Business

Important Tips to Keep in Mind when Preparing for Customs Clearance in Canada

Customs clearance is a compulsory part of shipping goods from one country to another. Before your freight can leave the port of origin, you must get the export clearance. Likewise, your cargo can only officially enter the destination country when you obtain an import clearance.  

Customs clearance can be a complex process with a lot of pitfalls. That is why you may want to work with experts in this field. To help you avoid any delays or extra costs, the tips below will help you when preparing for customs clearance:

Choose a Licenced Customs Broker

 Customs brokers facilitate the customs clearance process and make sure your shipment meets all standards, laws, and regulations. They can make the customs entry less stressful for you and assist you with the documentation, taxes, duties, and payments you must deal with.  Clearit customs clearance services will walk you through every step of the customs clearance process and inform you of best practices, so you can avoid making mistakes. 

Know the Documentation and Forms Requirements

Although specific documentation and forms required will vary based on the contents of the shipment, all shipments going to Canada must include the following information:

  • Shipment valuation. Each product that enters Canada or the United States should be assigned a value used for some purposes including evaluating duties, collecting accurate statistics, and determining the applicability of additional legal requirements. Your broker can help you determine valuation which involves considering many factors.
  • Transaction value. Generally, the value listed on a commercial invoice is the price a buyer must pay for a product. This refers to the transaction value of the product. This value must reflect money paid for assists, commissions, production costs, royalties, and packaging. Transaction value must not include transportation or insurance costs or taxes paid on the item. These above factors must be included in the invoice. Undervaluing goods can lead to penalties.
  • Non-transaction value. In situations when it’s not possible to assign a transaction value, alternate processes to determine value. This includes the transaction value of identical merchandise, transaction value of similar merchandise, deductive value, and computed value.
  • Determination of country of origin. Importers must offer information on a product’s country of origin. This information is used to determine eligibility for free trade agreement benefits, determine duty rate, evaluate the applicability of antidumping duties, and determine eligibility for import. 
  • Tariff classification. Products that enter Canada should be assigned a 10-digit Customs Tariff code used for evaluating tariff and duty obligations. Also, it is used to determine eligibility for free trade agreement benefits. 

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