A new white paper from Purolator International, “5 Tips for Improving U.S./Canadian Border Clearance Efficiency,” sheds light
on important processes and best practices that can help ensure seamless, hassle-free border crossings.
Following is a brief overview of some of the information included in the white paper.
Most common mistakes occur in three categories:
In general, the value listed on a commercial invoice should be the price a buyer has paid for a product (and not the amount the goods will be sold for). This is called the product’s transaction value.
In some situations, it is not possible to assign a transaction value. In those situations, alternate processes for determining value will be applied that include:
Importers also have an obligation to provide specific information about a product’s country of origin. This information is necessary for several reasons, including:
Since many imported goods consist of materials from more than one country or goods that are manufactured in processes performed in multiple countries, complex rules have been established to determine the country of origin.
Every product entering Canada must be assigned a 10-digit Customs Tariff code that is used to assess tariff and duty obligations, and to assist in determining eligibility for free trade agreement benefits. But determining the exact code can be a time-consuming and exacting process, and unless the individual making the classification assignment truly understands the process, it is easy for errors to occur.
International shipping operates under a uniform set of standards – known as Incoterms – that establish clear expectations and responsibilities between buyers and sellers.
For purposes of ground shipments traveling between the United States and Canada, Incoterms choices are generally limited to the three terms commonly referred to as “Arrival Group D.” Within this category are the Delivered at Terminal (DAT), Delivered at Place (DAP), and the Delivered Duty Paid (DDP) options.
The primary difference between these three terms of service is that a DDP transaction places responsibility for payment of customs, taxes, and brokerage fees on the seller. DAT and DAP shipments place these responsibilities on the buyer.
The Canadian government allows a U.S. business to register as a Non-Resident Importer (NRI), which offers many benefits that include:
Multiple government resources are available to assist businesses interested in becoming an exporter.
State resources vary, but in general, a business can look to its state government for services ranging from official trade mission visits to market research to funding opportunities.
A Basic Guide to Exporting: This publication provides comprehensive information about the export process and is considered a “must read” for any business interested in pursuing export opportunities.
Network of industry-specific “Centers of Excellence and Expertise” that oversees trade policy and serve as a resource for the trade community
Among the benefits of using a logistics partner that truly understands the clearance process:
Related White Paper
5 Tips for Improving U.S./Canada Border Clearance Efficiency
When Canada's Office of the Auditor General released its 2017 audit focused on “customs duties,” a key finding included the fact “that importers misclassified about 20 percent of goods coming into Canada and may have ended up paying a lesser amount of duty as a result.” Download Now!