FAQ

CUSTOMS

What Does a Canada Border Services Agency Broker do?

A Customs Broker is a highly trained and Licensed professional who acts as your agent between you and Customs. They act on behalf of commercial importers and exporters in transactions with the Canada Border Services Agency and Canada Revenue Agency. Customs Brokers are instrumental in processing goods through customs quickly and efficiently while upholding government laws and regulations.

As Customs Brokers act on importers behalf with Canada Revenue Agency, the broker must be bonded and must file a bond with Customs as a requirement of being issued the Customs Brokers license. The Customs Broker's license is applicable on a nationwide basis.

 

How are Customs Brokers fees charged?

Customs Brokers usually base their fees according to the dollar value of the shipment and the nature of the goods being imported. In some instances, the Customs Broker and client may agree on a flat rate per shipment or arrive at  minimum/maximum amounts. It is important to set up a fee schedule with your Broker so you can easily see how their charges are arrived at.

 

How do I pay for DUTY and TAX?

Once we have processed your credit application, an account is created for your company and a line of credit established. CrossBorder Solutions then immediately pays the Canadian Border Services Agency or the IRS on your behalf for any monies owing related to the duties and taxes applicable to each shipment processed. It is important to remember that payment of Duty & Tax is done by your broker as soon as your goods cross the border. So once you receive our invoice for these charges, immediate remittance is required.

 

What is NAFTA and I how can I determine if the goods I am Importing or Exporting qualify?

NAFTA stands for the North American Free Trade Agreement, a trade agreement between Canada, the United States, and Mexico that allows for reduced or duty-free rates on goods that are imported from these countries.

Only the supplier or manufacturer of the goods can determine if the goods qualify. Detailed information can be found at: http://www.naftanow.org/

 

What is an HS number?

The Harmonized System (HS) is intended to serve as a universally accepted classification system for goods so countries can administer customs programs and collect trade data on exports and imports. It was designed to replace the varied tracking methods used by countries and create one common classification system by which to track trade and apply tariffs.

The system was developed by the Customs Cooperation Council (CCC), now known as the World Customs Organization (WCO). The WCO, located in Brussels, is an international organization consisting of representatives of about 139 countries or territories.

 

What is a NON RESIDENT IMPORTER? (NRI)

A non-resident importer, aka NRI, is a company located outside of the importing country, acting as the "Importer of Record". They are then responsible for the duty, taxes and any other disbursements paid upon importing.

Many of the retailers in Canada insist that their U.S. supplier's ship to them delivered duty paid (DDP). This means the seller prepays the Canadian import duty, tax and ancillary costs. To do this, the U.S. Supplier registers with the Canadian government to become a Non-Resident Importer.

This program was developed to specifically assist U.S. sellers access the lucrative Canadian market on a level playing field with Canadian domestic sellers. Becoming an NRI makes it possible to successfully compete for market share since Canadian purchasers then find it as easy and cost-effective to buy from the U.S. as from a Canada. Contact us clientcare@crossborder.net and we will help you get setup.

 

What documents do I need to get my goods through Canada Border Services Agency?

A properly completed invoice is required showing the shipper, purchaser, a detailed description of the goods, quantity, country of origin and currency of settlement. A Canada Border Services Agency Invoice can also be used (see Resources), For goods of U.S. or Mexican origin a NAFTA (North American Free Trade Agreement - see Resources) Certificate of Origin will be required to claim duty relief. Certain products such as meat products, seafood and dairy require special documentation. Please contact us for details.

 

What is AMPS?

AMPS (Administrative Monetary Penalty System) are a penalty regime imposed by Canada Border Services Agency for a wide range of infractions, errors and omissions. Working with a professional Customs Broker familiar with the many import regulations, will help you avoid these penalties...

 

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VEHICLE SHIPPING

How do I import a vehicle into Canada?

The first thing to do is to consult the registrar of Motor Vehicle website www.riv.ca  to see if Transport Canada will allow the import of your vehicle. Many vehicles imported from the USA are admissible, and vehicles from other countries are in general not allowed to be imported. Once that determination is made there is an obligation to notify US Customs of the export of the vehicle at least 72 hours prior to export. Arrangements for import into Canada, payment of any duty and taxes and filing of the necessary RIV forms can all be set up through CrossBorder Solutions Vehicle Import specialists. Contact clientcare@crossborder.net.

 

How can I arrange for the Transport of my Vehicle?

At CrossBorder Solutions, we manage the transport of 100's of cars every year throughout North America. We can offer you choices of transport from open car carriers to specialized enclosed vehicle transporters. We can arrange for the door to door transport of your vehicle in conjunction with the importation thus making for a seamless and hassle free process. Contact us at: clientcare@crossborder.net.

 

Is my vehicle insured while in transit?

Unless you buy specific All Risk transit insurance, your vehicle moves under the general liability insurance of the carrier. With this coverage, you need to prove that the carrier was at fault or negligent, before their insurance will consider your claim. It is important to read the terms of the carriers Liability policy before shipping. Alternatively you can purchase All Risk Insurance which differs from Carriers liability as it pays for damage or loss without you having to prove fault by anyone. Contact us for details and costs of this coverage clientcare@crossborder.net.

 

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CARGO SHIPPING

What documents do I need in order to Export my goods out of Canada?

If you are exporting to the USA or Mexico, a detailed Commercial invoice complete with detailed product information, country of manufacture, quantity and selling price is sufficient. Some commodities however are subject to export or import controls so always check first with your Customs Broker or Freight Forwarder.

For goods being exported to other countries, the same Commercial Invoice is required and the goods must be reported using the B13 form which can now only be done online. Follow this link for more information. http://www.statcan.gc.ca/exp/index-eng.htm. You also need to verify that the goods being exported do not require an export permit.

 

Do all ocean shipments require an original Ocean Bill of Lading be surrendered prior to delivery?

Yes BUT only if the Shipper instructed the shipping line to issue one. The shipper can request Original or Express/Non-Negotiable Bills of Lading to be issued. Originals require that one endorsed copy be surrendered at destination prior to shipment being released. With Express Bills of Lading, no documents need to be submitted and cargo will be automatically released to the consignee.

 

How long does it take to get goods overseas via Sea freight?

There are many variables that go into this answer. The size of the freight, the country of destination, the number of carriers that go there etc. etc. We suggest that you speak with your CrossBorder Specialist who can answer all these questions and give you recommendations and advice on the best routing to suit your needs and budget.

 

What is Chargeable Weight/Volume weight?

All carriers (land,ocean,air), but especially air carriers, assess their rates based on a ratio of weight to volume. Each transport type has its own ratio that they use. This is why it is critical when securing shipping rates that accurate weight and volume (dimensions of each shipping piece) be given to the carrier for pricing. When the carriers weight ratio is applied to the volume of the shipment and it results in a higher number, this is then referred to as the Chargeable or Volume weight.