Archive for the ‘Non-Commercial Importing’ Category


 

Why Am I Losing Money When Shipping to Canada?

Frustrations arising from cross-border shipping to Canada are always showing up in  my Google Alerts.  Most are from online auction type sellers who really do not understand the customs clearance process. Some try to save the customer’s money by  placing a false value on the goods which can result in even more costs for false declaration and lengthier delays for the receiver in Canada. Some e-sellers  refuse to ship to Canada altogether as they feel it is too much hassle and have lost money in  the transaction or received bad feedback from buyers.

Have you been faced with this situation?

1. Why do my customers in Canada want me to ship USPS?

This could be because it is cheaper to do so.

2. When I ship via postal service why does my customer in Canada send me a message four weeks later informing me they did not receive the package and I should resend it?

It could be because there is no traceability and it might be lost or stolen.

3. When I ship using a small parcel courier why do they hold my package hostage until the customer pays all the customs charges? Often the customer refuses to pay and the parcel company ships the package back and charges me for it.

Using the small parcel courier now provides you with the ability to track your package, but does your customer in Canada know what to expect to pay in  extra customs charges when the goods are delivered? If they don’t they may feel the charges are too high and it is no longer worth buying the product.

4. When I ship using the “other” small parcel company, why do they bill me all kinds of customs charges but the customer still gets their package?

The small parcel courier is on a customs program called the Low Value Shipment Courier program (LVS), in which the courier is allowed to declare and deliver the package and then that small parcel company sends out a letter stating how much they owe in duty, taxes and brokerage. If the Canadian customer does not respond, the “other” small parcel courier’s service guide directs them to bill the charges back to the shipper for any unpaid customs charges.

“Regardless of any payment instructions to the contrary, the sender is ultimately responsible for payment of duties and taxes if payment is not received.”

5. Why is my business losing so much money when selling to Canadians?

See 2, 3, and 4 above.

Have you explored all your options when shipping and selling to customers in Canada?

Before you ship or sell your products to customers in Canada, do your homework and consider calling a Canadian customs broker who can assist you in:

  • understanding the complexities of the cross-border transaction
  • save you money in fees
  • avoid unnecessary hassles at the border and with angry Canadian customers
  • streamline your shipments for a speedy delivery and a less costly transaction

The Non-Resident Importer option may be one solution. Preparing your Canadian customer on what to expect and having a solution in place may be another. Contact us before you finalize your next sale, and we will work with you and your Canadian customer to help both of you make a smooth cross-border transaction.

Do you have further questions about shipping to Canada? Feel free to ask them in the comment section below.

Personal Exemptions for Travelers Entering Canada

Customs WalletA week ago, I participated in a trade show.   While there were some great meaningful business conversations, there were also those with questions about personal importations.   Several were inquiries about auto imports, which we always expect due to the current strength of the Canadian dollar, but many were inquiring on cross border shopping and the value of goods that can be entered into Canada without having to pay duties or taxes.

With the summer holidays quickly approaching, it is probably worth reviewing your personal exemptions:

  • Just crossed the border to fill up your gas tank?   (i.e. less than 24 hours) – $20.00 of merchandise
  • More than 24 hours but less than 48 hours?     $50.00
  • More than 48 hours but less than seven days?   $400.00
  • More than seven days?   $750.00

Of course, you hear stories every day of travelers who are in excess of their personal exemption but are still allowed to enter Canada without paying duties and taxes.   Ultimately, the decision lies with the Canada Border Services Agency (CBSA) officer.   It is your obligation to declare all goods acquired for importation into Canada, whether purchased or received as gifts, and truthfully answer any questions asked by the CBSA officer.   It is at the CBSA officer’s   discretion whether or not you pay any duties and taxes.

If you use the NEXUS lane, it is strongly suggested that you review the NEXUS rules for import declarations.   Several people have mentioned that the rules have changed somewhat, but I would exercise caution.   Personally, I treat my NEXUS card like gold and would not want to risk placing it in jeopardy. I greatly value the opportunity to use the expedited lanes to enter the U.S. and return to Canada with greater ease than the regular traffic.

If you want to see the complete version covering personal exemptions, please go to the following link: http://www.cbsa-asfc.gc.ca/publications/dm-md/d2/d2-3-1-eng.pdf.

Happy shopping!

Shipping Christmas Gifts Cross Border

CORPORATION TO CORPORATION

With the holiday season upon us, many corporations may be sending gifts to clients and vendors. Before your company sends out gifts internationally, you should be aware of a few details:

1) Arrange for customs clearance through your customs broker. The receiver of a gift shouldn’t be responsible for these charges, and will not have the required knowledge of the item being gifted in order to complete the Customs entry. Even though these are free, non-solicited gifts, they will still be required to clear through Customs, and all applicable duties and taxes to be paid. This means that the gift in question will need to be accompanied by a pro-forma invoice, including all of the same required information as any other import. You must also declare an accurate commercial value for the product, as the Canada Border Services Agency (CBSA) does not accept inaccurate valuation.

2) Alcohol and spirits can be more expensive when shipping internationally. Importing alcohol into Canada is subject to high duty and excise tax rates, and the import must be routed through a board, commission, officer, or governmental agency legally authorized to sell intoxicating liquor. If gifting liquor is a must, try contacting a winery or liquor store in the Canadian domestic market to purchase from and ship on your behalf.

3) What is in that gift pack? If purchasing prepackaged gift packs, be aware of what is in it. Certain commodities such as meats, cheeses, fish & plant products require additional certificates, licenses, permits, and often carry high levels of applicable duties, making it extremely difficult to process such small quantities of these commodities contained in these gifts. Our suggestion is to stick to gift packs which are made up of items such as cookies, chocolates, coffee, crackers, oils, candles, etc., and avoid anything made from animal or animal products.

