What Does “Value for Customs Purposes Only, No Commercial Value” Mean?

If a shipment is marked “value for customs purposes only, no commercial value”, it usually means the item is being declared for customs paperwork and valuation purposes, but it is not being sent as a normal sale with a commercial invoice price. In plain English: the sender is telling customs that the goods are not sold in the usual commercial sense, even though customs may still need a value to assess the shipment.

That wording is commonly used on paperwork for gifts, samples, personal effects, replacements, repairs, and other non-commercial movements where a sale price is not the right way to describe the shipment. It does not automatically mean the parcel will be duty-free, tax-free, or free of other charges.

In practice, customs can still ask for documentation, assess duties or taxes, or apply its own valuation rules depending on the destination and the nature of the goods. The phrase is a documentation statement, not a guaranteed exemption.

What the phrase means and when it is used

The wording tells the carrier and customs authority that the shipment is being described for administrative and customs valuation purposes, but that there is no normal commercial sale value to declare. It is often seen on pro forma invoices, packing lists, shipping declarations, or other non-commercial paperwork.

Common situations where this wording may appear include:

• Gifts sent from one person to another
• Samples sent for inspection, testing, or review
• Personal effects moving with an individual
• Not for resale items
• Repairs or replacements where the shipment is not a standard sale transaction

The key point is that the wording helps explain the nature of the shipment. It does not, by itself, decide whether the package clears customs without charges or paperwork.

If you are unsure how this fits into invoice documentation, it may help to review the difference between a commercial and non-commercial shipment in our guide to commercial invoice basics.

Customs value vs. commercial value

Commercial value is the value in a normal sale context: the price paid or payable for the goods in a genuine commercial transaction. In shipping, that is the price you would normally expect to appear on a commercial invoice when goods are sold.

Customs value is different. It is the value customs uses to work out duty and, in some systems, trade statistics. Customs value is often based on the transaction price, but it can also be determined under other valuation rules depending on the shipment facts and the destination’s customs system.

That means two things can be true at once:

• A shipment may have no commercial value because it is not a sale.
• The same shipment may still require a customs value for declaration, assessment, or statistical purposes.

For example, the WTO explains that customs valuation is generally based on the actual price of the goods, subject to the valuation rules that apply. The Canadian customs valuation handbook also notes that goods received free of charge, such as gifts or free samples, still fit into the valuation framework rather than disappearing from it altogether. You can read more in the WTO’s overview of customs valuation rules and the CBSA’s customs valuation handbook.

For U.S. importers, CBP’s guidance on commercial invoices also makes the same practical point: the value on the invoice should reflect the actual price paid for the goods in the relevant transaction, not a future resale value. See the CBP page on what value should be on the commercial invoice submitted to CBP.

What does commercial value mean in shipping?

In shipping terms, commercial value usually means the transaction value of the goods in an ordinary sale. If a buyer pays a supplier for the item, that paid amount is the commercial value that would normally be shown on the commercial invoice.

That is why the phrase “no commercial value” is used for gifts, samples, and other non-sale shipments. It signals that there is no standard sale price behind the movement of the goods. But it does not mean the shipment is invisible to customs.

What should I put for customs value in FedEx or a similar carrier form?

There is no universal one-line answer for every shipment. If a carrier form asks for customs value, you should not guess or automatically enter zero unless the carrier and customs rules for that specific shipment type and destination allow it.

The correct entry depends on:

• the type of shipment
• the destination country
• whether the goods are a gift, sample, replacement, repair, or sale
• the documentary basis for the shipment
• the carrier’s own form requirements

In other words, “no commercial value” on the paperwork is not the same thing as “no customs value required.” If you are unsure, follow the carrier’s instructions and the customs rules that apply to that shipment rather than entering an arbitrary figure.

How to document gifts and samples

For non-commercial shipments, a pro forma invoice is often more appropriate than a standard commercial invoice. A pro forma invoice is used to describe the goods and provide the details customs or the carrier needs, without presenting the shipment as a normal sale.

Useful wording can include terms such as:

• gift
• sample
• personal effects
• not for resale
• value for customs purposes only
• no commercial value

The exact wording should match the shipment and the destination’s documentation expectations. The point is to be accurate, not decorative. If the goods are a gift, say so. If they are samples, say so. If they are being sent free of charge, that should be clear too.

