Guidelines for U.S. Shippers Who Ship to Canada by Courier

• Get updates on trade, Customs and regulatory changes
• Stay informed on trade compliance seminars,
  workshops and industry events

x

Canadian Society of Customs Brokers Oct 06, 2015

The Canadian Society of Customs Brokers has prepared a set of guidelines for U.S. shippers who ship by courier. These guidelines address the most common areas where errors occur or where inadequate information is presented.

1. Make sure that you show the Exporter, Importer and/or Purchaser of the Goods/Sold to Party and that Purchaser’s/Sold to Party’s Address information on the commercial invoice. It is not sufficient to show the Consignee. If the Name and Address of the Purchaser/Sold to Party are not provided, there can be delays or errors in identifying the customs broker responsible for customs clearance, accounting and duty payment. Providing only the Consignee information can lead to a misrouting of the shipment information.

2. Make sure that your employees are properly trained on the courier software if they are expected to use it. It is the data within the courier software that is used to make the declaration to CBSA and that determines how the courier will treat the information flow. If a shipment is commercial, do not put an individual’s name in the Business Name field. A personal name should be shown in the contact field only when the shipment is going to a business. Most courier software will categorize a shipment with an individual’s name in the address field as a non-commercial shipment and therefore it will not be properly routed to the correct customs broker.

3. Invoices are important for efficient shipment processing. The invoice that you upload or create must be the same as the invoices placed inside and outside your package.

4. Provide detailed descriptions, including the composition and end-use of the goods. This is a Canada Border Services Agency (CBSA) requirement to ensure proper clearance and accounting for duties and taxes. A precise description allows CBSA to effectively assess the package’s risk without causing additional delays. A Part Number is not acceptable as a description, nor is a generic description. All items must indicate country of origin (manufacture). Couriers rely on accurate descriptions to determine how the goods will be released upon arrival in Canada. Some goods are not eligible for the streamlined release process. Failure to properly describe goods may result in delays and serious penalties for importers. These penalties relate to a variety of compliance failures including undervaluation of the goods, incorrect tariff classification or incorrect origin reporting. An example of a full description would be, 20 units of ¾ inch steel nuts, used in furniture assembly, made in the USA. Another example is 1 ladies t-shirt, 50/50 cotton poly blend, made in Mexico.

5. For goods qualifying under NAFTA or any other Free Trade Agreement, please indicate this on the commercial invoice, within the courier software, if used, and on the shipping label. This will assist the customs broker in applying the correct rate of duty at time of entry.

6. Terms, ie FOB, DDP, DAP etc., must be stated on commercial documents, and in the courier software, if used. Commercial invoices must clearly indicate the name of the party acting as the Importer of Record. This may be the consignee, purchaser or the vendor if acting in the capacity of a Non-Resident Importer. If you, the shipper, are accepting responsibility for payment of Canadian Duty and Taxes but you are not the Importer of Record, copies of all transaction documents, including clearance entry, must be forwarded to the Importer of Record for document retention in accordance with CBSA regulations.

7. Indicate the full value of the goods on the invoice. Failure to indicate the value will create delays and undervaluation could lead to a seizure of the goods. Shipments valued at greater than CDN$2500 are not eligible for release under the Courier Low Value Shipment program and are processed in a different system.

8. For multiple part shipments, place all documents (import permits, licenses, invoices) in one envelope attached to the lead package. On the commercial invoice, indicate "part lot of tracking # of the original shipment” or “part 1 of 4” or ”part 4 of 4” for example. This is the best way to ensure a single customs entry is filed.

9. For sample shipments, temporary imports and other goods where there is “no sale” (ie warranty repair), indicate the true value of the goods as follows: “For Customs Purposes, value is US$XXXX”.

10. Maintain in your records, the shipping preferences/exceptional circumstances/procedures of your Canadian purchasers. This allows you to better service the Canadian customer and mitigate misunderstandings at the border. For example, XYZ Canadian company will not accept DDP shipments, and does not allow for shipments without a PO number issued.