Posts Tagged ‘commerical invoice’


 

Help! My Shipment is Stuck at the Border

Always OpenMany times, we as customs brokers receive phone calls from importers, shippers, dispatchers and carriers frantically trying to find out why their shipment is “stuck at the border”. Lucky for them, we are ALWAYS Open 24/7, with live reception and no voice mail.

Sometimes it is a very simple answer and other incidence’s are more complex. Below are some of the most common reasons why a shipment may be stuck at the border.

1. Documents make no mention of who the customs broker is to assist with the clearance.  “Customs Clearance- contact Pacific Customs Brokers 888.538.1566”

2. Documents are hard to decipher who the actual Importer of Record is. The Importer of Record (IOR) can be;

  •  The receiver of the goods – usually called “consignee”
  • The shipper (acting as a “Non-Resident Importer” (NRI) and already set up with a Canadian customs broker)
  • A third party having their shipments drop shipped from another location and in most cases will also be acting as a “Non-Resident Importer

3. Neither the shipper or the consignee have not set up anything formally with a Canadian customs broker to effect customs clearance.

4. The driver/freight company picking up freight only has a Bill of Lading and is not given any other documents such as a commercial invoice or Canada Customs invoice.

5. Documents/commercial invoice does not have enough information to be able to prepare the entry for presentation and clearance with Canada Border Services Agency (CBSA). Some of the information that can hold this up is:

  • not enough information to  classify the goods (Tariff Classification)
  • total value or individual values are missing
  • country of manufacture is missing
  • total number of pieces is missing
  • weight is missing
  • commercial invoice document only shows product numbers or abbreviated number & item name (no general description of what the goods are). See below for examples.

For example: — 1956842ftp clr scn/cpy/prnt (not an acceptable description)

-   1956842ftp — Scanner/copier/printer unit (an acceptable description)

6. The document is not the correct document to obtain a customs clearance (i.e. purchase order or pick ticket)

7. A few more reasons freight crossing the border is often delayed may be due to the actual commodity being shipped. Perhaps there are other government agencies that are involved in approving the goods for Customs clearance, such as items that are under control of Canadian Food Inspections Agency (CFIA).

They require CFIA approval and some commodities are under quota and require an Import Permit. Perhaps the goods are listed on the Import Control List and require an Import Permit, such as some steel items.    Meat shipments and those requirements are also extensive.

It is always a good idea to check with a customs broker for any special requirements or extra documentation and / or extra steps that may need to be taken to properly clear the goods across the border prior to ordering or shipping.

When in doubt, be sure to contact your customs broker. They’ll properly advise on what you need to do and what they need in order for your shipment (s) to avoid delays and have a seamless Customs clearance process.

 

 

 

NRI- Be Prepared Before You Ship

Antique Books and Glasses“Risk comes from not knowing what you’re doing.”
Warren Buffett

 

Would you go cliff diving without knowing how deep the water is? Of course not!

Exporting to Canada can be an easy process or difficult depending upon your knowledge and resources. Many US Companies have been setting up as Non-Resident Importers without knowing all the facts and or not enough preparation before they start using the NRI option for their sales advantage to Canada.

I always remember and refer to the Boy Scouts motto “Be Prepared” for reviewing the NRI process before you export your goods to Canada.

B – Begin the information gathering, find out what is needed to import your   product into Canada, are there any     special permits or licenses needed?

EExplore different ways you can price your product to make it attractive to the buyer. Should you build in import costs in the price you show, or detail   them on your invoice?

 P – Plan how you are going to ship and distribute your products in Canada.     Consolidate or Ship direct?

RRequest the services of our consulting team to rate your catalog of products   to discover the duty rates that may affect your delivered price.

EEstablish your final delivered price, making sure all import costs are   included to maximize profits.

PProceed with the document set up with Pacific Customs Brokers to make   sure your import account is set up and ready to avoid border delays.

A – Audit your procedures and how your paper trail will look to ensure you are in     compliance with all customs   regulations.

RReview the GST tax considerations, do you need to, or should you register   for a GST tax account.

EEducate your sales staff on how to quote a landed cost.

DDelight your customers in Canada with your no border hassle sales solution   and Sell, sell, sell!  

7 Key Elements of a Commercial Invoice

In a previous post, we explained the importance of the Canada Customs Invoice (CCI).  We recommend the use of the CCI form, but if a commercial invoice in presented, you need to ensure that your commercial invoice includes all information required for Customs clearance. Please ensure the following is included:

Vendor
The party that the commodities are being purchased from.

Importer of Record
The party that is responsible for any applicable duties and taxes.

Consignee
The location that the shipment is being delivered to.

Full Description of Commodities
Including what the goods are made out of — in laymans terms.

Quantity and Value
The quantity of each item being shipped, with corresponding unit of measure, and a broken down value.

Currency
The currency of sale on your invoice.

Country of
Origin
The country where the good was manufactured in, not the country they are being shipped from.

.

Without this basic information, the Customs clearance and delivery of your shipment may very likely be delayed until the information is obtained.

.

Have any questions? Ask Your Broker Knows and we will answer them as soon as possible!

.