freight is prepaid or collect, ocean freight, insurance premiums, insured amounts, and the presence or absence of cargo damage.
Freight forwarders and NVOCCs, upon receipt of a General Average Declaration, need to promptly organize and confirm submission deadlines and recipients for the Cargo Value Declaration, Invoice, B/L, Freight Invoice, insurance policy, Survey Report, General Average Bond, and General Average Guarantee.