The bottom line is that if your organization is sending gifts cross border, be prepared to treat them like every other export that is moved across international borders.

ONLINE SHOPPING

Many shoppers are choosing to stay away from the crowds, and are turning to online shopping. When shopping, and therefore shipping, internationally, you need to be aware that these goods are still required to clear through Customs.

You will need to be prepared to pay all applicable duties and taxes when the item moves across the border. If the shipment is sent by mail and valued under $60.00 CAD, then there is the potential for the Canadian Border Service Agency (CBSA) to allow the shipment to enter Canada without duties and taxes being paid. If you are purchasing from online auction sites, then you will be almost guaranteed to be responsible for the import charges.

Although it will be a personal, non-commercial entry, in order to process the import you will be required to provide an invoice, including country of origin of the product, currency, and a complete description of the product(s) being shipped.

PERSONAL GIFTS BY MAIL

If you have friends or relatives who live abroad and are mailing you gifts, please ensure that they properly qualify the item as a gift and include a customs declaration.

For an item to qualify as a “gift”, a friend or relative must send it to you personally and include a card or other notice indicating that it is a gift.

  • If you receive an imported gift by mail that is worth $60 CAD or less, you will not have to pay duty or tax on it.
  • If the gift is worth more than $60 CAD, you will have to pay any applicable duties and taxes on any amount over $60 CAD.
  • For example, if a relative sends you a gift worth $200 CAD, you must pay any applicable duty, GST or HST and PST on $140 CAD.

Items that do not qualify for the $60 CAD gift exemption include the following:

  • tobacco;
  • alcoholic beverages;
  • advertising material; and
  • items sent by a business.

Please also note that the $60 CAD gift exemption cannot be combined with the $20 CAD exemption that is available on most items valued at $20 CAD or less.

** These guidelines are applicable all year round, and are not specific to the Holiday Season.

Will you be shipping Christmas gifts cross border this year?

Non-Commercial Entry of Firearms

In the United States of America, the Second Amendment to the United States Constitution gives its citizens the right to keep and bear arms.

Unfortunately for U.S. Citizens traveling cross-border into Canada, they sometimes forget that firearms are still a controlled item for entry into Canada, even if being entered temporarily. When traveling into Canada with your undeclared gun, firearm or other prohibited weapon, you may be refused entry, have the item in question seized, or possibly be arrested.

To legally bring your firearms into Canada, you must register it at your first point of entry using a “Non-resident Firearm Declaration” form (CAFC 909) with the Canada Border Services Agency (CBSA). You will be required to present a fully completed form (with two additional copies) at your first point of entry.

Firearms fall into three (3) categories:

1. Non-restricted firearms:

  • An ordinary rifle, shotgun or combination gun that is not described below
    as being restricted or prohibited.

2. Restricted firearms:

  • A handgun that is not a prohibited firearm.
  • A semi-automatic, centre-fire rifle or shotgun with a barrel length less than
    470 mm (18.5 inches) that is not prohibited.
  • A rifle or shotgun that can fire when its overall length is reduced by
    folding, telescoping or some other means to less than 660 mm (26
    inches).
  • Any firearm prescribed as restricted (including some long guns).

* If you are declaring a restricted firearm, you will require an Authorization to Transport (ATT). To find out how to apply for an ATT, call the Canada Firearms Centre at: 1-800-731-4000 in Canada and the USA. If you are outside Canada and the USA, please call (506) 624-5380. For further information online, please visit their web site at: http://www.cfc-cafc.gc.ca before you come to Canada.   You cannot enter Canada with a restricted firearm without an ATT.

3. Prohibited firearms:

  • A handgun with a barrel length of 105 mm (4.1 inches) or less.
  • A handgun designed or adapted to discharge 25 or 32 calibre ammunition.
  • A rifle or shotgun that has been altered to make it less than 660 mm (26 inches) in overall length.
  • A rifle or shotgun that has been altered to make the barrel length less than 457 mm (18 inches) where the overall firearm length is 660 mm (26 inches) or more.
  • An automatic firearm and a converted automatic firearm.
  • Any firearm prescribed as prohibited.

* Prohibited firearms are not allowed entry into Canada.

Also note that some large-capacity magazines are prohibited even if the firearms to which the magazines are attached are allowed. As a general rule, the maximum capacity is:

  • five cartridges for most magazines designed for a centre fire semi-automatic long gun; and
  • ten cartridges for most handgun magazines

There is no maximum magazine capacity for other types of long guns, including semi-automatics that discharge only rim-fire ammunition.

You will need to declare to CBSA the purpose for traveling with your firearm, whether it”s a hunting trip, a competition, in transit movement, personal protection in wilderness areas of Canada, or other reasons.   It is always recommended to bring proof in the form of a hunting license or competition registration/advertisement should CBSA ask for it.

Once the declaration has been confirmed by a CBSA Customs officer, it acts as a license for the owner and as a temporary registration certificate for the firearms brought to Canada; and it is valid for 60 days. The declaration can be renewed for free, providing it is renewed before it expires, by contacting the Chief Firearms Officer (CFO) (call 1-800-731-4000) of the relevant province or territory.

You must be able to produce the completed declaration on demand and will require it to purchase or receive ammunition.

This information is provided solely for non-commercial purposes and in no way should be considered all inclusive.   If you have any questions about personal firearm inportations, please call 1-800-731-4000 in Canada and the USA. If you are outside Canada and the USA, please call (506) 624-5380. For further information online, please visit the Royal Canadian Mounted Police’s Canadian Firearm Program web site at: http://www.cfc-cafc.gc.ca.