February 5, 2020
Canada's infrastructure of airports, ocean ports, rail terminals, and highways allow for multiple routing options for all types of freight. Understanding the best method to transport your cargo to and from an address is key to determining the most efficient freight routing to ensure your goods arrive on time and your logistics and supply chain operations are cost-effective.
Canadian businesses are located throughout the country from coast to coast. Canadian start-ups could consider settling into areas that are less than 100 miles from entering into the United States commerce via a border crossing and disbursing product into a courier network.
How easy is it to do business in Canada?
Due to Canada's international trade agreements, investor protection, low corruption, and minimal red tape, Canada is an ideal location for start-ups and businesses expanding into new countries. Canada has recently reduced its corporation tax by 3% in 2019, which makes it one of the lowest rates internationally. With 119 official border crossings between the USA and Canada, moving freight has become seamless to those who have investigated the correct setup.
Also, Canada boasts one of the highest e-commerce adoption rates globally. By the end of 2020, e-commerce sales in Canada are expected to reach 55.78 billion Canadian dollars. By 2021, there will be an estimated 23.7 million e-commerce users in Canada, representing two-thirds of Canada's total population.
Preparing to import – any business or individual can act as an importer and must obtain a business number from Canada Revenue Agency CRA.
Classifying your goods - you will need to determine the correct tariff classification number. These numbers, along with the goods country of origin, are used to determine the rate of duty you must pay when importing.
Determining duties and taxes - you need to establish the appropriate tariff treatment that applies to your goods before you can determine the rate of duty. GST into Canada applies to most products.
Shipping and reporting your goods - Place your order with the vendor, shipper, or exporter and identify the mode of transportation that will be used (highway, marine, rail, air, postal, or courier service). All commercial goods must be reported to the CBSA whether you transport it yourself or have a carrier carry it for you.
Getting your goods released - Either full accounting and payment of duties for release of products or release of assets before the payment of duties.
After your goods are released - Adjusting errors in the accounting information, you submitted. Keep all records about the import for six years. Be aware that your importations may be verified and adjusted by the CBSA - Canada Border Service Agency.
Customs Broker services include Customs Valuation, Tariff Classification, Customs clearance, automated customs clearance through government-initiated programs such as Single Window Initiative (SWI) and Customs Self Assessment (CSA), Non-Resident Import services, Valuation, Origin of Goods or Harmonized System (HS) Code Ruling requests with the government of the importing country.