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The declared amount is printed on the merchant's invoice. It is your proposal of how the content of your parcel is worth.
It is used as the basis for taxation. If you declare $100 at a 20% tax rate, you will be charged $20 VAT. On top of value added taxes you might be charged toll fees, but usually that's only >$500, so rarely applicable. The customs officers don't have to take your word for it. They can open the parcel and tell you how much it's worth. This whole thing really depends on your country
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