Posts Tagged ‘Canada’

Did you know that you don’t have to be in Canada to be in Canada?

November 15th, 2011

Did you know that you don’t have to be in Canada to be in Canada?

For as long as we’ve been in business we have acted as the Canadian presence for U.S companies with distribution requirements in Canada. Sounds simple enough and it is (once you get through the initial education process with the U.S client).

The top 5 advantages are as follows:

  1. You can consolidate all your shipments moving into Canada and do a single customs clearance. So (as a simplified example) instead of 25 shipments at $40 ea, you can clear the whole lot for under $100.
  2. Domestic transportation is less expensive than international shipping methods, which saves money and also makes the traceability of the shipment easier to manage.
  3. You can ship blind. The Canadian customer receives the shipment from London or Cornwall instead of Dallas or Miami.
  4. The Canadian customer doesn’t get hit with duties, taxes and clearance fees. It’s all worked into the price F.O.B. the customer’s door
  5. The same applies for Canadian business shipping to the states or for processing return shipments for credit or repair.

As it happens the big integrators offer this service too. The key difference in using a smaller company to do the consolidation, bulk clearance, deconsolidation and final distribution is the personalized service that the big guys just can’t deliver. That includes the extra hand holding off the top to get the system rolling including streamlining the document preparation.

Due to steadily increasing security safeguards crossing our borders, having accessible professionals to guide you is becoming increasingly important. In the spirit of adding clarity to customs clearance, we trust this has been helpful and we look forward to any comments or further questions you might have.

Our Definition of the Day!

Input tax credit Input Tax Credits are the vehicle for recovering the GST HST paid out on purchases and expenses related to your commercial activities and are often referred to as ITCs in Revenue Canada documents (related to your customs clearance documents) on shipments coming into Canada.

How Will the Columbia Free Trade Agreement Affect You?

August 18th, 2011

On Aug 15, 2011 the Canada – Columbia Free Trade Agreement came into force. I took a quick look at the agreement and the possible impact for our customers and Canadian business in general.

Currently, total Canadian imports and exports are about $400 billion of goods each way, each year. That number is about $650 million (each way) between Canada and Columbia. Free trade agreements like this one, allow companies to buy and sell goods to each other duty free. My initial impression- this will be a significant factor to encourage increased trade between our countries – not so.

What Do Canadian Businesses Buy from Columbia

Petroleum and Coal $300 million
Coffee, fruits, vegetables and cut flowers $325 million
Other stuff $75 million

What Do Canadian Businesses Sell to Columbia

Wheat, Oats and Cereals $240 million
Machinery, vehicles, chemicals $210 million
Other stuff $150 million

Looking at the above list, petroleum, coal, coffee, fruits and vegetables were already duty free entering Canada…even without a free trade agreement. The bottom line? It’s no big deal unless you import cut flowers, then you can save an additional 6%.

Something to add? We welcome your comments!