Over $400 billion CAD worth of goods were imported into Canada in 2015. Importation of products is rarely a simple process, especially for a company with little experiencing in importing goods. However, the assistance of an experienced customs broker can help the importation process proceed much more smoothly so that you receive your products faster and with less hassle.
Key Factors to Consider in the Importation Process
People who are unaccustomed to receiving shipments from companies outside Canada are often unaware of the requirements for importing products. They may place orders for seemingly benign goods such as office supplies, medical equipment or clothing without realizing that there are usually additional charges and processes to follow for one or more of the following:
• Canadian taxes
• Governmental clearance fees
The calculation of duties and taxes is not a simple process. Duty rates fluctuate according to the type of goods purchased and the country where the goods were manufactured. For instance, duties are not charged on products made in the United States and Mexico. Taxes are typically charged on all orders with a minimum value of $20 CAD and the total amount will depend upon the rates set by the federal and provincial government.
Options for Handling Canadian Customs
The responsibility to pay duties and taxes lies with the purchaser. Buyers sometimes have the option of paying the company that ships the equipment to handle the importation process. In this case, the supplier typically utilizes a freight forwarder and charges the buyer a fee for handling these fees. This option can be costly to the buyer because some suppliers choose to add hefty fees for this service.
A more viable option for handling customs clearance in Canada is to enlist the help of an experienced customs broker. A trusted broker will handle the payment of duties and taxes and serve as your PARS checker. Additionally, an experienced customs broker will know the fastest means of taking care of these charges and will be able to expedite the delivery of your goods.
Advantages of Using an Experienced Professional
Customs brokers are an excellent solution to your importation woes. They have the experience and connections to ensure that your products clear customs as quickly and efficiently as possible. By handling the payment of duties, taxes and documentation for you, brokers help you avoid hassles related to the customs clearance process. They also allow you to focus on the development of your business by saving you valuable time and money.