A review of Canada Border Services Agency (CBSA) customs clearance analytics found as many as 20% of goods arrived at the border with an improper tariff classification code assigned. The result, the review concluded, was an annual loss to the Canadian government of at least $42 million in uncollected duties.
No business, of course, would knowingly pay more in customs clearance fees than what was legally required. But the rate at which shipments arrive at the border with incorrect tariff classification codes – the codes that identify a product and determine the amount of customs duties owed – points to the complexity of the customs clearance process. And tariff classification codes are just one of several pieces of information required for customs transactions.
Customs compliance can be confusing and time-consuming if you don’t have the support or knowledge to navigate the border clearance system. And this is true both for Canadian businesses shipping to the U.S., and those importing into Canada.
Consider, for example, guidance offered to potential exporters by Canada’s Office of the Trade Commissioner: “Inaccurate or incomplete documentation is the most common reason for export shipments having trouble entering the United States. A little extra time spent on your paperwork will contribute a great deal to a problem-free customs clearance.”
This eBook will familiarize you with the customs clearance process and help you better understand:
- Factors to consider in determining if the United States is a viable market for your products.
- Key components of the U.S. customs clearance process, including how to avoid common mistakes.
- Resources to help navigate the border clearance process.
- The importance of a Canada-to-the-U.S. logistics strategy that addresses:
- Cross-border procedures for inventory management and distribution.
- Solutions for ensuring on-time, efficient deliveries throughout the United States.
- A plan for managing product returns.
Understanding the nuances of the American market, and having a proactive plan in place to guide the way will be essential to success. As Canadian businesses consider expanding to the U.S., Purolator will be there to help, from the first mile until the last, and everything in between.