E-commerce Trade is Big Business for Small Business Owners
The ability to do business online is creating a platform where businesses of all sizes are engaging in international trade. E-commerce is changing the market dynamics and the value of commerce on a global scale. Trillions of dollars are exchanged globally between businesses. This evolving global market has put a strain on customs agencies and other participating government authorities to efficiently apply their specific rules and laws. Especially those agencies that lack the capacity to manage the growing stream of parcels and packages.
The Challenge for Small Businesses
In addition, small businesses face challenges understanding and complying various international rules and regulations applicable to their commercial imports and exports. This includes lack of expertise to apply the appropriate tariff classification, which may include a beneficial tariff application or a tax benefit.
Trade policies and laws that govern various government rules in international trade are not easy to understand and apply. These laws and rules create pervasive barriers to the layman trader. The World Trade Organization (WTO) has tasked its membership to promote trade facilitation and reduce barriers to small businesses participating in international trade.
Complicated Rules of Trade
The rules of trade are not static and continue to grow in complexity and coverage as countries engage in additional trade agreements across numerous countries. This results in overly complicated systems, documentation and compliance requirements. It is hard to keep up and feel confident that all bases are covered and benefits and tax breaks realized for that small business.
Simplified Importing Processes
Customs agencies are trying to modernize the design and delivery of their specific trade policies so that trade is facilitated for big and small business. However a lot of these changes require legislative reform and the building or rebuilding of electronic systems to include single window applications amongst all applicable government agencies. Countries are at various stages as they progress down this road and even the more advanced countries continue to grapple with these changes and the need to keep up with the growth of global e-commerce.
Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) are working towards simplifying the importing process for all trade partners in international trade. They provide a guide to importers at:
Expert Advice You Can Trust
International Trade is a complicated process for small and medium businesses. Pacific Customs Brokers can assist you with any and all of your trade questions from importing, exporting, transporting and storage. You can receive advice on all of the requirements and benefits applicable to your business, whether it’s importing or exporting.
You can save a lot of headaches and ensure you are compliant with customs, while receiving all of the possible benefits applicable to your goods and your bottom line.