Even when there is no commercial sale, the paperwork still usually needs the core shipment details:

• clear item description
• quantity
• country of origin, where required
• declared value for customs purposes, if required
• any other fields the carrier or customs authority asks for

That is why a pro forma invoice is often the right document for this kind of shipment. It tells customs what the goods are without pretending they were sold in a normal commercial transaction.

When to use a pro forma invoice instead of a commercial invoice

Use a pro forma invoice when the shipment is non-commercial and you need to explain the goods for customs or transport purposes without issuing a standard sales invoice. A commercial invoice, by contrast, is normally used for a real sale transaction.

If you need a refresher on what belongs in a commercial invoice and why it matters, our article on commercial invoice basics breaks down the required fields and the common mistakes shippers make.

Will customs still charge duties or taxes?

Yes, customs can still charge duties, taxes, freight-related charges, or other fees even if the shipment is marked “value for customs purposes only, no commercial value.” The label does not guarantee free entry.

This is where many shippers get caught out. They assume that “no commercial value” means “no charges,” but that is not a safe assumption. Customs may still assess charges based on the customs value, the applicable threshold, exemptions, or special treatment rules in the destination country.

Some sellers’ policies also make this point very clearly: they may state that the recipient is responsible for duties, taxes, freight, or other fees even where the item is described as having no commercial value. That kind of wording is a reminder that valuation language and landed-cost responsibility are not the same thing.

If you are trying to estimate the likely outcome before shipping, it is worth reading about whether you’ll still owe customs duties.

What not to do when using this wording

This phrase should never be used to disguise a sale, reduce a real invoice value, or misstate the nature of the shipment. If the goods were sold, the paperwork should reflect that. If the item is a commercial shipment, do not relabel it as a gift or sample just because that sounds simpler.

Using the wrong document type or undervaluing the goods can create customs delays, reassessment, or other compliance problems. Customs authorities are interested in the real nature of the transaction, not only the wording on the outer label.

The safest approach is straightforward:

• describe the goods accurately
• use the correct document type
• state the right value basis
• do not rely on a slogan or shortcut phrase to override the facts

If you do not know the correct basis for valuation, check the applicable customs rules before shipping. The WTO’s customs valuation guidance and CBP’s invoice guidance both reinforce the principle that customs value is tied to the real transaction or the applicable valuation method, not a made-up figure.

Samples, extra compliance checks, and where Incoterms fit in

Samples are one of the most common reasons this wording appears on shipping documents. But sample status does not remove all import compliance obligations. A sample shipment may still need proper classification, origin details, and any product-specific documents required by the destination.

That means the phrase can help explain the shipment, but it does not replace other compliance steps. For example, a destination may still care about what the item is, where it came from, and whether any special import conditions apply. A shipment can have no commercial value and still need full or partial customs treatment.

Incoterms can also shape who is responsible for costs and paperwork. They do not decide customs value by themselves, but they do help define the responsibilities, costs, and risks between buyer and seller. If a shipment has no commercial value yet still generates charges or paperwork, Incoterms may help explain who is expected to handle them. For a concise overview, see the U.S. government’s Know Your Incoterms guide.

For sample shipments specifically, one useful practical reminder from the research is that compliance can extend beyond the declared value. In other words, a sample marked “no commercial value” may still need the right HS classification, origin details, and other documents required by the destination.

What happens next if customs questions the declaration

If customs accepts the paperwork, the shipment may move on normally. If customs questions the declaration, it may ask for more information, revalue the goods, or hold the shipment until the issue is resolved.

If charges are assessed, the recipient may need to pay them before the package is released. If you believe a shipment was charged incorrectly, or the value was overstated during clearance, it may be possible to seek a review or refund depending on the circumstances and jurisdiction. Our guide on how to get a refund for excess customs duty explains the next steps at a practical level.

The most important point is to treat the phrase as a documentation tool, not a guarantee. It helps customs understand the shipment, but it does not override the normal rules on valuation, duties, taxes, or compliance.

Quick summary

“Value for customs purposes only, no commercial value” means the shipment is not being presented as a normal sale, but customs may still need a value for assessment or documentation purposes. It is often used for gifts, samples, personal effects, and other non-commercial shipments.

The phrase does not automatically mean duty-free, tax-free, or charge-free. It also should not be used to hide a commercial sale or undervalue goods. When in doubt, use the correct document type, describe the goods accurately, and follow the carrier’s and customs authority’s rules for that shipment.

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