Because of the complex procedure of importing and exporting goods, several organizations and individual importers or exporters hire a Canadian customs broker to act as their agent and help them throughout the government agencies and customs declaration process. Canadian customs brokers clear shipments of goods, prepare the required documents and collect necessary taxes and duties. In short, a Canadian customs broker acts as an intermediary between the government and importers/exporters, helping organizations deal with the Canadian legislation. A Canadian customs broker will provide you with the following import-export services:
Importing into Canada | Tariff Treatments and Classification
Tariff treatment is one of the most popular services offered by a Canadian customs broker. It can be defined as lowering the rate of tax which is levied by governments on originating goods under USMCA. In Canada, there are 18 tariff treatments which are represented by a code on the Customs Coding Form, BS.
Not only this, but local sales, national sales, and sometimes even an additional customs fee is charged along with the tariff. However, as a result of the preferential treatment that Canada provides to beneficiary countries of the free trade agreement, sixteen of the tariff treatments will lower the rate of duty normally payable on imported goods. This is where hiring a Canadian customs broker will make your shipping process efficient and cost-effective. They will help you find the right preferential tariff treatment according to your product and needs. These include:
- Most-Favored-Nation Rate
- North American Free Trade Agreement
- Least Developed Developing Country
- General Preferential Tariff
- Chile Tariff
- Canada Israel Agreement Tariff
- Caribbean Commonwealth Country Tariff Treatment
Conditions for goods to benefit from reduced tariffs or duty-free under preferential treatments:
- The goods must be shipped directly from the beneficiary country (with or without transshipment).
- The importer should have a valid proof of origin, a certificate of the origin signed by the exporter.
- They must be eligible (sufficient manufacturing performed by origin country).
Exporting into Canada | Obtaining a Customs Duty Clearance Bond
Another thing a Canadian customs broker is responsible for is to make sure that all necessary documentation related to your import or export is complete. Whether that is purchasing a customs clearance bond from a surety company to transmitting the bond to federal agencies, a Canadian customs broker takes care of all the paperwork and hassle only to ensure that your products are imported or exported with the utmost safety.
Taking Care of the CUSMA Process Fee
Officially known as the Canada-United States-Mexico Agreement, CUSMA is a new and free trade agreement that has been effective since July 01, 2020. According to the CUSMA, preferential tariff treatment will now be based on satisfying the shipment rules of the origin state. Though most of its clauses are the same as NAFTA, having a Canadian customs broker will help you re-qualify your products and ensure that all necessary requirements are met before importing or exporting them. A Canadian customs broker will also prepare all the export documentation and pay for all the taxes required by Canadian Customs departments to ensure that your goods get customs clearance quickly, sparing you the storage costs.
Provide Personalized Advice
Every organization has specific business needs, especially small-scale businesses. Having a good Canadian customs broker will pay attention to your brand’s particular needs and create an export-import strategy accordingly.
Looking for a Canadian Customs Broker?
Our Customs Brokers help exporters and importers process declarations through associated border agencies and customs. From preparing the required documentation to calculating duties and other taxes on behalf of importers, to arranging inspections required by the Canadian government and safely delivering your products, we do it all. Our Canadian customs brokers offer the most accurate tariff treatments, customs duty, CUSMA process fee, and total taxes. Contact us to hire a reliable Canadian customs broker right away!