Shipping to our northern neighbor, Canada, may seem daunting, but with the correct information and tools, you can ensure that your items arrive at their destination without hiccups. With careful planning, you can seamlessly ship your products cross-border and expand your business to a new market. Don’t let the thought of customs, duties, and taxes scare you away from reaching your Canadian customers. In this article, we’ll explore the ins and outs of how to ship from us to Canada and provide you with essential tips for a seamless shipping experience. From understanding customs duties to properly packaging your items, we’ve got you covered. So, grab a cup of coffee, and let’s dive into the world of smooth shipping!
A Few Essentials on Shipping Freight to Canada
The United States and Canada are trade powerhouses, exchanging a whopping $700 billion worth of goods yearly. But did you know shipping products northbound takes three times longer than the journey southward? U.S. companies are shipping more freight into Canada, making traffic flow busier. So, if you plan to ship products to the Great White North, prepare for a longer journey than your Canadian counterparts. Interestingly, both countries lead in exports to each other, but with different types of goods. Canada sends over raw materials like steel and aluminum, while the U.S. ships smaller but equally essential food commodities.
Finding the cheapest and most efficient way to ship parcels to Canada is crucial to your success. But with various rules and regulations to navigate, it can be a daunting task. Fear not; we’ve got you covered with some essential things to remember as you plan to send your parcels northward. Below are some shipping facets to consider:
1: Understanding Canadian Taxes and Duties
If you’re shipping to Canada from the U.S., there are three key documents you need to have in order: a bill of lading, a Canadian Customs Invoice and a NAFTA certificate of origin. Ensuring that these documents are completed accurately is essential to avoid delays in transit and delivery. To ensure that your paperwork is handled correctly, working with a customs broker or logistics provider is highly recommended. These experts can handle all the necessary paperwork and ensure your shipment is forwarded to the appropriate agencies, saving you time and hassle.
Additionally, every shipment crossing the border will be subject to a 5% tax on goods over a threshold of 20 CAD. This tax is known as the Goods and Services Tax (GST) and is applied to most goods and services sold or imported in Canada. In addition to the GST, certain goods may also be subject to additional duties or taxes, depending on their classification and country of origin. To ensure that you’re prepared for these taxes and duties, it’s vital to do your research ahead of time and understand the regulations that apply to your specific products.
2: Insurance Requirements
Shipping your freight to Canada can be costly; understandably, you may want to cut costs wherever possible. But when it comes to insurance, it’s important not to be sparing. While it may seem unnecessary, paying a little extra to ensure your shipment can actually save you money in the long run.
3: Packaging Standards
When shipping internationally, it’s essential to be aware of packaging standards specific to each country. This is especially true when shipping to Canada. While palletized freight is the standard shipping method, there are general guidelines that must be followed when moving goods across borders. One crucial guideline to note is that wooden pallets must be heated or chemically treated with methyl bromide to prevent the spread of pests and disease. This is a requirement under the International Standards for Phytosanitary Measures (ISPM 15) and applies to shipments to Canada.
4: How Long will it Take to Ship to Canada?
The time it takes to ship from the U.S. to Canada can vary depending on your courier and shipping service. It’s essential to understand that different shipping options are available, and each comes with its advantages and disadvantages. For instance, major express couriers like FedEx and DHL offer next-day shipping services to ensure that packages arrive as quickly as possible. However, these services are typically the most expensive options for eCommerce merchants.
Selecting the right cross-border package forwarder for your shipping needs is crucial to the success of your business. It’s not just about finding a service that can get your products to their destination; it’s about finding a partner who shares your values and can represent your interests in the best possible way. Take the time to research and evaluate different providers, looking closely at their strengths and weaknesses, and ultimately choose the one that aligns with your business goals and values.